Hipages

About Hipages

Hipages Group Holdings Ltd (ASX: HPG) operates Australia's largest online marketplace for trade services, connecting homeowners with tradespeople, commonly known as "tradies". The company was founded in 2004 by childhood friends Roby Sharon-Zipser and David Vitek. The initial idea, born from Sharon-Zipser's personal frustrations while renovating his own home, started as a broader online directory called Viteknologies, which included categories like natural therapies and pet services. Recognizing the significant opportunity in the home improvement sector, they pivoted to focus primarily on trade services. Sharon-Zipser, with a background as a Senior Accountant at PwC and founder of an audit solutions firm, brought financial and operational management expertise to the venture. Vitek, an engineer who had worked at IBM, provided the technical foundation.

The company's core business model is centered on a Software as a Service (SaaS) platform where tradies subscribe to receive job leads from consumers. Consumers can post jobs on the platform for free, and hipages then sells these leads to its network of subscribed tradies. Revenue is primarily generated from these recurring subscription fees. This model has proven to be counter-cyclical; as economic activity cools and consumer demand softens, competition among tradies for work increases, driving more subscriptions to the platform. To supplement its core marketplace, hipages has expanded its services. It now offers Tradiecore, a job and workflow management app designed to help tradies with administrative tasks. Furthermore, the company has expanded its geographical footprint by acquiring Builderscrack, New Zealand's leading home repair marketplace, and invested in Bricks+Agent, a property management platform.

A significant milestone in the company's history was its initial public offering (IPO) on the Australian Securities Exchange (ASX) on November 12, 2020. The listing raised $100.4 million, valuing the company at an indicative market capitalization of $318.5 million. The funds were allocated to brand building, technological investment, and future growth initiatives. The company has demonstrated consistent growth, reporting total revenue of $67.0 million in FY23, up 8% from the previous year, with recurring revenue making up 94% of that total. As of FY23, the platform supported 35,700 subscription tradies and saw an Average Revenue Per User (ARPU) of $1,872. In a strategic evolution, co-founder David Vitek resigned as CEO in 2019, with Roby Sharon-Zipser leading the company as CEO through its public listing and beyond.