How Airtasker's smart media deals allow it to scale with minimal cash burn
Airtasker's media-for-equity strategy drives major growth
Scaling fast with limited cash burn
Airtasker takes on the UK and the US
Airtasker (ASX:ART) has a unique way of building its brand, swapping equity in the company for advertising space.
It all started in 2016, when Airtasker struck a media-for-equity deal with Seven West Media (ASX:SWM), giving Seven an 18% stake in exchange for brand exposure.
This helped boost Airtasker's brand awareness from 6% to 60%, and revenues immediately shot up 20 times.
When Airtasker floated in March 2021, Seven West Media cashed out for $45 million, pocketing a sweet 5x return.
Fast forward to today, Airtasker is now locking in similar deals with other media firms.
Scaling without burning cash
Rather than forking out big chunks of cash for advertising campaigns, Airtasker now works with major media partners like oOh!media, ARN, Channel 4, and others, who provide significant advertising inventory in exchange for equity in Airtasker's local operations.
It's a model that's still fairly niche, but it's gaining traction among fast-growing consumer brands looking to scale without taking on debt or blowing their budgets.
And because these media partners now hold equity, they're aligned with Airtasker's long-term success. Everyone's incentivised to make the campaigns work.
It's a model simply designed for growth without the cash burn.
Airtasker's 11.6% rise in Australian revenue for the H1FY25 came from a $3.6 million marketing investment, with $2.6 million of that being non-cash, thanks to these partnerships.
Pretty smart capital efficiency, and it's what allows the company to scale while keeping its balance sheet healthy.
At the end of the half, Airtasker finished with $18.3 million in cash and term deposits on its balance sheet.
Win-win
But here's where it gets really interesting.
At the end of a five to seven-year runway, Airtasker has the option to buy back that equity from its media partners.
The valuation will be simple: it will be based on local revenue, multiplied by Airtasker's own revenue multiple.
And the buyback can be done in cash or Airtasker shares, whichever makes more sense to Airtasker at the time, giving the company flexibility.
It's a win-win.
Airtasker gets audience scale without upfront spend, and its media partners get clear path to exit with an upside.
Taking the strategy global
Airtasker has taken this media-for-equity play to the UK, with Channel 4 investing another £4.0m ($7.8m) in exchange for an unsecured convertible note issued by Airtasker UK.
This follows a £3.5m ($6.7m) it put in last year, bringing Channel 4's total investment to £7.5m ($14.5m).
With this partnership, Airtasker now has access to Channel 4's 47 million viewers, or 78% of the UK population.
The company has now ramped things up, taking the strategy to the US.
Airtasker raised US$9.75 million through partnerships with two massive media players there: iHeartMedia, America's top audio company, and TelevisaUnivision, the leader in Spanish-language content.
These partnerships give Airtasker access to a combined 376 million people.
iHeart has 276 million audio listeners and TelevisaUnivision has 100 million daily viewers across TV, radio, and digital platforms.
'We are super pumped to be building on the momentum of our global media partnership strategy by joining forces with two of America's leading media companies – iHeart and TelevisaUnivision – to scale Airtasker in the USA!,' said CEO, Tim Fung.
Enter: Formula One
Meanwhile, away from media companies, Airtasker has also stepped onto the global stage through a unique partnership with the newly rebranded Visa Cash App RB Formula One Team, or just VCARB.
For context, VCARB is Red Bull's second F1 team (previously known as AlphaTauri), now backed by Visa and Cash App.
The partnership gives Airtasker branding rights across the F1 circuit.
Airtasker's whole proposition with VCARB is about highlighting the unsung heroes behind the scenes.
The people keeping everything running smoothly in the garage, organising the logistics, and making sure everything's spot on. Just like Airtasker's Taskers, the company said.
Also, Formula One's audience has grown fast in recent years, fuelled by younger viewers and a global following thanks to Netflix's Drive to Survive.
'I'm really pumped to reaffirm our full-year free cash flow and revenue growth guidance and keeping up the momentum in the second half," Fung said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
This airline is facing the ultimate makeover test
Virgin Australia has completed one of the largest corporate makeovers in Australian history. From bankruptcy five years ago, in a few weeks, investors large and small will get an opportunity to punt on its shares – to decide whether this is a quality reno or one with just a lick of paint and floorboard polishing. The vendors, private equity outfit Bain, will be handsomely rewarded, as will a handful of its senior management who could pocket tens of millions of dollars if the airline's hockey stick earnings forecasts are met. But what about the new band of shareholders who have been offered shares in the new public listing, or those who are thinking of buying into Virgin after it lists at the end of the month? Loading Investing in aviation has a long history of being at the riskier end of the spectrum. Airlines are especially sensitive to black swan events such as COVID-19 or 9/11, but they are also susceptible to changing industry dynamics such as new entrants, disruption in market share, or the health of the economy. In the 25 years since its launch as the cheeky disruptor airline funded by Richard Branson, Virgin Blue has had many corporate faces – not all of them attractive in an earnings sense. In a financial sense, the period in which it sought to clone Qantas was a speculator failure. But the common theme has been its position as a challenger to Australia's aviation queen – Qantas. Virgin Blue was born in 2000 as a low-cost airline that carved out a new market, tapping into price-sensitive leisure customers who could not afford to fly Qantas or its then-rival Ansett, which collapsed the following year.
