Ann: IOU Provides Mid Quarter BNPL Offering & Operations Update, page-103

Hugely positive update. New product offering, and significant growth across all areas. I think the high volumes cf with the amount of merchants on-boarded and customer downloads, shows that the B2B BNPL seems to be a very good addition.

If you extrapolate the growth out over the course of a year (although I can’t see us growing at circa 300+% for net transactions every month, but fingers crossed), and add in additional customers from Razer and in-store merchants, than IOU will likely be doing around $6-8mil a quarter by early-2022.

Depending on what ratio you place above the revenue, (APT was sold on the basis of a 40 multipler of its revenue), that should be good for a MC of 300mil, plus cash on a multiple of 10 x revenue. The purchase of APT on a 40 multipler though shows the potential that if you have a growing business, a multiplier of 10, 20, 30 etc is not out of reach.

We should also see by the end of the year the rollout into Indonesia. With vaccination rates increasing there and more openings, it is likely that this announcement will come sooner rather than later. I’m guessing Razer and others will be keen to also use IOU in Indo.

Even if the initial figures are low, being able to operate across two territories would be huge for the value of the business, as it will show that future growth could be significant.

With the commissioning of the DD report, I think something is at play behind the scenes (which may also explain the odd timing of this release). The buyout of APT has maybe made some of our competition aware that consolidation may be required, and IOU may be a prime target. Hopefully any investing into IOU is done at a premium, or at least no discounts given the upwards curve we are on.