Latest / What the Flux / Aussie startup exits for $1.6 billion | Guzman y Gomez slows down US plans | eBay acquires Depop for Gen Z

Transcript

Aussie startup exits for $1.6 billion | Guzman y Gomez slows down US plans | eBay acquires Depop for Gen Z · What the Flux

• 0:05
  Speaker 1: This is what the flucks.
• 0:06
  Speaker 2: I'm Brett and I'm justin and it's Monday, the twenty
• 0:09
  Speaker 2: third of February.
• 0:09
  Speaker 1: Get this one, Juzzy boy. Since the rollout of CHETCHWT
• 0:12
  Speaker 1: and other AI tools, employees who feel hard done by
• 0:15
  Speaker 1: have been representing themselves with their trustee AI lawyers writing
• 0:19
  Speaker 1: their legal docs. In fact, there has been a seventy
• 0:22
  Speaker 1: percent jump in workplace claim huge So the Fair Work
• 0:26
  Speaker 1: Commission is up to its eyeballs and cases and obviously
• 0:28
  Speaker 1: can't deal with the demand.
• 0:29
  Speaker 2: Flux am Every single month you get stung by Netflix
• 0:32
  Speaker 2: and Spotify and your gym and your insurance, and sometimes
• 0:35
  Speaker 2: it's hard to know where all these subscriptions are coming from. Well,
• 0:37
  Speaker 2: in the Flux app, we have the Subscription track Up
• 0:39
  Speaker 2: where you can connect your bank account in thirty seconds
• 0:41
  Speaker 2: and see all of your subscriptions in the one place.
• 0:43
  Speaker 2: Helps you see what's coming out, what you're spending, and
• 0:45
  Speaker 2: how to cancel them. So if you want to save
• 0:47
  Speaker 2: some money on your subscriptions this month, make sure to
• 0:49
  Speaker 2: download the Flux app and check out the Subscription track Up.
• 0:51
  Speaker 1: Three enormous stories today, Judi boy, Let's do it for
• 0:54
  Speaker 1: our first Ozsie Health tech startup Eucalyptus has been snapped
• 0:57
  Speaker 1: up for one point six billion dollars by It's US
• 1:00
  Speaker 1: equivalent in one of the biggest health tech exits for
• 1:03
  Speaker 1: a while.
• 1:04
  Speaker 2: Jeez had some regulatory trouble and Bang gets the big exit.
• 1:07
  Speaker 1: So tell me what's going on here. So Eucalyptus was
• 1:09
  Speaker 1: founded seven years ago by some of the early employees
• 1:11
  Speaker 1: of Koala Mattris.
• 1:12
  Speaker 2: The goal was to build Eucalyptus into a house of
• 1:15
  Speaker 2: digital health brands.
• 1:16
  Speaker 1: We're talking Pilot for men's health like hair loss and ed.
• 1:20
  Speaker 2: We'd be talking kin for women's health like fertility, pregnancy
• 1:23
  Speaker 2: and postpartum.
• 1:24
  Speaker 1: And also skincare brand software.
• 1:26
  Speaker 2: And don't forget Junipart, which specializes in weight loss medication
• 1:29
  Speaker 2: like the Big o, Zebik and Juzboy.
• 1:32
  Speaker 1: Eucalyptus has been on the venture capital treadmill since it started,
• 1:35
  Speaker 1: first raise eight million Series eight, then thirty million Series B,
• 1:38
  Speaker 1: sixty million Series B and at a five hundred and
• 1:40
  Speaker 1: sixty million dollar valuation by the BUYE and B Man.
• 1:43
  Speaker 2: Eucalyptus had plans to raise at evaluation of ever one
• 1:45
  Speaker 2: point three billion dollars later this year, but.
• 1:47
  Speaker 1: Before that raise, the US health tech giant Hymns and
• 1:50
  Speaker 1: Hers has swooped Eucalyptus.
• 1:52
  Speaker 2: Announced that Hymns and Hers Health will acquire Eucalyptus in
• 1:55
  Speaker 2: an all cash deal worth more than one point six
• 1:57
  Speaker 2: billion dollars, with.
• 1:58
  Speaker 1: The plan to turn Yuke into its international division and
• 2:01
  Speaker 1: b man.
• 2:02
  Speaker 2: Eucalyptus has really ridden the wave of demand for weight
• 2:05
  Speaker 2: loss drugs like ozempit.
• 2:06
  Speaker 1: Yep, It's positioned itself as a discrete healthcare service which
• 2:09
  Speaker 1: has clearly worked to treat for them.
