Australia tech unicorn: A rare breed emerges after two-year drought in Australian tech scene

• Australia’s tech unicorn drought broken by Deputy’s billion-dollar valuation milestone after US customer investment
• Deputy, a workforce management software maker, achieves unicorn status with $37 million investment from Express Employment Professionals
• Founder Ashik Ahmed’s journey from immigrant flipping burgers to unicorn status highlighted
• Previous struggles during COVID-19 lockdown overcome as Deputy reports profitability for over 18 months
• Investment from Express provides Deputy with resources to continue business growth, expand user base, and introduce new tools for shift workers.

Australia’s Tech Unicorn: Deputy Breaks the Billion-Dollar Valuation Milestone

Australia’s tech scene has witnessed a significant milestone with the emergence of the country’s first tech unicorn in two years. Deputy, a workforce management software maker, has achieved a billion-dollar valuation, marking a breakthrough after a prospective US customer invested $37 million in the company.

Deputy: From Near Collapse to Unicorn Status

Deputy’s journey to unicorn status has been nothing short of remarkable. The company, founded in 2008 by Ashik Ahmed and Steve Shelley, faced challenging times during the COVID-19 lockdown era when demand for its software plummeted. However, Deputy managed to stay afloat and even turned profitable for more than 18 months, showcasing resilience and adaptability in the face of adversity.

The recent investment from US-based Express Employment Professionals, a global staffing and labor hire company, not only validates Deputy’s mission but also propels the company into the coveted unicorn club. The $37 million stake acquired by Express at a valuation exceeding $1.1 billion signifies a significant increase from Deputy’s last capital raise in 2018, signaling a major turnaround for the Australian tech firm.

Related Video

Published on: January 7, 2020 Description: Melanie Perkins' $3.2 billion design platform, Canva, is one of the world's most valuable female-led start-ups. CNBC Make It's ...

Canva: She founded a unicorn by 30. Now she's taking on the tech giants | Make It International

The Australian Tech Landscape: A Look at Unicorn Companies

The emergence of Deputy as Australia’s latest tech unicorn comes at a time when the country has seen a slowdown in the creation of new unicorns. Before Deputy, the last local tech company to achieve unicorn status was social media platform Linktree in March 2022. The tech funding market downturn in early 2022 led to a halt in the consistent rise of new local unicorns, reflecting the impact of global venture capital trends on the Australian tech sector.

Research shows that only a handful of Australia’s unicorns, including Canva, Go1, Pet Circle, and SafetyCulture, have disclosed repriced rounds and revised valuations in 2023. Deputy’s entry into the unicorn club not only signifies its own success but also contributes to the diversity and growth of Australia’s tech ecosystem.

Deputy’s Path to Success: Vision, Profitability, and Growth

Deputy’s success story is a testament to its vision, profitability, and strategic growth decisions. Despite facing challenges during the pandemic, the company reported its first profit in the year ending June 30, 2023, with annual revenue surpassing $100 million. The appointment of Silvija Martincevic as CEO brought fresh leadership to the company, emphasizing a focus on sustainable growth and responsible scaling.

The investment from Express Employment Professionals provides Deputy with the resources to further expand its offerings and reach new markets. With innovative tools for onboarding hourly workers, conducting employee surveys, and facilitating seamless communication between shift workers and managers, Deputy continues to make a significant impact in the shiftwork community.

Deputy’s journey from near collapse to unicorn status exemplifies the resilience and innovation driving Australia’s tech sector forward. As the country celebrates its first tech unicorn in two years, Deputy’s success story serves as inspiration for aspiring entrepreneurs and a testament to the potential of Australia’s tech landscape.