Appen, an Australian AI firm, has announced that it is considering selling a part or all of its business. The company has not yet received any proposals for a deal but is open to engaging with potential counterparties.
In an effort to boost its working capital, Appen recently announced an equity raise of A$30 million and revealed an additional $14 million in cost reduction initiatives, bringing the total cost-saving efforts this year to $60 million. Despite these efforts, the company’s revenue and gross profit for the 10 months ending October 31, 2023 declined by over 29% and 32% to $223 million and $80 million, respectively.
The financial challenges faced by Appen may be driving its willingness to consider a sale or partnership. However, the company appears to be taking proactive steps to address its financial situation and explore potential opportunities for growth.