Business Name: Sign NDA at https://fih.com/listing/7364519 to view
Business Start Date: 30/08/2020
Business Location: Kuala Lumpur, Malaysia
Business Valuation: $175,000 USD
Employee Number (Inc. Owners): 3
Business Model: Payment Processing, Revenue-Sharing
Industry: Buy-Now-Pay-Later, Fintech
Percentage Being Sold: 100%
GMV (TTM): $2,729,398
Net Revenue (TTM): $1,213,928.75
Net Profit (TTM): $9,850.18
Business Multiple (TTM Revenue): 0.14x
Registered Customers (Total): 56,525+
Registered Merchants (Total): 1,657+
Tag Line: 4 Y/O Buy-Now-Pay-Later Fintech Platform Malaysian eCommerce

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1. Executive Summary

[Redacted Company Name], founded in August 2020, is a fintech company based in [Redacted Location]. It operates in the growing Buy Now, Pay Later (BNPL) sector, offering payment processing and revenue-sharing services. The company achieved a Gross Merchandise Volume (GMV) of $2,729,398 over the trailing twelve months (TTM) with a net revenue of $1,213,928.75 and a net profit of $9,850.18. With a user base of 56,525 registered customers and 1,657 merchants, [Redacted Company Name] is a valuable acquisition opportunity in the BNPL industry.

2. Investment Highlights

• Strategic Market Position: Positioned within a rapidly growing BNPL market valued at MYR 6.2 billion in transaction volume.

• Reduced Competition: As market entry barriers have risen, only a handful of competitors remain, creating a unique expansion opportunity.

• Established Partnerships: Partnerships with local and international payment processors streamline operations and improve customer experience.

• Scalability and Growth Potential: [Redacted Company Name] is poised for rapid regional expansion, with a robust tech infrastructure and strong partnerships.

3. Company Background

Founded by three entrepreneurs, [Redacted Company Name] was launched in 2020. Initially, the company navigated high competition but has since benefited from a consolidation in the market. This environment positions [Redacted Company Name] for significant growth.

4. Business Model and Revenue Sources

[Redacted Company Name] offers a BNPL solution integrated into merchants' point-of-sale (POS) systems, allowing consumers to make purchases and spread payments over three installments. Revenue is derived from:

• Merchant Fees: Commissions collected from partner merchants.

• Late Fees: Charged to users on overdue payments.

• User Fees: Additional revenue generated from specific services.

A B2B2C acquisition model allows for low direct advertising costs, leveraging the merchant network to drive growth.

5. Operations and Processes

Operations are structured for efficiency, relying on:

• Automation: Onboarding, transaction processing, and debt management are automated.

• CRM System: Manages customer and merchant data, including purchase history and payment status.

• Partnerships: Collaboration with local payment processors and debt collection agencies allows for a lean internal structure.

6. Target Market and Customer Demographics

Audience Overview:

• Merchants: Retailers seeking to increase conversions via flexible payment options.

• Customers: Primarily low- to middle-income individuals preferring installment payments.

Key Demographics:

• User Base: 56,525 registered users, with a repeat rate of 22%.

• Age Group: 70% young working adults aged 21-45.

• Payment Methods: 90% of transactions use debit cards.

Acquisition Strategy:

The company leverages a B2B2C model, where new merchants bring their customer base into [Redacted Company Name]’s ecosystem.

7. Financial Overview

Key financial metrics underscore [Redacted Company Name]'s stable revenue generation and growth potential:

• Gross Merchandise Volume (GMV): $2,729,398 TTM

• Net Revenue: $1,213,928.75 TTM

• Net Profit: $9,850.18 TTM

• Average Revenue per User (ARPU): MYR 38

• App Downloads: Over 14,000

The company’s financial performance reflects its high-margin transaction focus.

8. Growth and Expansion Opportunities

Opportunities for growth include:

• Regional Expansion: Entry into neighboring markets where BNPL demand is rising.

• Product Diversification: Expanded installment options for high-value products.

• Local Market Penetration: Further growth potential within the current market, especially among underserved sectors.

9. Management and Team Structure

The team comprises three founders:

• CEO: Leads sales and strategic partnerships.

• COO: Manages operations and customer relations.

• CTO: Oversees technology and platform management; however, they plan to exit due to personal commitments.

Remaining founders are committed to supporting new ownership post-acquisition.

10. Valuation Justification and Pricing

[Redacted Company Name] is valued at approximately 0.14x net revenue, totaling $175,000 USD. This valuation is aligned with industry standards, reflecting the company’s market position, operational efficiency, and growth potential.

About the Agent 

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation.