Business & Finance

O₂-e Invests $10m in Lleading Rural Internet Company, The Farmshed

May 1st, 2001

O₂-e Limited, the National Australia Bank's new economy business incubation subsidiary, announced today an investment of $10m in Australia’s leading rural Internet company, The Farmshed Ventures Pty Limited.

O₂-e will take a $10m stake in The Farmshed, joining existing investors JB Were, McKinsey & Company, Wesfarmers Landmark, Rural Press Limited and Kiwi Co-operative Dairies Limited.

As well as purchasing a 21% equity stake, the National through O₂-e has the opportunity to create a module on The Farmshed portal to offer a suite of online business and financial services tailored specifically for the agricultural sector. This will initially include e-procurement and the services provided within the National Business Toolkit.

O₂-e Managing Director Glenn Barnes said the investment was further evidence of the National delivering on its promise that O₂-e will enhance the Group's strategic position through taking a leadership role in the evolution of Internet-based financial services provision.

"This is a strategic investment which further strengthens the National’s already strong position in the agricultural sector," Mr Barnes said.

The National’s General Manager of Agribusiness Mike Carroll said the investment was further evidence of the bank’s commitment to the agricultural sector.

"Farmers have shown a high propensity to access the Internet. The National wants to ensure that we are there to develop the e-commerce services available to farmers on the Internet," Mr Carroll said.

For agribusiness customers it means access to an integrated online offering via The Farmshed.

"The National plans to offer a range of financial services through The Farmshed – some exclusively through this investment," Mr Carroll said.

Mike Pratt, Chief Executive Officer, Australian Financial Services for the National Australia Group and Director, The Farmshed said the deal indicated the bank’s strong commitment to e-commerce.

"The Farmshed is a growth investment. It has enjoyed enormous success in its short time in the market and we are confident that with the quality of its backers, The Farmshed is in a strong position to be the leading agribusiness portal," Mr Pratt said.

Farmshed Chief Executive Officer Angus Taylor said the investment by National Australia Bank underlined confidence in The Farmshed’s business model and future.

"We have developed an online business model that is sustainable and delivers value through a series of strategic partnerships," Mr Taylor said.

"The support of this icon company shows the confidence it has in The Farmshed’s clicks and mortar model that melds new technology with established industrial groups in agriculture to create the only true portal for the agricultural community."

Mr Taylor said The Farmshed had attracted 13,000 members in the six months since it went on line, and was growing at 1,000 members per month. More than 2,000 individual users visit the site each day.