Dubber (ASX:DUB) said on Wednesday it had received firm commitments to raise the $22 million via a placement to institutional and sophisticated investors, and the issue of 29,333,333 shares at $0.75 per share.

Dubber says the placement is expected to be completed in five business days. Morgans Corporate acted as lead manager to the placement.

Just six months ago, in November 2018,  Dubber completed a $5 million capital raising and said the funds would be used to meet increasing demand for its services, and for further development of the business.

On its business plans, Dubber says it has existing agreements with 92 telecommunications service providers (as at December 31, 2018), and is seeing “strong demand” for its products as service providers seek to provide feature “rich offerings, standardised across multiple networks”. 

Dubber says it will drive growth through existing 92 telecommunications carriers.

“The company has potentially a long-tail of growth, with currently 35 of 92 service providers at billing stage, the greater majority still being embryonic in terms of revenue development,” Dubber notes.

And Dubber says it has a further 57 contracted service providers at various stages of deployment and this number is expected to continue to grow, expanding the global footprint for opportunity.

“The company expects to be able to drive further uptake and in turn long-term valuable recurring revenue from its existing relationships.”

Commenting on the successful capital raising, Dubber chief executive Steve McGovern said: “This is a significant milestone for Dubber, following strong growth across our key metrics”.

“We have a number of opportunities in which we will now invest in, to ensure that growth is accelerated and that we consolidate and expand our market leading position as a cloud platform designed for telecommunications service providers.

“Fundamentally, the company believes that call recording is a service which a customer should be able to switch on immediately, without any technical or capital barriers as part of a standard phone service. We also believe that every phone should, and will, have the capability for artificial intelligence offerings, served directly from the network, to facilitate enhanced user experiences and business outcomes.”

According to McGovern, Dubber has a “unique advantage through its operating leverage, that to date, has allowed us to service the largest carriers in the world, in a number of different continents, with less than 60 employees”.

“We are truly excited to now invest in the next stage of growth to ensure that we become the de-facto industry solution in our market.”