AU Financial Review
4 hours ago
- AU Financial Review
Australian firms cash in on Europe's security crisis
Australian defence contractors are flocking to the United Kingdom and Europe for growth opportunities, hoping to grab a slice of billions of pounds and euros being pumped into building up their militaries in the face of Russian aggression and demands from US President Donald Trump. Since January 2022 – a month before Russia re-invaded Ukraine, triggering the Continent's arms race – 55 Australian defence suppliers have been awarded 277 contracts under the Defence Department's Global Supply Chain program, official figures obtained by The Australian Financial Review showed.
The Advertiser
4 hours ago
- The Advertiser
Volkswagen Group's first Australian EV hatch says adios for now
The Cupra Born is no longer on the company's Australian website, and Volkswagen Group Australia (VGA) confirmed the electric hatch is no longer on sale in Australia now that local stocks of the car have run dry. That said, the Born may not be away for too long. In March this year, Cupra said it was pushing back the launch the Born VZ hot hatch from May to December 2025. "Planning for the next evolution of the Born – including the performance VZ – continues," said VGA in a statement. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. With the Born gone from the local range, Cupra's only pure electric offering right now is the Tavascan SUV. The Born made its global debut in 2021, and was launched in Australia at the end of 2022. While the Born is available in Europe with a variety of motor and battery options, local models all come equipped with a 77kWh battery and a 170kW motor driving rear wheels. A 240kW/545Nm motor drives the rear wheels in the Born VZ currently sold in Europe. Under the skin, the Born uses the Volkswagen Group's MEB all-electric architecture, which underpins all of the German automaker's EVs apart from a few models from Audi and Porsche. The Born's closest relation is the Volkswagen ID.3 hatch, which is not sold here. Both cars share their drivetrains, overall silhouette, much of their underlying structure, and doors. From its launch in December 2022 to the end of May 2025, 1654 Borns have been sold in Australia. The Born's best sales performance was in 2023, its first full year on sale, when 887 found new homes. For this calendar year until the end of May, the Born (301) is Cupra's second-best selling model behind the Formentor SUV (686). In the broader EV context, the Born is well behind the market leaders: Tesla Model Y (6974), Model 3 (2583), and Kia EV5 (2212). But if we look at just electric hatchbacks, its performance isn't too bad. It's behind the MG 4 (2017), BYD Dolphin (776), and Hyundai Ioniq 5 (364), but ahead of the Kia EV6 (228), GWM Ora (271), Renault Megane E-Tech (138), and Nissan Leaf (62). We know this list includes an eclectic range of models across a variety of sizes and price points, some of which are marketed as SUVs, but pinning down price points can a little tricky as EV pricing tends to move around quite a bit. Priced at $59,990 before on-road costs since its local launch, the Born had been available for the last few months for $47,090 drive-away. MORE: Everything Cupra Born Content originally sourced from: The Cupra Born is no longer on the company's Australian website, and Volkswagen Group Australia (VGA) confirmed the electric hatch is no longer on sale in Australia now that local stocks of the car have run dry. That said, the Born may not be away for too long. In March this year, Cupra said it was pushing back the launch the Born VZ hot hatch from May to December 2025. "Planning for the next evolution of the Born – including the performance VZ – continues," said VGA in a statement. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. With the Born gone from the local range, Cupra's only pure electric offering right now is the Tavascan SUV. The Born made its global debut in 2021, and was launched in Australia at the end of 2022. While the Born is available in Europe with a variety of motor and battery options, local models all come equipped with a 77kWh battery and a 170kW motor driving rear wheels. A 240kW/545Nm motor drives the rear wheels in the Born VZ currently sold in Europe. Under the skin, the Born uses the Volkswagen Group's MEB all-electric architecture, which underpins all of the German automaker's EVs apart from a few models from Audi and Porsche. The Born's closest relation is the Volkswagen ID.3 hatch, which is not sold here. Both cars share their drivetrains, overall silhouette, much of their underlying structure, and doors. From its launch in December 2022 to the end of May 2025, 1654 Borns have been sold in Australia. The Born's best sales performance was in 2023, its first full year on sale, when 887 found new homes. For this calendar year until the end of May, the Born (301) is Cupra's second-best selling model behind the Formentor SUV (686). In the broader EV context, the Born is well behind the market leaders: Tesla Model Y (6974), Model 3 (2583), and Kia EV5 (2212). But if we look at just electric hatchbacks, its performance isn't too bad. It's behind the MG 4 (2017), BYD Dolphin (776), and Hyundai Ioniq 5 (364), but ahead of the Kia EV6 (228), GWM Ora (271), Renault Megane E-Tech (138), and Nissan Leaf (62). We know this list includes an eclectic