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Online services marketplace Airtasker (ASX: ART) has secured a £2.5 million ($5.1 million) media capital investment from 4 Ventures, the venture arm of Channel Four Television Corporation in the UK, building on previous agreements totalling $14.3 million struck with the media group over the past two years.
The latest deal, which involves a media inventory investment in Airtasker’s UK subsidiary, is aimed at scaling the Sydney-headquartered company’s brand and marketplace in Great Britain where the company delivered growth of 111 per cent in marketplace sales to $21 million in FY25.
Airtasker credits its “proactive marketing investment” alongside its media partnership with Channel 4 for its strong performance in the UK over the past year.
The media-for-equity strategy has been key to Airtasker’s business expansion in Australia, the US and UK.
The company secured more than $51 million in media deals in 2024 comprising partnerships with oOh!media (ASX: OML) and ARN in Australia and partnerships with TelevisaUnivision, iHeartMedia, Sinclair and Mercurius in the US.
"We’re massively stoked to be extending our partnership with Channel 4 in Airtasker UK," says Airtasker founder and CEO Tim Fung.
"The media partnership strategy has been an incredible catalyst for building Airtasker’s brand in the UK, helping us connect with millions of people who are looking to get things done and monetise their skills.
“This renewed investment is a testament to the growth we’ve seen so far and the huge opportunity we have ahead to make Airtasker a household name in the UK."
The latest UK deal builds on Channel 4’s initial investment of £3.5 million ($6.5 million) for a 20 per cent equity stake in Airtasker UK in June 2023 and a follow-on investment of £4 million ($7.8 million) in November 2024.
Each of these deals, including the latest agreement announced today, has a convertible note structure that provides Airtasker UK with the option to repay Channel 4 the principal plus a 5 per cent coupon or convert Channel 4’s investment into equity.
The latest investment provides Airtasker UK with the option to repay Channel 4 at maturity in October 2027 with the principal plus a 5 per cent coupon. Alternatively, Channel 4’s investment can be converted into equity in Airtasker UK at a 10 per cent discount to an agreed valuation.
Airtasker has the right and obligation to repurchase all equity held by Channel 4 in Airtasker UK either by cash or equity in June 2028.
The company says the latest investment reflects the strong performance of Airtasker’s UK marketplace, enabling the marketplace to grow brand recognition in the UK.
"Our partnership with Airtasker continues to grow from strength-to-strength,” says Vinay Solanki, head of 4 Ventures.
“The combination of our mass market reach and Airtasker’s outstanding product in this category is driving exceptionally strong and consistent growth for their UK business, now an established new geographic market.
“Our media for equity model, allied to the power of Channel 4’s TV advertising provides a unique ability to help entrepreneurs and fast-growing businesses to scale and unlock new opportunities.”
Airtasker’s revenue grew 12.8 per cent to $52.6 million in FY25, although the company’s net loss blew out to $31.5 million.
The loss reflected sales and marketing investments of $46.3 million and the impact of the unrealised statutory accounting losses arising from the remeasurement of the media partner share purchase liabilities.
However, Airtasker reported positive free cash flow of $1.2 million for the period.
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