2016 Deloitte Technology Fast 50 Australia

Media releases

Online shoppers’ Cashrewards is the winner of the 2016 Deloitte Tech Fast 50

22 November 2016: More than a third (38%) of the 2016 Deloitte Tech Fast 50 winners are online businesses, which notably include marketplaces and business models in the financial services and health sector, according to Stuart Johnston, Technology, Media and Telecommunications leader Deloitte Australia. A further 26% of winners are from fast growing networking and communications technology companies supporting the shift of business to the cloud, with the balance evenly spread across software and digital marketing technology businesses.

The most outstanding growth performer this year is in the online shopping sector. Joshua Tanchel, Deloitte Tech Fast 50 lead partner, said, “I am delighted to announce that the overall 2016 Deloitte TechFast 50 winner is Cashrewards, the fastest growing online shopping community in Australia. The site offers their 150,000 members access to retailers’ online stores through the Cashrewards website and then returns a percentage of the purchase price to the customer in the form of a cashback.”

“To qualify for the Deloitte Tech Fast 50 applicants must accumulate more than $8 million in revenue over a three year period. Cashrewards has swept away the nearest competition by securing a phenomenal 12,469% growth over that period: a figure significantly above the average of 731%, the highest result since 2004, and the second highest result since the Awards started in 2001,” Mr Tanchel said.

John Meacock, Chief Strategy Officer Deloitte Australia said: “Many businesses, like our 2016 Deloitte TechFast 50 winners, are focused on a long term vision enhanced by customer engagement and sound business data, supported by the latest technology. They have recognised that businesses will earn income in a very different way in the future and are at the front edge of business transformation.”

“Revenue from subscriptions, data and advertising will grow for many online companies this year, which has been the case for new businesses like Google or Facebook. Network effects have changed a lot of the ways we think about revenue, income and evaluation of businesses,” he said.

The top five 2016 Tech Fast 50 winners are:

  • Cashrewards (NSW): Cashrewards offers members a cheaper way to shop in Australia through the use of cashbacks, calculated as a percentage of the purchase price. The company has reached 150,000 members through organic growth, but expects to accelerate its growth to a target of 2 million members by the end of 2018. Offering savings on well-known brands from over 1,000 retail alliances is of course proving to be well received by members, resulting in around $210m of all Australian online retail spend originating from the company in FY16. In addition, proprietary technology tracks members’ clicks, spending, and target communications based on previous spending and interests: this data then forms the basis of their FY17 advertising rate card. (12,469% growth)
  • MoneyMe Financial Group Pty Ltd (NSW): MoneyMe Financial Group (MFG) is a diversified mass market direct lending fintech, using technology to revolutionise consumer lending to the millennial market in Australia. It was set up to disrupt the payday lending market in Australia through the use of a proprietary tech platform called “Horizon”, a cloud-based database with a loan management/lending platform that includes customer relationship and payment management capabilities. The system enables automatic approval and funding of loans, and was the first to introduce risk-based pricing and to reward borrowers for positive repayment behaviour generating cost savings from lower default rates. (2,811% growth)
  • OpenMarkets Australia Limited (Vic): OpenMarkets is Australia's fastest growing stockbroker, consistently ranking in the Top 15 brokers in Australia by trading volume in less than three years. Independently-owned, innovation-driven and technology-focused, OpenMarkets positions itself as a 'fintech' stockbroker specialising in brokerage integration with third parties. (2,778% growth)
  • Tech Mpire Limited (WA): Tech Mpire is a digital performance marketing company helping advertisers communicate with their target audiences based on extensive proprietary technology. (2,723% growth)
  • HUB24 Limited (NSW): HUB24's investment and superannuation platform offers a comprehensive range of investment options, including administration, transaction and reporting solutions. The company utilises state-of-the art technology to deliver a fully integrated service that helps track and better manage investment and superannuation assets. (1,248% growth)

Sustained growth supported by leadership around innovation and agility

More 2016 winners are showing sustained growth over long periods than last year, with 28 multiple Tech Fast 50 winners over multiple years compared to 26 last year.

Leaders of growth staged technology companies are faced with a real challenge to successfully manage a fast-growing business, and a core foundation to being successful begins with the people driving it, according to Clifford Chance Partner, Lance Sacks. “The team put in place at the outset of the growth phase is key. These people are the building blocks of the business, and its culture and agility can be the difference between success and failure," he said.

