There are numerous errors on page 8 of the investor presentation with the combined metrics graphs.
- Buyers 607% YOY mentioned but is actually 2250 / 500 = 350% YOY from graph - Sellers 322% YOY as per graph - Revenue 602% YOY mentioned but is actually $3M / $0.5M = 500% YOY from graph - GMV 862% YOY mentioned but is actually $4.2M / $2.1M = 100% YOY from graph
Maybe confusing YOY growth with CAGR.
Kaddy GVM was flat during Q2 FY22 & Q3 FY22 during lockdowns whereas DW8 did very well. Maybe Kaddy approached DW8 to acquire them in leau of an IPO as they have been affected by lockdowns again this year.
There has also been no mention of Kaddy's revenue & percentage fees only the $18M GMV. From the combined metrics graph it appears that Kaddy revenue is about $225k per quarter x 4 = $900k / $18M GMV = 5% fees is half of Windepot's 10% fees.
The Top 20 will increase from 25.33% to about 45%+ after the acquisition is completed. The founders/employees will hold about 20.5% with another 5% held by current Kaddy independent holders. They are heavily invested so will perform at their peak.
eBev have Asahi, TWE, CUB, Pernod Ricard, Negociants, Lion, Moet, Coca Cola, ALM etc as suppliers.
Should only be a matter of time now before they become DW8 suppliers.
With eBev planning to IPO next year it would be better for DW8 to acquire them now rather than compete with them. eBev have 65,000+ products, 700+ suppliers & $154M GMV.
$154M GMV x 5% fees = $7.7M revenue x 38 similar to Kaddy = $292.6M. Maybe IPO's for $7.7M x 20 = $154M & DW8 can acquire it prior.
If DW8 SP can climb to about 20c during next 6 months & they raise at about 17c will require 905.9M new shares + 2.63B DW8 fully diluted = 3.535B or about 25.6% dilution. They can consolidate the shares on issue at the same time 5:1 to end up with 707M shares on issue.
Will then have 75,000+ products, 1,800+ suppliers & approaching a combined $200M GMV. Revenue will be circa $30M+ pa with about $10M+ pa being all gross profit from trading fees. If they can make 20% margin on $20M logistics revenue = $4M for a total of $14M gross profit that will result in break even or a small surplus.
Will then be ready to commence international expansion.
DW8 Price at posting:
6.1¢ Sentiment: Buy Disclosure: Held
(20min delay)