With the global e-commerce boom showing no signs of slowing, it’s creating BIG opportunity for severely undervalued Logiq Inc. (STOCK:LGIQ).
In fact, trading with a market cap of approx. $93 million, LGIQ is growing FAST in the $6.5 trillion global e-commerce market(1), and the $4.3 trillion mobile commerce market.(2)
The very same markets that drove:
The best part — Undervalued at approx. 2.2x revenues, as compared to the industry average of approx. 26x, Loqiq Inc. (STOCK:LGIQ) may hold the very same potential.
At the moment, the company appears to be on track for record revenues of $38 million, with margins expanding across all business segments.
Logiq also expects its net loss, driven primarily by the pandemic impact, to improve from $4.5 million in the first half of the year to about $2 million in the second half.(3)
And it expects that trend to continue in 2021, as margins run from approx. 18% to 30-32%.
Plus, the company’s offerings now range from mobile commerce and fintech solutions for micro-small- and medium-sized businesses (MSMBs) to AI-powered customer acquisition for major enterprises and brands. Customer relationships now range from hundreds of thousands of MSMBs around the world to publicly traded Fortune 500 companies.
There also doesn’t seem to be any shortage of growth.
All as it addresses the largest, fastest growing e-commerce markets.(4)
And the global mobile commerce market with 5.1 billion unique mobile users.(4)
The company has four chief drivers of revenue.
This is a subscription-based mobile commerce PaaS that allow small- to medium-sized businesses (SMBs) to market, auction, and deliver goods and services with any mobile device. Simply put, LGIQ is the “Shopify of Mobile.”
It’s also offered across Southeast Asia, Europe, the U.S., and in 14 languages – all regions with the world’s most active mobile users.
In addition, Logiq sees revenue in the second half of 2020 to be driven primarily by 20% growth in DataLogiq, leading to more than $38 million in revenue for the year.
AppLogiq is expected to return to its historical double-digit growth in 2021.
This is a MarTech and AI-Powered Big Data platform for enterprises and brands. Consumer monetization platform connects providers with brands.
It’s providing connections for buyers and sellers of consumer data.
DataLogiq’s strong growth will be partially offset by a slow return to growth in AppLogiq subscription revenue due to the impact of a COVID-19 lockdown in Jakarta, Indonesia where most of AppLogiq’s distributors and customers operate.
The company’s PayLogiq mobile e-wallet and GoLogiq urban food delivery services showcase the power of the AppLogiq platform to create highly valuable mobile apps that can attract large and active user bases.
These services have become magnets of interest by major industry partners due to the valuable consumer data both have acquired since inception and their focus on emerging markets in Southeast Asia.
Together, PayLogiq and GoLogiq annualized gross transaction volume (GTV) currently exceeds $24 million. Comparative M&As and investments place the valuation of PayLogiq and GoLogiq at 2-4 times their GTV or at $48 million to $96 million. The combined GTV growth outlook for 2021 currently exceeds $50 million. (Source 5)
Meanwhile, these platforms appear to continue to benefit from strong market trends. Statista reports that online food delivery business in Indonesia where GoLogiq operates is growing at an approx. 11.5% compounded annual growth rate and could reach $3 billion by 2024.
Meanwhile, Bank Indonesia reports that the total value of e-wallet transactions increased more than tripled in 2019 to $10.45 billion.
Logiq recently formed a partnership with Shopee, the leading online shopping platform in Southeast Asia and unit of NYSE-traded Sea Ltd.
It also announced an integration of GoLogiq with the ShopeePay mobile payment platform and launched a co-marketing campaign. ShopeePay brings to the campaign strong growth in this market. In its recent quarter, ShopeePay generated 260 million financial transactions, an increase of approximately 130% year-over-year, with a revenue increase of approx. 187% to a record $510.6 million.
The company also joined forces with Yabx, the microfinance unit of $5.2 billion Tech Mahindra.
The two will offer credit-based financial services via the PayLogiq mobile app in Indonesia.
According to Logiq CEO, Tom Furukawa: “Through our synergistic acquisitions and new partnerships, and further cross-platform enhancements, we will continue to increase customer activity across our business segments as we take advantage of the market trends driving the phenomenal growth of eCommerce worldwide.”
Successful companies tend to possess common traits, and one of those traits is a strong management team and Independent Board of Directors. Logiq Inc. (STOCK:LGIQ) certainly has that ground covered.
MR. BRENT SUEN, President & Executive Chairman
Mr. Suen has 31 years of experience in the capital markets / investment banking industry. He was the youngest hire at Bear Stearns merger arbitrage department in 1987. He also has significant experience with Telecom, Media and Technology (TMT) companies as both investor and advisor. Brent has significant operational experience with both start-ups and expansion stage companies in Silicon Valley during the 1990’s, emerging markets experience in Asia, Eastern Europe and Latin America, and more recently mobile and internet companies in Southeast Asia.
MR. TOM FURUKAWA, Chief Executive Officer
From startups and IPOs to major global enterprises, over last 15 years, he has been responsible for defining and building products for some of the world most successful companies, including Yahoo!, IBM, Rubicon Project, and Enthusiast Network.
Previously, CTO of Logiq’s DataLogic subsidiary, and served as CPO at ConversionPoint, leading product development with clients including Intel, Samsung, Nikon & Logitech.
At Ad Exchange, created the firm’s award-winning next-generation marketing technologies.
