Cellnet moves into online retail
Nearly a million for a startup equals Off Your Trolley
ASX listed telecommunications accessories distributor Cellnet has taken a strategic stake in online discount grocery start-up, Off Your Trolley.
Cellnet said that the strategic investment was the next step in it's online strategy and expects Off Your Trolley to make a positive contribution to its earnings in the current financial year.
The fledgling online budget e-tailer launched in March of this year and is Australia's first dedicated grocery deals website.
The founders, Stacey Carlon and Sarah Costin have backgrounds in FMCG account management, inventory and online retail and marketing and started the site as a side project to their day jobs.
The investment will help the start-up to broaden its product range, upgrade its online platform and expand its marketing strategy.
Cellnet did not disclose the amount of the investment but did disclose that it had received options in Off Your Trolley that may see its shareholding increase and would issue Carlon and Costin with 750,000 Cellnet options each with an exercise price of AU$0.60 cents per share, representing a combined AU$900,000,
The options are subject to business performance targets which will be exerciseable in July 2014.
Under the arrangement Cellnet will step in to provide warehousing, distribution and logistics services to Off Your Trolley. ®