IOUpay ~ Case Study
The Brand
IOUpay (ASX: IOU) provides fintech and digital commerce software solutions and services that enable its institutional customers to securely authenticate end-user customers and process banking, purchase and payment transactions.
The Company’s core technology platform enables large customer communities to connect to end user customers using any mobile device and integrate mobile technology throughout their existing business and customer product offerings. The Company’s business divisions consist of Mobile Banking, Digital Payments and Digital Services which service leading domestic and international banks in Malaysia and large telco’s and corporates in Malaysia & Indonesia.
Corporate Showcase
The Challenge
IOUpay (ASX:IOU) was first introduced to us in June 2020 as iSentric (ASX:ICU), a diversified digital services company operating in the South-east Asian Markets. We were impressed by the company's corporate vision, but realised that they still had a way to go before achieving their strategic goals. They required a large amount of capital to accelerate sales growth, expand their product capabilities and acquire additional market share, while there was also a lack of Australian presence for a ASX-listed company.
After conducting due-diligence, we recognised the potential of ICU’s market positioning, however the message to the market wasn’t as good as it could be. We could see they wanted to refine their business model to focus more on digital payments in the Malaysian market and add additional service offerings within the BNPL and consumer loans space. There was a clear vision of what they wanted to become, and we thought we could get behind that pivot and build a story.
Our Solution
To kickstart their growth, we raised a $1.5m Convertible Note (July 2020) across two tranches to fund product development and increase the company's sales capability. We then advised the company on the addition of an Australian Board member to strengthen the firm's Corporate Governance whilst adding considerable commercial, compliance and legal expertise. This was followed by a $4m Share Purchase plan (SPP) (August 2020) to fund further product growth and capitalise on the company's diverse shareholder base. We then raise $10m (November 2020) in an on-market placement to accelerate IOU's market position and the implement the rollout of its BNPL capabilities. With an appreciating share price, this transaction represented an excellent time to raise a large amount of growth capital without significantly diluting the company.
The Outcome
Since BPC was mandated, the company has experienced significant growth with its share price increasing by ~800%. Alongside this, company’s growth story has continued with its rebranding to IOUpay, refinement of its business model with a greater focus on digital payments and the rollout of its BNPL Capabilities.
Moving forward, we see IOUpay positioning itself as a major digital payments and fintech player in the relatively untapped South-east Asian markets.
800%
Increase in Share Price since mandated
$15.56M
Capital Raised for IOUpay
5
Corporate Transactions
"The strengthening of its balance sheet and the significant increase in share price highlight the company's commitment to its shareholders. This coupled with the strategic rebranding and the rollout of its Buy Now Pay Later capabilities place IOU in an excellent position to gain traction in the relatively untapped South-east Asian markets, as it looks to leverage its partnerships with local banks to build a broader consumer services offering."
Aran Anandakumar
Investment Analyst
Latest News
Want to learn more about digital payments and mobile banking as an investment? Read IOU's posts below!
%20Share%20Price%20Continues%20to%20Skyrocket.png "IOUPay (ASX- IOU) Share Price Continues to Skyrocket")
IOUpay Media Exposure
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