• 2:11
  Speaker 2: So what is the key leading here?
• 2:12
  Speaker 1: In highly regulated industries, expansion is rarely as simple as
• 2:16
  Speaker 1: translating your website and flicking on the switch. Especially in
• 2:19
  Speaker 1: industries like healthcare, financial services, and energy, there are many
• 2:23
  Speaker 1: layers of regulation. Throw on top of that, each country
• 2:25
  Speaker 1: has its own regulators, its own approval processes, and its
• 2:28
  Speaker 1: own quirks.
• 2:29
  Speaker 2: So it can take years to navigate a new country.
• 2:30
  Speaker 2: So a roll up strategy like this becomes especially attractive
• 2:33
  Speaker 2: and US boy.
• 2:34
  Speaker 1: Although it aims health tech, Ramsey Healthcare did something similar
• 2:37
  Speaker 1: back in twenty eighteen when it wanted to expand its
• 2:39
  Speaker 1: presence in Europe.
• 2:40
  Speaker 2: YEP, if I'm not mistaken, it acquired KPO for one
• 2:43
  Speaker 2: point three billion dollars.
• 2:44
  Speaker 1: The goal was to enter deeper into Europe with a
• 2:46
  Speaker 1: business already embedded within the healthcare systems. Then and clearly,
• 2:49
  Speaker 1: Hymns and Hers has international ambitions, so you gives it
• 2:52
  Speaker 1: a big head start. And while both companies have faced
• 2:55
  Speaker 1: a lot of regulatory scrutiny recently, it clearly hasn't stopped
• 2:58
  Speaker 1: Hymns and herspping up eucalyptus. For our second.
• 3:02
  Speaker 2: Story, Gridsmithie Gomes shares have fallen ten percent after it
• 3:05
  Speaker 2: warned investors to be patient with its US losses.
• 3:08
  Speaker 1: All right, past the britobolo jazzy boy. It's gluten free
• 3:11
  Speaker 1: and I want to slice what is going on here?
• 3:13
  Speaker 2: Okay? So Grizvidio Gomez was founded in Australia twenty years
• 3:16
  Speaker 2: ago and became one of the most hyped IPOs on
• 3:18
  Speaker 2: the ASX in twenty twenty four.
• 3:19
  Speaker 1: Because it pitched to not only grow in Australia but
• 3:22
  Speaker 1: also the US, which is a big, big Mexican food market.
• 3:25
  Speaker 1: All right, give you the numbers, ban soyg's network sales
• 3:29
  Speaker 1: increased eighteen percent to over six hundred and eighty million
• 3:32
  Speaker 1: back that was slightly below the nineteen percent growth that
• 3:34
  Speaker 1: the market expected, but most of the concern was on
• 3:36
  Speaker 1: its US business, where it wrapped up eight mili in
• 3:39
  Speaker 1: losses for the first half.
• 3:40
  Speaker 2: And be man In a responsible but kind of ominous sign,
• 3:43
  Speaker 2: gg's management has capped its US expansion at just fifteen
• 3:47
  Speaker 2: stores for now.
• 3:48
  Speaker 1: Yeah, they say they want proof that the model works
• 3:50
  Speaker 1: before going bigger.
• 3:51
  Speaker 2: There and now it shares a trading at less than
• 3:53
  Speaker 2: its IPO price and less than half of its peak
• 3:55
  Speaker 2: price from last year. And while there were still big
• 3:57
  Speaker 2: believers in the GYG story, it's one of the most
• 4:00
  Speaker 2: shorted companies on the ASX. So what is the key
• 4:03
  Speaker 2: learning here?
• 4:04
  Speaker 1: Short selling is effectively when investors bet that a company's
• 4:07
  Speaker 1: share price will fall in the future.
• 4:09
  Speaker 2: Short sellers borough shares. They sell them at today's price
• 4:11
  Speaker 2: and aim to buy them back later at a lower
• 4:13
  Speaker 2: price and pocket the difference.
• 4:15
  Speaker 1: High short interest often signals a lot of skepticism.
• 4:19
  Speaker 2: In fact, the man Gig is the fourth most shorted
• 4:22
  Speaker 2: company on the whole ASX.
• 4:24
  Speaker 1: Yeah, about thirteen and a half percent of its shares
• 4:26
  Speaker 1: have been shorted.
• 4:27
  Speaker 2: That means thirty and a half percent of god Minigomez's
• 4:30
  Speaker 2: total shares on issue have been borrowed and sold by
• 4:32
  Speaker 2: investors who are betting that the price will fall.
