TIDMTMT
RNS Number : 4308J
TMT Investments PLC
13 December 2022
13 December 2022
TMT INVESTMENTS PLC
("TMT" or the "Company")
Portfolio Update
TMT Investments Plc (AIM: TMT.L), the venture capital company
investing in high-growth technology companies, is pleased to
announce the following developments in the Company's portfolio
since the publication of the Company's interim results for the six
months ended 30 June 2022 on 16 August 2022.
Revaluations and Exits
-- Muncher, a cloud kitchen and virtual food brand operator
operating in Central and South America ( www.muncher.com.co ), has
completed a new equity funding round. The transaction represented a
revaluation uplift of 41% (of US$1.6 million) in the fair value of
TMT's investment, compared to the previous announced amount as of
30 June 2022.
-- In its 2021 Annual Report, the Company reported that Delivery
Hero SE, one of the world's leading local food delivery platforms,
had announced in October 2021 that it had entered into an agreement
with TMT's portfolio company Hugo Technologies Ltd. ("Hugo") (
www.hugoapp.com ) , to acquire Hugo's multi-category marketplace's
core food delivery and quick commerce business in Central America
(the "Original Disposal") . As a result of the Original Disposal,
the fair value of TMT's investment in Hugo rose to approximately
US$3.8 million as of 31 December 2021. Given the significant delays
in the completion of the Original Disposal, TMT decided to revert
the fair value of its investment in Hugo to the pre-Original
Disposal level of approximately US$1.8 million in its 2022 Interim
Report published in August 2022. In November 2022, the Original
Disposal finally completed under amended terms (the "Final
Disposal"). While the final payment consideration amounts implied
by the Final Disposal are still being finalised, TMT now expects
the fair value of its investment in Hugo to be closer to the amount
envisaged by the Original Disposal (i.e. US$3.8 million), implying
an NAV increase of approximately US$2.0 million from the amount
announced in the 2022 Interim Report. TMT originally invested a
total of US$1.2 million in Hugo in 2019 and 2020.
Negative revaluations
-- Usual Beverage Co., currently trading as Usual (
https://usualwines.com ), and previously as Vinebox, has completed
a new equity funding round, in which TMT decided not to
participate. As a result of this funding round being highly
dilutive, TMT expects the fair value of its investment in Usual to
be reduced to approximately zero, compared to the previous reported
amount of US$0.45 million as of 31 December 2021.
New Investments
The Company has also made the following new and additional
investments:
-- Additional GBP0.5 million in Laundryheap Limited, a
marketplace for on-demand laundry and dry-cleaning services (
www.laundryheap.com );
-- Initial US$1.0 million in MedVidi Inc., an online mental
healthcare provider ( www.medvidi.com );
-- Additional US$0.5 million in Bafood Global Limited, a hyper
local ready-to-eat food delivery and cloud kitchen operator in
Eastern Europe ( https://bafood.app ); and
-- Additional US$0.2 million in My Device Inc., trading as
Whizz, a device-as-a-service e-bike rental company ( www.getwhiz.co
).
Alexander Selegenev, Executive Director of TMT, commented:
"The majority of TMT's portfolio companies, including its
largest holdings, continue to demonstrate good business progress
and are adapting well to the challenges of the current
environment.
TMT's largest portfolio holding, ride-hailing and food delivery
platform Bolt ( www.bolt.eu ) has been finding its lower-cost
competitive advantage very timely in today's environment, enabling
it to continue delivering notable revenue growth and margin
improvements, with the additional security offered by its very
sizeable cash reserves following its successful capital raise in
January 2022.
Whilst the significantly reduced share prices of publicly traded
technology companies continue to negatively affect the value of
TMT's equity stake in NASDAQ-traded cloud storage company Backblaze
( www.backblaze.com ), TMT's second largest investment, its
business has been developing well, recording 27% revenue growth in
the third quarter of 2022 compared to the same period of 2021 (or
6.8% growth compared to the second quarter of 2022). Backblaze
remains well capitalised with approximately US$80 million in cash,
short-term investments and restricted cash reported as of 30
September 2022.
Regarding the early and mid-stage component of TMT's portfolio,
the recently published State of European Tech 2022 report indicates
there is around US$44bn worth of "dry powder" available in Europe
alone for venture capital investment and an increasing level of
private equity funding available for growth companies, taking the
total to over US$80bn. Companies with strong business models are
continuing to attract competitive attention from investors and this
bodes well for a number of TMT's early and mid-stage portfolio
companies. A good example is Muncher, TMT's portfolio company,
whose recent financing round of US$27.3 million resulted in a 41%
revaluation uplift of TMT's investment in Muncher.
TMT continues to make very selective investments into new and
existing portfolio companies when attractive opportunities
arise.
As of 12 December 2022, TMT had approximately US$10.2 million
(unaudited) of cash and bank deposits with no debt. With over 55
companies in its portfolio and an established 12-year track record
as a publicly traded company, TMT offers a diversified and liquid
route to access some of the fastest-growing technology companies
globally. Our strategy of early stage investing into exciting and
innovative fast growth companies continues, with a focus on areas
with significant growth potential such as SaaS and the online
delivery of mental health services.
We look forward to keeping shareholders updated on relevant
developments in due course."
For further information contact:
TMT Investments Plc +44 (0)1534 281 800
Alexander Selegenev (Computershare - Company Secretary)
Executive Director
www.tmtinvestments.com alexander.selegenev@tmtinvestments.com
Strand Hanson Limited
(Nominated Adviser)
James Bellman / James Dance +44 (0)20 7409 3494
Cenkos Securities plc
(Joint Broker)
Ben Jeynes +44 (0)20 7397 8900
Hybridan LLP
(Joint Broker)
Claire Louise Noyce +44 (0)20 3764 2341
Kinlan Communications +44 (0)20 7638 3435
David Hothersall davidh@kinlan.net
About TMT Investments Plc
TMT Investments Plc invests in high-growth technology companies
across a number of core specialist sectors and has a significant
number of Silicon Valley investments in its portfolio. Founded in
2010, TMT has a current investment portfolio of over 55 companies
and net assets of US$210 million as of 30 June 2022. The Company's
objective is to generate an attractive rate of return for
shareholders, predominantly through capital appreciation. The
Company is traded on the AIM market of the London Stock Exchange.
www.tmtinvestments.com .
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END
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