Established in 2008, Konnect is a provider of business process technology to the insurance, health and corporate sectors in New Zealand and Australia.
With this latest investment, Rangatira has this year committed around $5 million to five early-stage high-growth ventures. They are: online accounting software provider Xero ($800,000); life insurance provider Partners Live ($4.5 million); Valar Ventures investment fund ($1.5 million); Movac 3 investment fund ($2.5 million); and Konnect ($5.5 million).
Rangatira chief executive Ian Frame said Konnect had a range of proven business process solutions that had created strong interest both in New Zealand and abroad.
Konnect was seeking a long-term cornerstone investor to help fund ongoing growth.
Rangatira had a conditional undertaking to provide a further $2 million in follow-on capital in August next year. Mr Frame would join the board, and a further Rangatira director would be appointed next year.
Rangatira chairman Murray Gough said the early-stage investments were consistent with the investment company's overall strategy of investing in business for growth.
"They reflect our expectation that the strong New Zealand dollar will see a continued shift in the economy from manufacturing to services.
All of the investments are either New Zealand-based or funds that plan to invest in New Zealand companies."
Last year, Rangatira sold its interests in three investments it had held for long periods - Dunlop Living, Dunedin's Tecpak Industries and Te Kairanga Wines.
Funds realised from those sales were reinvested in the new opportunities, but Rangatira had about $20 million of funds available for further investment, he said.
Rangatira
Wellington-based investment company.
Established: 1937.
Assets: more than $150 million.
Owners: 51% by J.R. McKenzie Trust; 15% by other community and charitable organisations; balance by private investors.
