IOUpay in sweet spot: Terrific 2021 paves way for brighter days ahead

Be the First to Comment Read
Sponsored

IOUpay in sweet spot: Terrific 2021 paves way for brighter days ahead

More on:
IOU growth amid favourable outlook
Image source: © Denisismagilov | Megapixl.com

Highlights

  • With several favourable factors in place, the SEA region indicates a significant growth opportunity for IOU.
  • From launching its BNPL offering to establishing a set of significant partnerships, IOU delivered a great show in 2021.
  • Recently, IOUpay made the payment for the first tranche of a deal to acquire a non-controlling share in IDSB.
  • IOU remains optimistic about the strong outlook for its business with anticipated growth in transaction levels in future.

The year 2021 saw IOUpay Limited (ASX:IOU) make giant strides towards its goal of emerging as a leading digital transaction processor in the booming cashless economies of South East Asia (SEA).

The high-growth fintech company strengthened its market position with the launch of its BNPL offering, capital raising programs, and several partnerships, delivering a great show in 2021. One of the major highlights of the action-packed year was the acquisition of a major stake in a Malaysian finance business.

RELATED ARTICLE: Here’s the latest update on IOUpay’s investment in Malaysian finance business

Strategic deal to snap up 42% stake in IDSB

During the second half of 2021, IOU signed a deal to acquire a 42% interest in a leading provider of long-term instalment-based consumer credit services in Malaysia, I.Destinasi Sdn Bhd (IDSB).

The deal offers various synergies as the business of IDSB is complementary with IOU, offering prospective collaboration opportunities for cross-selling between the products of both parties.

Acquisition synergies

Source: IOU Announcement 09/09/21

RELATED ARTICLE: IOUpay (ASX:IOU) invests $41.3M to acquire 42% stake in Malaysian finance business

Recently, IOU met all conditions precedent and completed the first tranche of its investment in IDSB under the deal. The payment worth around AU$20.7 million represents 50% of the purchase price and has been funded from the existing cash holdings.

The total transaction involves the purchase price of approximately AU$41.3 million for the acquisition of a 42% share in IDSB.

Strong uptake of BNPL service - myIOU

Since the launch of its flagship BNPL service offering, myIOU, the Company has observed an increased uptake of the service. 

In the first half of the December Quarter (1 Oct to 14 Nov), total transaction value stood at AU$3,189,092. Moreover, net transaction revenues reached AU$306,616.

Moreover, over 100 merchants operating more than 300 outlets around Malaysia were added to the myIOU platform during the reported period.

RELATED ARTICLE: Strong uptake of BNPL offering accelerates IOUpay (ASX:IOU) growth in first half of Q4

SEA - A land of opportunity for IOU

The SEA market indicates a significant opportunity for IOU’s growth and expansion with a 655 million-strong population, of which there are 150 million active e-commerce users. These users have grown by around 206% since 2015.

Moreover, the internet economy in the SEA region was believed to be worth hundreds of billions of dollars in 2019 and is forecast to grow multi-folds by 2025.

IOU also looks to capitalise on the opportunity presented by the significant unbanked population of the country.

RELATED ARTICLE: Recent masterstrokes steering BNPL player IOUpay (ASX:IOU) on fast growth track

SEA adult population

Source: IOU presentation 16/03/21

The SEA region is further believed to be the sweet spot for BNPL due to the lack of consumer credit and significant underbanked populations. This is further backed by the fast growth in e-payments, which supports BNPL offerings and adoption rates.

Bright outlook for IOU

IOU has been continuously focusing on achieving its growth and quality objectives through consistently building its network of big brand merchants, enhancing offerings, engaging customers, etc. The Company has crafted its best-in-class SEA positioning over the years along with growth in business volumes.

business growth

Source: © Designer491 | Megapixl.com

RELATED ARTICLE:  IOUpay (ASX:IOU) in sweet spot with firm footing in BNPL space

Additionally, IOU expects its investment in IDSB to complement its growth prospects and outlook for strong financial growth. The Company stands to reap benefits from cross-marketing and customer acquisition opportunities and potential for upcoming dividends.

IOU shares were trading at AU$0.160 midday on 22 December 2021.

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK