Spenda Platform rolls out to Carpet Court stores, signs five-year agreement to offer lending services
ASX-listed Spenda has announced that CC Spenda Platform has been successfully rolled out to the Carpet Court store network and contemporaneously, the parties have entered into a five-year exclusive agreement to offer lending services to the store network.
Following the successful completion of a pilot program, that involved the integration of the Platform into the operating environment of select Carpet Court stores, using a bespoke iteration of the Spenda Platform, Spenda and Carpet Court have successfully completed the roll-out of the Platform across Carpet Court’s entire franchise network, that consists of approximately 205 member stores across Australia.
This phase of the program is in line with the Company’s Node-to-Spoke execution strategy, through the roll-out of services to Carpet Court’s NSC (the ‘Node’) and its 205 connected stores (the ‘Spokes’), to deliver business efficiencies through software and payment services.
Having this software infrastructure in place further enables Spenda to offer lending services across the entire Carpet Court network. In this regard and contemporaneously to the successful rollout, the parties have executed a five-year exclusive Relationship Framework Deed to offer working capital finance (extended credit) to all stores.
Under the terms of the Agreement, Spenda will act as the Lender and Carpet Court will act as the Business Partner, with an initial term of five years. The parties will provide working capital finance to Carpet Court’s stores on a 30-day term for a fixed funding fee, calculated on a percentage of funds advanced to the store.
The amount of revenue to be generated by the Company under this Agreement is unable to be determined at this stage, however Spenda’s potential revenue is up to $30,000 per store, per annum.
Commenting on the Agreement and the parties’ associated partnership, Mark Hogan, Chief Financial Officer of Carpet Court, said, “The Spenda platform is delivering efficient end-to-end payment services for the NSC and members. The extended terms facility continues our digital transition and provides a flexible funding solution for members. We look forward to, building on these initiatives with the SOE pilot in coming months.”
Spenda Managing Director Adrian Floate added, “The Spenda solution is rich in functionality and as such it can often be difficult to showcase the full capabilities of our software in a way that our investors can easily digest. The Carpet Court roll out has allowed us to show how we phase an implementation and monetise Spenda’s services in clear stages, from acquiring a Node and delivering initial services to the connected Spoke network, and now further upgrading the Spokes with a working capital financing solution, retail software and additional payment infrastructure.”