I can't remember which poster it was, but someone here once...

I can't remember which poster it was, but someone here once argued that IOU could have got $4mil per year by drawing down on the $40 mil cash in hand, instead of being given $4mil profit every year from IDSB

The problem with that argument was that in 10 years you would have $0.

With IOU's investment, over 10 years not only will they have $40mil in the bank, but they will have an investment likely worth well north of $40mil....the good thing with the investment is that the valuation does not just get impaired automatically, only if the business's revenue/profit falls. And that does not look like happening soon.

It's simple math, but some seem to confuse themselves.

You can't put a PPI or BNPL valuation/multiplier on the IDSB revenue. I am sure IOU and its external advisors did their DD and decided $42mil was the price to pay - and definitely more research than HC posters. With each day passing and pure BNPL companies struggling, I think the decision to become a definitive fintech company rather than just BNPL will prove right in 2022 onwards.