The top three 2016 Leadership Award winners are:

  • Vocus Communications Limited (NSW): Vocus is a consistent performer in the Tech Fast 50: it has been a winner in the Tech Fast 50 seven times and was ranked 11th overall this year. It is an ASX listed telecommunications provider of data centre, voice, peering and Internet connectivity across Australia, NZ and the US. (804% growth)
  • Mobile Embrace Limited (NSW): Founders Neil Wiles and Chris Thorpe launched Mobile Embrace in 2005 to solve how to engage and monetise consumers via mobile devices. Their leadership has embraced a culture of innovation, agility and a willingness to pivot the business in response to a rapidly changing market. (214% growth)
  • MNF Group Limited (NSW): MNF Group is a telecommunications software and voice service provider, specialising in IP-based voice services. Founded in 2004 and listed on the ASX in 2006, the Group has grown to be a global IP communications firm in just over a decade. The Group integrates a strong R&D pedigree, extensive network infrastructure, and international carriage capability and supports software innovation to deliver pioneer solutions. This includes the first Australian ‘plug and play’ VoIP service in 2005, and the multi-award winning TollShield platform, the world’s first solution that detects and blocks toll fraud in real-time. (171% growth)

“Leaders seeking to continue harnessing innovation in the tech industry should closely monitor the Government’s response to the recent Research and Development (R&D) Tax Incentive Review due in 2017,” said Tanchel. “Combined with the recent 1.5% rate cut in the R&D tax incentive, further probable changes to the tax and regulatory environment could have a particularly significant impact on rapid growth tech start-ups, such as reduced cash flow benefits and fewer activities qualifying for tax benefits.”

The companies and growth areas to watch

‘Rising Stars’ are high-growth nominating companies that have not qualified for the TechFast 50 list as they have less than three years operating history.

The top three 2016 Rising Stars are:

  • Tow.com.au (Qld): Tow.com.au is the first and only national towing company in Australia. Tow.com.au built and operates its proprietary TIMS platform (Tow & Impound Management System), which enables full automated dispatch of tow trucks nationally and complete end-to-end management of towing, impoundment and disposal of vehicles. (21,599% growth)
  • Araza (Vic): Araza is an IT Services company, specialising in cloud computing and digital transformation solutions. Its clients are some of Australia’s largest organisations and Government departments, including in the education, technology, insurance, telecommunications, transport, banking and professional services sectors. (1,958% growth)
  • Code Camp (NSW): Code Camp began in December 2013, when tech start-up founders Benjamin Levi and Pete Neill set out to create a solution to provide every Australian student with the opportunity to learn to code and build their own iPhone app. Code Camp conducts camps in Sydney, Melbourne, Brisbane and Wollongong and will be commencing ones in Newcastle and Adelaide in the near future. (1,603% growth)

Tanchel believes that in terms of emerging opportunities in other industries, there is a developing trend of new businesses focused on PropTech like Tech Fast 50 winner Open Agent (979%), both from a commercial and residential point of view. “Tourism, hospitality and education are also undercooked and waiting to be disrupted,” he said.

Changes in the way Australians are using data continues to disrupt. “Australia is going to continue to see the topic of big data explored, but we’re also going to see the rise of small data, as we see the convergence of both mobile and the Internet of Things occur over the next five to ten years,” Mr Tachel said. “Our demand for software also remains strong: Australian consumers want apps, browsers and software that can enrich our life experience and platforms that entertain us more.”

The Deloitte 2016 Tech Fast 50 sponsors are the ASX, NetSuite, Clifford Chance and the UK Department for International Trade.

For a full list of winners and further information on the Deloitte Technology Fast 50 Australia program, go to www.tech50.com.au and use #TechFast50au on social media.

NB: While Deloitte has existing relationships with some of the entities on the list, this does not influence or affect the outcome of the final Technology Fast 50 list, which is judged on percentage revenue growth.

Technology companies are invited to self-nominate for the Deloitte Australia Technology Fast 50 list via our website. Financial data about the top 50 companies is provided by the entrants gathered via an online survey tool and is cross-checked using each company’s financial information which is verified by their accountants or a registered auditor.

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