Business Name: Sign NDA at https://fih.com/listing/7364519 to view

Business Start Date: 8/2020

Business Location: Kuala Lumpur, Malaysia

Business Price: $175,000 USD

Business Model: Payment Processing, Revenue-Sharing

Industry: Buy-Now-Pay-Later, Fintech

Percentage Being Sold: 100%

GMV (TTM): $2,729,398

Net Revenue (TTM): $287,645

Net Profit (TTM): $6,148.19

Business Multiple (Net Revenue): About .6x Sales

Registered Customers (Total): 56,525

Registered Merchants (Total): 1,657

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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 net revenue of $287,645 and net profit of $6,148.19. 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: $287,645 TTM

• Net Profit: $6,148.19 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 0.6x 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.