September 24, 2021 (Investorideas.com Newswire) Logiq Inc. has been a champion of small and medium sized companies, offering instruments to assist them compete in an e-commerce world dominated by giant gamers. And now the corporate inked a number of giant, probably profitable offers in rising markets.
In case you are a small- or medium-sized enterprise, how do you get seen on-line when megabrands management virtually 70% of the U.S. e-commerce market? Small-cap Logiq Inc. (LGIQ:NEO; LGIQ:OTCQX) goals to degree the enjoying discipline for small and medium-sized companies by providing entry to instruments that beforehand had been accessible solely to giant firms. And the corporate is branching out in profitable area of interest markets in rising economies reminiscent of Indonesia and Nigeria.
The corporate has been round since late 2014, with a product now referred to as AppLogiq, a cellular app designed for micro to small companies to get their offline enterprise to an internet format with zero technical experience. “With no technical experience, we may construct your personal cellular web site, utilizing a smartphone, and have it revealed inside two hours,” Brent Suen, Logiq’s government chairman and president, informed Streetwise Stories. “Companies can take on-line orders, do promotions, and use as much as 70 completely different features, from human assets to Quickbooks.”
Logiq started within the cellular app area as a result of “in rising markets, as much as 90% of the inhabitants has a smartphone, however solely 10–20% have desktop or laptop computer computer systems,” Suen defined. “We used the subscription mannequin and grew the enterprise from 2014 till about 2019, so in 5 years we went as excessive as US$34 million in income.” With about 300,000 micro to small enterprise customers, AppLogiq contributes about 30% of income.
In 2019, the corporate checked out find out how to increase into extra developed markets.
Suen famous that e-commerce solely captures 20% of all retail gross sales, so there’s numerous room for progress of e-commerce, however inside e-commerce itself, 53% of gross sales are managed by solely 5 firms, well-known names like Amazon, Walmart, eBay, Goal. “That signifies that the opposite 1.6 million companies which might be on-line need to compete towards some monster advert budgets. And the instruments on the market are solely accessible to e-commerce firms which have a minimal of $10 million a month, which principally guidelines out everybody however the largest manufacturers,” he mentioned.
Logiq acquired an organization referred to as Push Interactive, primarily based in Minneapolis, that helps discover prospects for current on-line companies, utilizing lead era, search engine marketing, digital advertising, and many others. “We did not depart from our core roots, basically enabling micro to small companies to get on-line, however we advanced into serving to current on-line companies discover new prospects,” Suen famous.
Logiq’s DataLogiq enterprise unit consists of the acquisition of Push Interactive and two different acquisitions made prior to now yr. “Whether or not it is an advert company that companies small companies, or the precise small enterprise itself, they now have entry to the identical varieties of instruments that an Amazon or an eBay or one of many giant e-commerce retailers has, whereas earlier than they had been priced out of the market. We attempting to assist small enterprise higher compete, discover higher prospects and be extra related,” Suen mentioned.
DataLogiq offers a platform that allows a enterprise of any measurement with a minimal month-to-month funds of $10,000 to compete towards the advert spend of the bigger firms. “Our platform is actually the identical as TradeDesk, which makes cash by charging between 35% and 45% of the advert spend,” Suen defined. “We generate profits by displaying the precise value that we purchased the advert for the shopper and we mark it up by 15%. So not solely do we’ve got full transparency, our prospects get higher pricing.” DataLogiq contributes 70% of Logiq’s income. Initially targeted on the North American and European market, Logiq just lately expanded Logiq Digital Advertising to the Asia Pacific area.
No stranger to rising markets, Logiq is now increasing past its preliminary cellular app, and just lately signed offers in Indonesia and Nigeria. “We view Indonesia has an enormous alternative; with a inhabitants of 270 million folks, smartphone penetration is 90%, and a big proportion of the companies are micro or small,” Suen mentioned.
“We’ve got branched out to areas that others are usually not going after,” he defined. The primary is microlending; Logiq is working with Indonesia’s Social Safety Administration, which has 52 million members, and expects to start a pilot mission quickly with its 6,000 staff, working in partnership with a financial institution or monetary establishment in Indonesia to mortgage small quantities. “It represents low threat as a result of the Social Safety Administration already administers payroll advantages, pension financial savings and insurance coverage. It is a captive market on one hand; it is a excessive barrier to entry as a result of we have been chosen as the only supply supplier, and so it is an enormous alternative. The lending charges are enticing and the danger is comparatively low,” Suen mentioned.
The banks will cost 16% curiosity and Logiq will share in a part of that. “Much more enticing is entry to the info,” Suen mentioned. “As soon as we’ve got the patron knowledge, we will goal these shoppers for different services and products.” The corporate expects all the pieces to be absolutely working at scale by this time subsequent yr.
“We determine that at a 2% penetration price, the contract could possibly be price $2 or $3 million in extra income per yr, and that doesn’t embrace the worth of the info. It is about 80% gross revenue margin, so it’s totally enticing. Plus it scales properly and will very nicely eclipse our whole income run price proper now,” Suen mentioned.
Logiq’s second alternative in Indonesia is psychological testing that’s required to obtain a driver’s license. Prior to now, one must go right into a police station and take a written and oral check, however that modified with COVID. The only real supply supplier in Indonesia is an organization named Mentalku, which is Logiq’s companion with the Social Safety Administration. “As we began transferring ahead with Mentalku, they requested about creating a totally app-based check that individuals may take by means of their telephone and pay by means of their telephone. That was the nexus of us partnering with them to do these psychological assessments. There’s an e-commerce performance to it: prospects can order over-the-counter or prescription prescribed drugs, wellness merchandise, make epayments utilizing the opposite features of the app,” Suen defined. The app launces on September 28.
In Nigeria, Logiq has made a preliminary settlement with Novaji Introserve, “a value-added IT and monetary companies firm primarily based in Lagos, to supply residence supply and cellular monetary companies to tens of millions of unbanked and underbanked folks in Nigeria.” Becoming a member of with Novaji “marks our first foray into rising markets exterior of Indonesia,” acknowledged Suen. “Nigeria, with a inhabitants of 212 million, is without doubt one of the most populous nations on the planet, but most individuals haven’t got financial institution accounts. This creates a significant alternative for our cellular commerce and fintech platforms which were particularly designed for rising markets. These field-proven options can present much-needed monetary companies to tens of tens of millions throughout the area.”
Logiq has roughly 23 million shares excellent and 26 million absolutely diluted. It trades on Canada’s NEO trade beneath the ticker LGIQ, and within the U.S. on the OTCQX as LGIQ. Logiq is transferring forward to uplist to the New York Inventory Alternate.
We requested Suen why ought to an investor be fascinated about Logiq. He famous that the typical firm in its peer area is buying and selling 23 occasions income, whereas Logiq is buying and selling at present a bit bit under two occasions income. “I believe we’re fairly undervalued the place we are actually. And from an investor perspective, that actually minimizes threat and maximizes upside,” he concluded.
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