IPO Watch: Robocash plans to test investor appetite for listed fintechs with $100m December listing
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Singapore-headquartered consumer finance platform Robocash has tapped local investors for capital, ahead of plans to list on the ASX later this year.
The company officially announced a $7.5m pre-IPO funding round today, managed by KTM Capital and Foster Stockbroking.
Initially founded in Russia, Robocash says its micro-finance consumer lending platform has a customer base of more than 10 million people.
The company’s pitch deck said it’s targeting revenues of almost $US200m (~$285m) in the 2020 financial year, derived from the issuance of more than 4.2 million loans.
With stronger margins stemming from streamlined internal processes developed as a result of the COVID-19 disruption, it reckons net profit will increase from $US17.3m in 2019 to $US28.4m in 2020.
Robocash says its consumer finance platform serves markets across multiple jurisdictions including Russia, Spain, India and the Philippines.
Now, it’s targeting a move into digital banking with the in-house development of Una Bank. And if local institutional investors help it reach the $7.5m target, Robocash says it will deploy the funds in connection with an application for a banking licence in the Phillipines.
Discussing the move, CEO Sergey Sedov said that of the Filipino population with access to the internet, 95 per cent use smartphones but only 37 per cent use banking apps.
In view of that, Sedov said Robocash expected to have “40,000 active cardholders in a few months after our online bank goes live in the Philippines”.
Along with its push into digital banking, Robocash also plans to test the local market’s appetite for fintech stocks with plans to list on the ASX this December.
The company says it expects to raise $100m from the float, implying a market capitalisation of $500m.
Robocash says it will use proceeds of the float to “support the further development of the online bank and accelerate expansion into existing and new markets in Asia”.