DXN Limited

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With the support of Export Finance Australia, the team at DXN Limited (DXN) is continuing to achieve its vision of “Making global local”.

DXN is a vertically integrated business, operating local data centres in Sydney and Hobart. As specialists in building, designing and commissioning prefabricated modular data centres, the team works with businesses across a variety of sectors, both nationally and internationally.

Bespoke solutions, shaped around the unique needs of customers, have seen the demand for DXN’s services grow significantly and its customer base now includes some of the globe’s leading mining companies, as well as a number of subsea cable companies.

Securing finance as an emerging business
DXN is an ASX listed company and not long after listing in 2018, began exporting modular data centres from their manufacturing facility in Perth Western Australia.

To support the upfront costs to deliver four critical communication infrastructure module projects across the Pacific, DXN needed additional working capital. This support was crucial to close cashflow gaps during the time between the building process and receiving payment from customers.

While the bank was able to provide finance to support the building of assets based in Australia, it was unable to finance overseas assets while DXN was still in the pre-profitability stage.

Export Finance Australia was recommended by DXN’s debt advisors who facilitated an introduction between Greg Blenkiron, CFO at DXN and the WA Business Development team at Export Finance Australia, to come up with a solution.

“Their passion for scale-ups was really refreshing for us,” Greg highlighted. “It was fantastic working with them, and it is good to have an ally in Export Finance Australia.”

As a capital-constrained business, particularly on the manufacturing side, Greg explained that they were too early in the scale-up phase for commercial banks.

There wasn't a way forward with our incumbent funder and other finances were too high risk due to covenants and conditions. Export Finance Australia was able to come in and support us when others wouldn't. So, their support was critical.

Greg Blenkiron, CFO, DXN Limited

Building a relationship with Export Finance Australia
The relationship with Export Finance Australia has not only provided crucial financial support to DXN for working capital to meet key milestones, but it has also opened doors to new opportunities.

Matthew Madden, CEO at DXN highlighted that on the global stage, having the badge of the Australian Government’s ECA behind DXN during its export journey played a key role in securing further export contracts.

“Having the support of Export Finance Australia behind a company that exports manufactured goods from Australia, is impressive,” Matthew said. “I really wanted to have a solid relationship with Export Finance Australia, and I wanted to know how we can grow and improve the relationship into a key partnership.”

Planning for further growth
Opportunities for DXN look promising and Matthew envisions the business playing a key role in supporting developing countries to build reliable internet infrastructure. “There is a massive shortfall of critical communications infrastructure in our own backyard that needs to be built, and that's where DXN will play a role.”

Matthew expects that DXN’s presence is going to expand in Southeast Asia dramatically. “We will be in markets that we've never been in before. Malaysia, Thailand, Vietnam, Laos, Cambodia. These are markets that have high infrastructure demand for internet and communications services, and they need rapid deployment of that infrastructure. DXN will be able to support their requirements with its high-quality prefabricated solution that can be exported to site.” He also believes that once we see recovery around the globe following the COVID-19 pandemic, Africa will be a key area for expansion.