As the year draws to a close and upon a thorough reflection on my investment portfolio, Spenda emerges as a noteworthy entity for several compelling reasons.
Despite its current status of not yet achieving positive cash flow, Spenda demonstrates a proactive trajectory through the establishment of strategic partnerships with prominent enterprises. The alignment with substantial businesses serves to validate the attractiveness of Spenda's offerings in the market, positioning it as a formidable player.
While the company has not yet attained cash flow positivity, the strategic collaborations forged in 2023 are pivotal milestones that hold the potential to significantly impact Spenda's financial trajectory in the foreseeable future. These partnerships with sizable businesses not only enhance Spenda's credibility but are anticipated to generate increased business volume, ultimately steering the company towards positive cash flow
Here are my personal favourites highlights from 2023: Strategic Investment in FSCO (06 February 2023)- Spenda invests $1.025m for a 4% equity interest in FSCO to support its Agribusiness Strategy.
- A specialized Agri-instance of Spenda's software is set to release for faster payments to primary producers, leveraging FSCO's networks.
Non-Deal Roadshow in Singapore and Hong Kong (27 March 2023)- Spenda conducts a roadshow to increase awareness of its unique product offerings in Singapore, Hong Kong, and wider Asia.
Expansion of Relationship with Capricorn into eCommerce (16 May 2023)- Capricorn selects Spenda as its preferred supplier for its Digital Service Delivery initiative.
- Spenda to provide services under a contract, including the first phase of CAPCharge to Capricorn’s Member and Supplier network
Private Placement Raises $3.9m (13 June 2023)- Spenda successfully raises $3.9m through private placement from institutional and sophisticated investors.
- Funds to be used for first loss capital, product development, and general working capital requirement
Lending and Payments Volumes Update (28 June 2023)- Additional $2m drawn from the debt warehouse facility, representing a 73% increase.
- Annual Recurring Revenue expected to be $462k based on a current yield of 21%.
- Payments volume for April and May 2023 totals $27.2m.
Spenda Platform Rolled Out to Carpet Court Store Network (10 July 2023)- CC Spenda Platform successfully deployed across Carpet Court’s 205 franchised stores.
- Exclusive five-year agreement signed for Spenda to provide working capital finance to Carpet Court’s stores.
Capricorn DSD Initiative Market Update (31 August 2023)- Foundational phase of the Capricorn DSD initiative successfully completed.
- Negotiations ongoing for a new Master Services and Licensing Agreement.
Spenda PayFac Services Launch (18 September 2023)- Spenda completes development and launches its Payment Facilitator merchant payment services.
- Estimated $1m in new Annual Recurring Revenue from initial implementations.
Entry into Agricultural Vertical through AgriChain Partnership (16 October 2023)- Spenda and AgriChain integrate early payment services for grain growers.
- Expected initial revenue of up to $1.1m with plans to scale up in Q1 2024.
Binding Term Sheet for 10-Year Service Agreement with Capricorn (17 October 2023)- Spenda signs a term sheet for a 10-year service agreement with Capricorn, including agreed cornerstone investment terms.
- Capricorn may subscribe for up to 9.97% of Spenda’s share capital, subject to conditions.
Completion of Capricorn DSD Initiative (19 December 2023)- Successful completion of the final phase of the DSD initiative with Capricorn.
- Commercial launch of payment solutions expected in 2H FY24.
Signing of 10-Year Master Services and License Agreement with Capricorn (22 December 2023)- Spenda signs a 10-year MSLA with Capricorn for software and ecommerce payments infrastructure.
- Minimum revenue expectation of $2m in 2024, with a 5+5 year option for a longer-term partnership.
Partnership with eBev for Integrated Payments Solutions (27 December 2023)- Spenda partners with eBev to offer integrated payments solutions across the hospitality supply chain.
- First phase rollout to 100 initial clients, with potential annualized revenue of $800k upon successful completion.
The year 2023 showcases Spenda's strategic investments, expanded relationships, successful fundraising, and promising partnerships across various industries, positioning the company for sustained growth in the upcoming years.
They say actions speak louder than words. Well, it is great to finally see some action coming from Spenda. And when you look at all the progress they have made in 2023 in one place like this, I am confident that there will be much much more actioning coming in 2024 and beyond.
Wishing everyone a safe new years!
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