• 4:34
  Speaker 1: So it's fair to say a decent slice of the
• 4:36
  Speaker 1: market thinks the current valuation is too high and that
• 4:39
  Speaker 1: earnings in the future may disappoint.
• 4:41
  Speaker 2: And b man, a decent slice of the market have
• 4:43
  Speaker 2: been right to doubt the US burrito dreams so far.
• 4:46
  Speaker 1: But Guig needs to prove that it can turn this
• 4:48
  Speaker 1: burrito around.
• 4:49
  Speaker 2: For our third and final story, eBay has dropped one
• 4:52
  Speaker 2: point two billion US dollars to acquire the sustainable fashion
• 4:55
  Speaker 2: company Deeper as a way into gen Z hearts and wallets.
• 4:59
  Speaker 1: Eba wants to the cool kit again. What is the
• 5:01
  Speaker 1: story here?
• 5:02
  Speaker 2: Okay so Eba was founded back in nineteen ninety five
• 5:04
  Speaker 2: and was the og online marketplace for buying and selling
• 5:07
  Speaker 2: secondhand goods.
• 5:08
  Speaker 1: Think vintage fashion, electronics, home goods, where sneakers, and obviously
• 5:12
  Speaker 1: a lot more.
• 5:13
  Speaker 2: Ye back in the day, people made entire businesses out
• 5:16
  Speaker 2: of flipping secondhand stuff on eBay. Yep, and eBay still
• 5:18
  Speaker 2: has over one hundred and thirty million active users, but
• 5:21
  Speaker 2: their growth is definitely not what it used to be. No, no, no,
• 5:23
  Speaker 2: These days gen Z are turning to new platforms like
• 5:26
  Speaker 2: deeper to buy and sell their closing instead.
• 5:28
  Speaker 1: Deepop only launched in twenty eleven, but its popularity has
• 5:31
  Speaker 1: quickly grown through social media and a very loyal gen
• 5:34
  Speaker 1: Z customer base.
• 5:35
  Speaker 2: Compare this to eBay's core customers, who are now aged
• 5:38
  Speaker 2: between thirty five and sixty.
• 5:39
  Speaker 1: Four, and it's no surprise that eBay has made a
• 5:41
  Speaker 1: move to purchase depop for one point two billion US
• 5:44
  Speaker 1: dollars and b Man.
• 5:46
  Speaker 2: EBA's investors are like this. They showed their approval with
• 5:48
  Speaker 2: a seven percent jump in eBay share price.
• 5:51
  Speaker 1: Now eBay's on the fast track to win gen Z
• 5:54
  Speaker 1: hearts and wallets.
• 5:55
  Speaker 2: So what is the key learning here?
• 5:56
  Speaker 1: When big established brands hit a growth wall, they offered
• 6:00
  Speaker 1: whoose to buy growth in inorganic ways? Yeah, the global
• 6:03
  Speaker 1: sustainable fashion market is projected to more than double in
• 6:06
  Speaker 1: size over the next decade. The deep hop is more
• 6:08
  Speaker 1: than just a marketplace for clothes. It's actually built a
• 6:10
  Speaker 1: strong community of young sustainability conscious shoppers.
• 6:13
  Speaker 2: Instead of trying to replicate that cultural connection with a
• 6:15
  Speaker 2: new product, Eba just outright bought deep Op.
• 6:18
  Speaker 1: Yeah, this business approach isn't new. Back in twenty twelve,
• 6:21
  Speaker 1: Facebook now known as Mata, acquired Instagram for very similar reasons.
• 6:25
  Speaker 2: Yep, heaps of young people were jumping ship to Instagram,
• 6:27
  Speaker 2: so instead of competing, Facebook just brought them in the
• 6:29
  Speaker 2: house instead. So for user based platforms like eBay, young
• 6:32
  Speaker 2: customers aren't just the nice to have no no no,
• 6:35
  Speaker 2: they are the growth engine that will keep the marketplace
• 6:37
  Speaker 2: relevant for the next decade. Fox Am. If you notice
• 6:40
  Speaker 2: direct debitt's coming out of your bank account every single
• 6:42
  Speaker 2: month and you don't know where they're going all y,
• 6:44
  Speaker 2: the Flux Subscription Tracker is your place to find them.
• 6:46
  Speaker 2: In under thirty seconds, we can identify all your subscriptions
• 6:49
  Speaker 2: in the one place so you can cancel. Make sure
• 6:51
  Speaker 2: to download the Flux app and check out the Subscription Tracker.
• 6:53
  Speaker 1: Thanks for listening and we'll see you on Wednesday.