Combination of GoLogiq’s product offering with GammaRey and Nest Egg to create a uniquely powerful mobile fintech ecosystem for global markets:
- High margin offerings: eWallet, microlending, and hyper-local delivery platforms can potentially add upwards of 30% gross profit margins at scale.
- Leverages market-proven Tech Mahindra (TECHM.IN), Comviva eWallet and YABX technology.
- Greater ability to empower millions of customers with new financial options and process tens of millions of transactions daily.
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GoLogiq, Inc. a U.S.-based global provider of fintech and consumer data analytics, recently finalized a definitive share exchange agreement with GammaRey, a privately-held fintech ecosystem for the New World Digital Economy.
Under the agreement, GoLogiq plans to issue $320 million in common stock valued at $3.00 per share in exchange for 100% of GammaRey’s outstanding shares. GammaRey brings to GoLogiq a profitable business with strong cash flow, along with nearly $800 million in customer financial assets.
GoLogiq also recently announced a binding letter of intent to acquire Nest Egg Investments, under a similar definitive share exchange agreement that is expected to be finalized within the next week.
Nest Egg brings to GoLogiq a streamlined mobile solution for discovering, planning, and automating retirement savings, with investment products and services offered by its subsidiary, BeyondTrade Securities (pending a name change to Nest Egg Securities), a FINRA licensed broker dealer.
The synergies created through the combination of GammaRey and Nest Egg will enable GoLogiq to address the growing multi-billion dollar market of wealth management for Generation Z and Millennials. This new generation of wealth-builders represents the sharing economy that will be powered by digital banking solutions, such as virtual payments, lending and loyalty program—all which will now be easily accessible and managed by a single, easy-to-use mobile application or embedded finance platform.
Millennial and Gen Z financial wealth reportedly jumped 25% last year—higher than for Gen Xs and Baby Boomers—and their aggregate assets grew from $2.9 trillion to $3.6 trillion. Bain & Company projects the market for wealth management services to double in size and exceed $500 billion by 2030.
GoLogiq’s existing mobile finance offering is built upon the proven Tech Mahindra/Comviva mobiquity® Pay platform that currently serves more than 130 million customers in more than 45 countries. GoLogiq’s microlending app is powered by the Tech Mahindra/YABX platform that allows it to offer micro and small consumer loans, agent loans, handset loans and Airtime credits to customers in emerging markets.
GoLogiq’s ‘hyper-local’ delivery platform was built in-house over two years. Test markets in Jakarta, Indonesia had more than 150,000 customers generating 15,000 deliveries per day. In February 2020, a pilot program was also run with SEA, Ltd (NYSE: SE) involving shared deliveries in the central business district of Jakarta.
GoLogiq anticipates the straightforward integration of its eWallet and a microlending platform with Nest Egg’s customer base to create a strong cash flowing business. Given recent GoLogiq initiatives in SE Asia, it anticipates adding incremental gross profit margins upwards of 30% once fully deployed. The hyper-local delivery platform will be combined with another project that will involve a new target demographic in populous urban areas.
According to Brent Suen, interim CEO of GoLoqiq, stated: “The strategic tie-in of GoLogiq’s product offerings with GammaRey and Nest Egg will create valuable financial services offerings for Gen Z and Millennial customers in the U.S., Middle East and Australia. We’re looking forward to launching the new Nest Egg offering over the next few months and integrating in our eWallet and microlending apps to address these high-growth markets.”
GoLogiq has begun the application process for an uplisting to a listed exchange such as the NYSE/AMEX. The application is subject to approval based on several factors, including satisfaction of minimum listing requirements.
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