Mobile payments company Peppermint Innovation gets set to relist into a red-hot fintech market
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The company’s re-listing comes at the perfect time as it scales up in its core market.
Fintech company Peppermint Innovation (ASX:PIL) is focused on scaling up its Asia-based payments platform as it prepares to re-join the ASX boards today.
The re-listing caps off a busy 18 months for the company, which has been growing revenues in its core market of the Philippines via its bizmoto platform.
The Bizmoto mobile app is a micro-enterprise solution that targets four key business sectors — mobile payments, ecommerce, delivery and logistics, and mobile financial services.
Peppermint is targeting an expanded market opportunity in the Philippines, which has a population of 108 million people – the majority of whom don’t have access to simple banking and financial services.
Speaking with Stockhead ahead of the re-listing, managing director Chris Kain said despite difficult market conditions, PIL’s bizmoto platform posted strong revenue growth throughout the 2020 year.
“From FY19 to FY20 we’ve seen significant growth in our business operations, with cash receipts up more than 300 per cent,” Kain said.
“And throughout 2020 our cash receipts increased across almost every quarter, despite the company being in ( a ASX trading) suspension and constrained in terms of the level of capital that we could direct towards our sales and marketing efforts.”
“So although it’s been challenging we’ve continued to grow the business with limited capital resources.”
“I’m now really excited that we have raised A$2.5 million and we can start trading again on the ASX boards.”
At the heart of PIL’s strategy is the development of a “microenterprise platform”, Kain said.
“It’s a turnkey solution for people to pick up quickly and easily. Once they’re registered on the bizmoto platform, they can use it for a range of different business solutions.”
Along with payments and transaction services, the company is seeking to receive approval as a registered lender in the Philippines market by the middle of this year.
Through a combination of lending, payments and ecommerce channels, the bizmoto platform is a ‘one-stop shop’ for mobile payments and lifestyle transactions.
And the early focus will be on bringing more registered bizmoto agents to the platform and building partnerships with ecommerce channels.
“Stage one is to establish a micro finance program to enable our growing network of registered bizmoto agents that use our platform to deliver financial inclusive services to their local communities,” Kain said.
“Stage two will be collaborations with strategic partners, such as ecommerce sites, to be one of their providers of choice for funding customers, that aid and facilitate the growth in the bizmoto platform.”
“More broadly, the whole focus is about financial inclusion,” Kain said.
“Our microfinance and financial services arm will be an evolution of where we’re moving towards in terms of a model that helps build financial inclusion and deliver social good.”
With the $2.5 million placement in place, the company will re-join the boards in the midst of a red-hot fintech market, which has seen other payments companies complete recent share placements at significant premiums to their 12-month weighted average price.
“We’ve been capital constrained, but on a like for like basis as a mobile payments company I think we’re significantly undervalued,” Kain said.
“You could pick out any other company associated with what we do and they’d be five or six times our value.
“The mobile ‘super-app’ concept in south-east Asia is a well-known one. We’ve got a staff count of more than 15 in the Philippines now and the relisting comes at the ideal time for us to expand into that market.”
This article was developed in collaboration with Peppermint Innovation, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.