Wellington start-up Hnry eyes expansion after securing $16m investment

Monday, 31 January 2022

James Fuller says we don't want the kind of startup work culture seen in the US and UK.

Fast-growing Wellington software firm Hnry, which provides an app to help the self-employed manage their accounts, has secured a $16 million investment and is planning to take on 40 more staff.

Hnry chief executive James Fuller said the bulk of the funds were being invested by US growth equity firm Left Lane Capital.

The funding would allow Hnry to roughly double its staff numbers, which number 30 in New Zealand and about 10 in Australia, in the next few months, he said.

The investment was being made at a price that valued Hnry at more than $100m, he said.

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The company, which was founded in 2017, is now used by tens of thousands of self-employed in New Zealand and a “good few thousand” customers in Australia following its launch there last year.

Fuller said Hnry’s revenues were five times what they were in June 2020 and were growing in Australia at the rate of about 20 to 25 per cent a month.

Hnry was now evaluating expansion into other overseas markets, with several options on a short list, he said.

”People are struggling with outdated practices,” Fuller said. “We’ve always been clear that this is a global problem.”

There was however still a lot of potential growth in the New Zealand market, where about 40 per cent of its business came from referrals from friends and family, he said.

“Our main focus for growth at the moment is Australia and New Zealand.

“At the last count, there were between 400,000 and 500,000 individuals in New Zealand who earned some or all of their income from self-employment.”

While they could muddle through their accounts on their own, Fuller said using the app would simplify matters considerably.

“This is about actually never having to think about tax again, not having to think about tax payments, not having to visit an ‘old school’ accountant in person and not having to sit there and reconcile transactions in traditional accounting software.”

Hnry charges for its service on a pay-as-you go basis, with that fee set at 1 per cent of customer income processed through its online service and app.