Earlier, led product marketing at IBM Tivoli, and as head of monetization for Kelly Blue Book, drove an approx. 20% increase in website annual advertising revenue.
MR. JOHN MACNEIL, Chief Operating Officer & Director
Mr. MacNeil has established extensive experience in the both financial services and technology industries over the course of a thirty year career. From 2008 to present, Mr. MacNeil advised technology, financial technology and renewable energy companies on strategic relationships, financial forecasting, investor relations and capital formation. He was a portfolio manager for technology funds at Schroders Investment Management from 1999-2008. He holds an MBA from Columbia Business School, as well as a BSEE from University of Connecticut.
MR. LIONEL CHOONG, Chief Financial Officer & Director
Mr. Choong has had over 30 years of experience in finance across a number of fields, such as ‘Big 4’ audit, compliance and chief financial officer. He was former vice chairman of Emerson Radio (NYSE: MSN). He was also the former Chief Financial Officer of Byford London, listed on the Hong Kong Stock Exchange. Lionel is a chartered accountant & retired as a partner of Deloitte where he headed up the biz development for Corporate finance service lines. He has an MBA from Kellogg-HKUST and a Corporate Finance Diploma from the Institute of Chartered Accountants in England & Wales, UK.
MR. MATTHEW BURLAGE, Director
Matt has spent the last three decades involved in financing and advising Asia’s leadingcorporations, government enterprises and financial institutions and has been involved insome of the most groundbreaking transactions in Asia, particularly in the telecom,media and technology (TMT) sectors. In 2000, Matt co-founded IRG, a boutique financialadvisory and investment firm focused on the core growth sectors in Asia. Matt advisesAsian and global corporates, private equity funds, hedge funds and sovereign wealthfunds on a range of transactions including mergers, acquisitions, corporaterestructurings, and debt capital and equity capital financings. Matt is also responsiblefor the firm’s investment strategy and management of its proprietary capital. Before co-founding IRG, Matt was a Managing Director and Head of Industry Groups at LehmanBrothers in Hong Kong. Matt has a MBA from Harvard Business School and a Bachelor ofArts from Yale University, and attended the Japanese Language Institute of SophiaUniversity.
MR. ROSS O’BRIEN, Director
Ross is an analyst, writer, presenter, and consultant focused on the economies andbusiness environments of the Asia-Pacific, with over 25 years of experience in theregion. His analysis surrounds Asia’s Innovation Economy—the intersection ofinformation technology and the region’s broader society and economy. For nine yearshe was Director of the Economist Corporate Network. Currently, and beginning in 2003,Ross was Managing Director of the Hong Kong operations of Intercedent Asia, a region-wide partnership of B2B market consultants, which provides research based marketentry and positioning advice in several verticals across Asia. Ross’ practice focuses onmarket entry strategies for telecoms and IT companies, in managed services andwireless solutions. His client work involved extensive research work in over a dozeneconomies in Asia, including extended field research in China, Indonesia, Vietnam andBangladesh. Ross has an AB in Asian Studies and Anthropology from Dartmouth College(1989), and an MBA from the University of California at Berkeley’s Haas School (1996).He is conversant and literate in Mandarin and Indonesian.
MR. BRETT LAY, Director
Currently President of RTI Network, an undersea cable operator funded by Google, NEC and other Fortune 500 companies. Over 18 years of work experience in Asia while residing in Singapore and Hong Kong. Active member of the board of directors for joint ventures in China, India, South Korea, and Philippines. Originated and completed the successful execution of several mergers and acquisitions, including the post integration efforts. A company officer in diverse sized organizations including; a large corporation (NYSE $62 billion), a startup company taking it from an idea to now a component of a $33 billion NASDAQ public company, and recently completed the sale of Pacnet to Telstra. Created multiple financing programs including equity origination, senior bank facilities, high yield bond facilities, and lines of vendor credit. Created, maintained and restructured debt programs, operating environments, shareholder equity structures, vendor relationships, and bank facilities. Reviewed multiple financing structures to meetshareholder objectives including IPO, REIT spinoff, asset trust structures, and minority investments. Managed a large finance workforce over a widespread diversified region. Actively managed P&L performance and operating results. Created and implemented a corporate restructuring that included the downsizing of the workforce by nearly 30% and reducing annual SG&A expenses by $25 million. Managed shareholder relationshipsincluding large private equity groups to meet their financial objectives.
MR. JOSH JACOBS, Director
Jacobs is a highly accomplished technology executive with 30 years of innovation in digital media and advertising, sales and marketing, and strategic business and consumer product development. A noted pioneer in the programmatic media-buying industry, he has held senior level executive roles at several top technology companies on a global scale.
He most recently served in a number of leadership positions at Maven, a leading media platform for digital publishers. As president and executive chair,he led the company through the acquisition and integration of four media companies that included Sports Illustrated, Hub Pages, Say Media, and TheStreet featuring Jim Cramer.Within three years, Maven grew from a startup to a market leading platform serving over 110 million readers monthly and generating more than $100 million in revenue. He presently serves on thecompany’s board of directors.
Prior to Maven, Jacobs served as president of services at Kik Interactive, where he led the introduction of a developer and partner ecosystem powered by one of the world’s leading chat and messaging platforms. Earlier, he served as CEO of Accuen, an Omnicom agency, and president of platforms and partnerships for the Omnicom Media Group. He grew Accuen from a single office in Chicago into a global powerhouse, with a presence across more than 65 countries.