The Mydeal.ComAu Pty Ltd (ASX: MYD) share price has been a positive performer on Wednesday.
In morning trade the ecommerce company's shares were up almost 7% to $1.45.
Why is the MyDeal share price charging higher?
Investors have been buying MyDeal shares today following the release of an update on its performance during the second quarter of FY 2021.
According to the release, the company had a strong finish to the year, with second quarter gross sales increasing 165% on the prior corresponding period to $70.1 million.
This led to MyDeal's first half gross sales increasing 217% over the same period last year to $126.7 million.
At the end of the period, the company had a strong balance sheet with cash on hand of $48.1 million.
What were the drivers of its growth?
MyDeal's CEO, Sean Senvirtne, revealed that its grow was underpinned by strong customer growth and repeat use by existing customers.
He commented: "We are extremely pleased with the results. The strength in cash receipts during the quarter reflects the continued growth of the business, driven by an increase in active customers to a record 813,764, and transactions from returning customers representing 52.7% of total transaction (up from 49.7% in Q1)."
Mr Senvirtne also advised that the company has been executing on its growth strategy and expects the launch of mobile apps to support its growth in the second half and onwards.
"Since listing, we have been executing on our growth strategy by continuing to invest in our technology, marketing, and private label. Our mobile apps for iOS and Android remain on track for launch in H2 FY21, and we expect this to be a key driver of growth in the future. Our private label product range continues to grow and is expected to more than double in H2 FY21," he added.
The MyDeal share price is now up 45% from its October listing price of $1.00.
