Society Pass Incorporated (SoPa), Southeast Asia’s fastest growing loyalty and ecommerce ecosystem, announced that Maxim Group LLC (Maxim) has announced that they have initiated equity research of SoPa and published their initial Equity Research Report, dated February 24, 2022.
In its report, Maxim highlighted the following key growth drivers for SoPa:
– Large and growing South and Southeast Asia markets that are shifting towards digitalization
– Launch of Society Points in 2H22 which is high margin and should increase customer retention.
– Technology for data and loyalty programs should grow e-commerce.
– Relaunch of Leflair in 2H21, which is a top-five luxury ecommerce site in Vietnam. Leflair generated ~$9M in revenue in 2019.
– Grow merchant-related fees from partnership program, POS devices, software, and vendor finance offerings.
– Grow new customers through event marketing with strategic partners, digital/social media engagement, and joint marketing with merchants.
– Roll up smaller ecommerce-related companies. Opportunities are available at low multiples as target companies have fewer alternative forms of capital. Acquisition targets can generate revenue and expense synergies as part of the Society Pass ecosystem.
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Maxim also highlighted the successful track record of SoPa Chairman and CEO, Dennis Nguyen in building out and selling businesses in China and Southeast Asia.
Dennis Nguyen, CEO of Society Pass said “The publication of this report is another exciting milestone for Society Pass so soon after our IPO. Investors continue to have a positive view of the Southeast Asian investment opportunity and this report will bring greater awareness and understanding to the market of our plans to build Southeast Asia’s fastest growing ecommerce and loyalty ecosystem.”
– SoPa’s fast growing ecommerce ecosystem in SEA offers lifestyle, F&B, merchant payment software and loyalty programs
– The company was added to the Russell 2000 Index in December, 2021
– Growth drivers include the relaunch of the Leflair luxury site in Vietnam (1.5M+ registered users), a growing F&B merchant platform, a loyalty points program, and future M&A.
– SoPa’s current cash of US$33M and no debt are sufficient to fund M&A and organic growth plans for the next 3 years
– Maxim Group projects significant revenue growth from US$1M in 2021, to US$38M in 2023
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