range of models across a variety of sizes and price points, some of which are marketed as SUVs, but pinning down price points can a little tricky as EV pricing tends to move around quite a bit. Priced at $59,990 before on-road costs since its local launch, the Born had been available for the last few months for $47,090 drive-away. MORE: Everything Cupra Born Content originally sourced from: The Cupra Born is no longer on the company's Australian website, and Volkswagen Group Australia (VGA) confirmed the electric hatch is no longer on sale in Australia now that local stocks of the car have run dry. That said, the Born may not be away for too long. In March this year, Cupra said it was pushing back the launch the Born VZ hot hatch from May to December 2025. "Planning for the next evolution of the Born – including the performance VZ – continues," said VGA in a statement. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. With the Born gone from the local range, Cupra's only pure electric offering right now is the Tavascan SUV. The Born made its global debut in 2021, and was launched in Australia at the end of 2022. While the Born is available in Europe with a variety of motor and battery options, local models all come equipped with a 77kWh battery and a 170kW motor driving rear wheels. A 240kW/545Nm motor drives the rear wheels in the Born VZ currently sold in Europe. Under the skin, the Born uses the Volkswagen Group's MEB all-electric architecture, which underpins all of the German automaker's EVs apart from a few models from Audi and Porsche. The Born's closest relation is the Volkswagen ID.3 hatch, which is not sold here. Both cars share their drivetrains, overall silhouette, much of their underlying structure, and doors. From its launch in December 2022 to the end of May 2025, 1654 Borns have been sold in Australia. The Born's best sales performance was in 2023, its first full year on sale, when 887 found new homes. For this calendar year until the end of May, the Born (301) is Cupra's second-best selling model behind the Formentor SUV (686). In the broader EV context, the Born is well behind the market leaders: Tesla Model Y (6974), Model 3 (2583), and Kia EV5 (2212). But if we look at just electric hatchbacks, its performance isn't too bad. It's behind the MG 4 (2017), BYD Dolphin (776), and Hyundai Ioniq 5 (364), but ahead of the Kia EV6 (228), GWM Ora (271), Renault Megane E-Tech (138), and Nissan Leaf (62). We know this list includes an eclectic range of models across a variety of sizes and price points, some of which are marketed as SUVs, but pinning down price points can a little tricky as EV pricing tends to move around quite a bit. Priced at $59,990 before on-road costs since its local launch, the Born had been available for the last few months for $47,090 drive-away. MORE: Everything Cupra Born Content originally sourced from: The Cupra Born is no longer on the company's Australian website, and Volkswagen Group Australia (VGA) confirmed the electric hatch is no longer on sale in Australia now that local stocks of the car have run dry. That said, the Born may not be away for too long. In March this year, Cupra said it was pushing back the launch the Born VZ hot hatch from May to December 2025. "Planning for the next evolution of the Born – including the performance VZ – continues," said VGA in a statement. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. With the Born gone from the local range, Cupra's only pure electric offering right now is the Tavascan SUV. The Born made its global debut in 2021, and was launched in Australia at the end of 2022. While the Born is available in Europe with a variety of motor and battery options, local models all come equipped with a 77kWh battery and a 170kW motor driving rear wheels. A 240kW/545Nm motor drives the rear wheels in the Born VZ currently sold in Europe. Under the skin, the Born uses the Volkswagen Group's MEB all-electric architecture, which underpins all of the German automaker's EVs apart from a few models from Audi and Porsche. The Born's closest relation is the Volkswagen ID.3 hatch, which is not sold here. Both cars share their drivetrains, overall silhouette, much of their underlying structure, and doors. From its launch in December 2022 to the end of May 2025, 1654 Borns have been sold in Australia. The Born's best sales performance was in 2023, its first full year on sale, when 887 found new homes. For this calendar year until the end of May, the Born (301) is Cupra's second-best selling model behind the Formentor SUV (686). In the broader EV context, the Born is well behind the market leaders: Tesla Model Y (6974), Model 3 (2583), and Kia EV5 (2212). But if we look at just electric hatchbacks, its performance isn't too bad. It's behind the MG 4 (2017), BYD Dolphin (776), and Hyundai Ioniq 5 (364), but ahead of the Kia EV6 (228), GWM Ora (271), Renault Megane E-Tech (138), and Nissan Leaf (62). We know this list includes an eclectic range of models across a variety of sizes and price points, some of which are marketed as SUVs, but pinning down price points can a little tricky as EV pricing tends to move around quite a bit. Priced at $59,990 before on-road costs since its local launch, the Born had been available for the last few months for $47,090 drive-away. MORE: Everything Cupra Born Content originally sourced from:
