SPA raises $10M to fund Vodafone app launch and platform growth
Our newest Investment Spacetalk (ASX: SPA) just raised $10M at 7.5c per share.
We participated in the raise, adding to our position.
A nice thing to see - CEO Simon Crowther took $100K in the raise - director buying is always a good sign when our Investments raise cash.
While it doesn’t guarantee success, it’s a positive sign to see management putting in a decent amount of money into a raise.
SPA says the cash will go towards launching the co-branded Vodafone app, migration to TPG's wholesale network, inventory and new devices. (source)
The Vodafone app is the bit we are watching most closely, when it announced this last month:
Last month SPA signed an MoU with Vodafone Australia (owned by ~$7BN TPG Telecom) to offer SPA's family safety app to its ~2.8M postpaid customers.
SPA’s technology is a family-safety platform, hardware plus an app, that lets families stay connected and keep track of each other across different life stages:
Today's raise funds SPA to deliver on that partnership as it works to convert the MoU into a binding agreement.
A quick refresher on what SPA does
SPA sells Australia's #1 best-selling kids smartwatch, a phone alternative that blocks social media and the open internet.
(you can buy one here or at your favourite electronics retailer)
Around the watches SPA has built recurring revenue streams - Spacetalk Mobile (its own mobile plans) and a family safety app launched in November 2025.
SPA is doing ~$10.9M in ARR (annual recurring revenue) and is guiding for $20-25M ARR by the end of 2026.
The plan is to distribute the app through telcos globally, with Vodafone the first proof point.
Read our latest note on SPA here: SPA: Vodafone Australia to offer SPA family safety app to its millions of customers
What we want to see next from SPA
Rollout SPA’s app to Vodafone customers
SPA’s now converted the MoU into a binding commercial deal - next we want to see the App go live and turn into revenues for SPA.
Milestones:
- ✅ Binding commercial agreement signed
- 🔄 App made available to Vodafone post-paid customers
- 🔲 First revenue recognised from the partnership
Expand telco distribution internationally
We want to see SPA prove Vodafone wasn't a one-off and open up adjacent markets.
Here are the milestones we are tracking:
- 🔲 Spacetalk Mobile live in Sweden & Germany (early Q1 FY27)
- 🔲 A second (ideally international) telco partner signed
Grow recurring revenue to the $20–25M ARR target
This one is more of an overarching goal - we want to see SPA hit its $20-25M ARR target.
Here are the milestones we are tracking for this:
- 🔄 Active mobile subscriber growth (currently 57.9k users)
- 🔄 Grow monthly active app users
- 🔄 Grow Annual Recurring Revenues to $20-25M
