Investor Benefits from Ovanti’s $100 Million Debt Capital...

Investor Benefits from Ovanti’s $100 Million Debt Capital Deal

Ovanti Limited’s (ASX: OVT) recent partnership with BNPLPay Protocol is not just a strategic win for the company—it also offers significant benefits to investors. By securing $100 million in debt capital at lower interest rates and a 50% revenue share from BNPLPay, Ovanti is strengthening its financial position and creating long-term shareholder value.

Key Investor Benefits:

1. Lower Cost of Capital = Higher Profit Margins

• Traditional BNPL financing costs over 15% per year, while BNPLPay’s decentralized lending model offers funding at rates 30-40% lower.
• This directly improves Ovanti’s profit margins, as less revenue will be consumed by financing expenses.
• Investors benefit from higher net earnings and stronger financial stability.

2. $100 Million in Funding Secures Future Growth

• Access to $100 million in debt capital ensures Ovanti has the liquidity needed to scale its BNPL operations.
• This removes concerns about Ovanti needing to raise expensive debt or dilute shareholders further.
• Investors gain confidence in the company’s growth trajectory without excessive financial risk.

3. 50% Revenue Share from BNPLPay = Recurring Income

• Ovanti earns 50% of all BNPLPay Protocol revenues for 20 years.
• This creates a new, recurring income streamindependent of Ovanti’s BNPL lending business.
• Investors benefit from diversified revenue sources that reduce reliance on core BNPL operations.

4. Stronger Position in the U.S. Market = Potential Stock Price Growth

• Ovanti’s low-cost funding advantage makes it more competitive in the U.S. BNPL market, where access to affordable capital is crucial.
• Expansion into the U.S. means higher revenues and potential stock appreciation.
• Investors stand to gain from both revenue growth and potential valuation increases.

5. Reduced Risk with No First-Loss Capital Requirement

• Unlike traditional lending, Ovanti is not required to provide first-loss capital, which means it does not have to tie up funds as a risk buffer.
• This lowers financial risk and allows Ovanti to use its capital for expansion rather than risk reserves.
• Investors benefit from a safer, more capital-efficient business model.

6. Increased Institutional Investor Confidence

• Securing $100 million in capital from BNPLPay Protocol signals financial stability to the market.
• This could attract more institutional investors, leading to higher demand for Ovanti shares.

Summary: A High-Growth, Low-Risk Opportunity for Investors

With $100 million in secured funding, lower borrowing costs, a new 50% revenue share, and a strong U.S. expansion plan, Ovanti’s long-term outlook is highly favorable for investors. The deal reduces financial risk while increasing potential returns, making Ovanti an attractive investment in the BNPL and fintech space.