Telstra will take a majority stake in the company after announcing it has entered into a binding transaction agreement with the Brisbane-based company. What Telstra is paying for Neto, and other terms of the investment, have not been disclosed.
Neto, which launched in 2011, provides a cloud-based e-commerce solution that allows small to medium sized retailers and wholesalers to quickly establish an end-to-end online store.
Current customers of Neto include The Spotlight Group, Anaconda, Drizabone and Edible Blooms and, according to the company, it also has a strong relationship and integration with eBay, with a majority of its customers also having a presence on eBay.
“We estimate that by 2020, 82% of SMEs will have a web presence, rising from 58% today.
“The role of e-commerce will only become more important in the competitive retail environment. The Neto platform allows businesses to meet the needs of customers at their convenience: where they want and when they want.
“Neto is a truly innovative Australian company and our investment will represent a great opportunity to deliver value to our customers.”
Neto Founder and Director, Ryan Murtagh, said that the investment to be made by Telstra means that the company will have an opportunity to expand at a faster rate and help Australian retailers compete on a global scale.
“We started Neto four years ago and have grown rapidly during that time as online shopping has become mainstream.
There is still so much growth to occur though, especially in the Australian market, and the investment to be made by Telstra will give us the scale and scope to maximise our growth.”