James Packer’s Ellerston Capital Invests A$5m into Freight Aggregator Temando

14th Feb 2012. Brisbane-based Freight aggregator Temando, has secured a A$5m investment from James Packer’s investment fund, Ellerston Capital. Terms have not been disclosed. Temando is forecast to be profitable this year and the fund injection from Ellerston will give it additional capital to expand.

“The recent investment by Ellerston Capital in Temando gives us both the financial resources and the ability to attract seasoned executives to work with the business, allowing us to take things to the next level,” says Carl Hartmann, Managing Director, Temando.

The investment follows on from Packer and Ellerston Capital’s 2011 investments into online retailers DealsDirect (understood to be $10m for a 33% stake) and Catch of the Day (total consortia investment of $80m for a 40% stake), which helped highlight the shipping issue.

“DealsDirect has opened our eyes to all of the moving parts in the e-commerce industry,” said Ellerston investment manager David Leslie. “Online the challenge is to make the purchase experience like a real retail experience so when you buy something, you want it in your hand as soon as possible.”

Founded in 2007, Temando has more than 15,000 customers and is working at different stages with more than 60 of the top 100 retailers, including Bing Lee, Super Retail Group and Anaconda. Temando’s business model is to aggregate 200 of the top freight carriers into a single access point for the online retailer, allowing them to seamlessly offer best rates and delivery options for every customer. Temando’s managing director is Carl Hartmann, who has over 10 years in Digital Media and has held previous roles with Fairfax Digital and News Corporation. According to Hartmann, the idea for Temando originally came to him when he tried in vain to find a carrier who could cost-effectively ship a statue of Buddha to the other side of Australia. There was no simple way to find the right shipping solution.

“The stronger Temando gets means that shipping prices will continue to remain competitive, and where possible, get lower due to economies of scale, in an industry with ever rising costs. Ultimately, we will remain focused on our customers in our quest to keep shipping prices low and conversions high.” says Hartmann.

Ellerston Capital, which is run by Mr Jacob and partly owned by James Packer’s private company Consolidated Press Holdings, will pay about $5 million to take an undisclosed cornerstone shareholding in Temando.
David Leslie said the Ellerston Special Opportunities fund, which has made the DealsDirect and Temando investments, was looking at other opportunities in the technology sector. “Ellerston has the competency and a lot of expertise in investing in these high-growth technology businesses,” he said. “We see ourselves building a real franchise in this space.”
Ellerston has put together an advisory board for these opportunities. It comprises Mr Jacob and Mr Leslie as well as former Consolidated Media Holdings executive Martin Dalgleish and Crown’s former investor relations and business development head Anthony Klok.

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