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Highlights:
- Long-Term Partnership: Ovanti (OVT) enters a 20-year licensing agreement with BNPLPay Protocol.
- Enhanced Capital Access: Provides access to stablecoin-backed funding at lower interest rates.
- Revenue Sharing Advantage: Ovanti to receive 50% of BNPLPay Protocol’s revenue for two decades.
Ovanti (ASX:OVT) has entered a landmark 20-year licensing agreement with blockchain-based lending platform BNPLPay Protocol, securing a cost-efficient financing route for its future growth in the Buy Now, Pay Later (BNPL) sector.
The partnership grants Ovanti preferential access to BNPLPay Protocol’s decentralized finance network, offering a new funding model that connects stablecoin investors with BNPL providers. This move is set to address longstanding funding challenges by reducing capital costs and eliminating traditional lending restrictions.
A Strategic Shift in Funding Approach
Ovanti’s executive chair and interim CEO, Daler Fayziev, emphasized that traditional lenders have historically imposed high-interest rates and stringent financing terms, which have posed challenges in sustaining growth.
“Banks and non-crypto lenders typically require first-loss capital contributions and offer funding at less favorable terms,” he stated. “This agreement not only secures a low-cost capital source but also enables Ovanti to participate in BNPLPay Protocol’s revenue stream.”
With this arrangement, Ovanti gains access to stablecoin-backed lenders at significantly lower interest rates, bypassing the conventional hurdles of traditional banking institutions. Furthermore, the company is not required to contribute any first-loss capital to utilize BNPLPay’s funding, making this a more flexible and scalable financing model.
Revenue-Sharing & Ecosystem Integration
Beyond securing funding, Ovanti will play an integral role within the BNPLPay Protocol ecosystem. As part of the agreement, Ovanti will receive 50% of BNPLPay’s revenues over the 20-year period, ensuring a mutually beneficial collaboration.
“This long-term agreement establishes Ovanti as both a key user and strategic partner of BNPLPay Protocol, reinforcing a deep business alignment,” Fayziev noted.
By leveraging BNPLPay’s decentralized lending framework, Ovanti stands to benefit from a diversified funding source without reliance on traditional financial institutions.
Financial Details & Share Placement
The licensing agreement is valued at $2.39 million, with Ovanti securing the acquisition through a capital raise of approximately $1.5 million.
This placement involves issuing 235 million shares at $0.00655 per share to sophisticated investors, alongside an additional 135 million shares issued at the same price to BNPLPay Protocol.
With this agreement in place, Ovanti is set to strengthen its position in the BNPL space, leveraging blockchain-driven financing solutions to drive long-term expansion.
