- The September quarter update is focused on the achievements and initiatives taken by IOUpay Limited during the three-month period.
- The quarter witnessed IOUpay undertaking various business activities including name and ticker change to reposition itself as a market leader in the SEA region in its key operational areas.
- The company secured A$3.6 million capital to be used for working capital and new product development initiatives.
Mobile banking and digital payments & services provider IOUpay Limited (ASX:IOU) has made significant strides in the recent past. The September quarter business update echoes its efforts towards repositioning the business as an established market leader in its core fintech business divisions in South East Asia (SEA).
- The Company rebranded itself by changing its name and expedited its business expansion target for its key market – the SEA region.
- It also undertook technological improvements and enhanced its payment processing platform to expand its product development opportunities.
- The management team experienced considerable changes with new appointments to gear up the growth initiatives.
- The Company secured funding from existing shareholders and investors.
IOUpay in the last days of October, released a corporate update and investor presentation informing the market about its strategic focus and objectives along with business activities and roadmap. The Company in its quarterly update highlighted that the market update and its new positioning have been well acknowledged by the broader market and the shareholders.
For a detailed discussion on the corporate update and investor presentation, please read Digital Transaction Processor IOUpay (ASX:IOU) to Spread Wings with Higher Value-Added Services.
Repositioning IOU as an established market leader through Name and ASX Code change
At the EGM held on 30 September, the Company received overwhelming support from its shareholders for the company name and ASX code change. Majority of the shareholders voted in favour of the company name being changed from Isentric Limited to IOUpay Limited and ASX ticker from ‘ICU’ to ‘IOU’.
The change in the name and the ticker was made to showcase the Company’s commitment towards repositioning itself as an established market leader in South East Asia in the core fintech space with a key focus on mobile banking and digital payments & services.
For prominent banks, insurers, telcos and leading corporates, the company processes and services digital purchase and payments and mobile banking in high volumes.
Business Expansion and New Service rollout
In July 2020, the Company performed a review of its existing business divisions with the opportunities anticipated in the local SEA market. After the review, it embarked a business expansion journey by propelling its growth opportunities via name change and technological upgrades.
The Company also introduced its latest offering - Buy Now Pay Later (BNPL) services, to be made initially available in Malaysia. With proven platform capabilities and commercial relationships with leading brands, the Company claims to be well-positioned to expedite its identified growth prospects in the flourishing Indonesian digital payments market.
Further Development of Technology Platform
During the September quarter, the IOUpay platform underwent several improvements and enhancements. The new enhanced platform enables mobile banking and digital payments to be originated, authenticated, and processed smoothly in the Indonesian market focused at B2B and B2C bill payment processing, prepaid inventory supply and sale, and portfolio and individual account reconciliation.
The Company is also developing and testing new platform modules for payment gateways and merchants to leverage the market opportunities in the online purchase and bill payment market of Indonesia.
New consumer modules include internal e-KYC admin allowing e-KYC sign in and paperless electronic authentication, account and tenure selection, BNPL payment creation and query status, and TAC one-time password requests and generation.
New platform modules for merchants include Merchant’s Mobile App modules and payment gateway modules that allow a wide range of payment administration along with customer on-boarding and BNPL transaction processing.
Executive Changes & New Appointments
The Company added new senior executives to its leadership team. Khong Kok Loong was appointed as CEO, Kenneth Kuan was appointed CFO and Lau Teck Huat was appointed as CTO for IOUpay’s Malaysian operations.
Secured A$3.6 Million Capital
IOUpay has successfully raised A$1.52 million from investors under two tranches. Moreover, the Company has secured A$2.1 million from existing shareholders via SPP in September. The proceeds will be used for working capital and supporting new product development initiatives.
Cashflow expected to be strengthened further in the following quarter
During the September quarter, IOUpay reported A$1.16 million as receipts from customers and a net operating cash flow of -A$792,000.
IOUpay finished the September quarter with A$2.8 million in cash and call deposits. The Company also stated that A$170,000 as “effect of Movement in exchange rates on cash held” is a book loss and not an actual cash loss.
The cash reserves and the balance sheet are expected to be further reinforced by operating and financing activities in the following quarter.
South East Asia has large underbanked populations. IOUpay expects that SEA will continue to experience an uptick in the digital purchase and payment volumes and values. The COVID-19 pandemic has boosted the requirement for online bill payments and e-commerce volumes considerably.
With a clear roadmap, the Company has an advanced commercial pipeline. With additional funding, enhanced market positioning, strengthened leadership team and new product development opportunities, IOUpay seems well-positioned to grow its mobile banking and digital payments businesses.
On 3 November 2020, IOU closed the trading session at A$0.185.