Douugh’s embedded finance activities drive sharp revenue growth in Q2, launches Stakk

Douugh’s embedded finance activities drive sharp revenue growth in Q2, launches Stakk

ASX-listed Douugh Ltd (ASX: DOU), the award winning fintech on a mission to enable more efficient money management through its embedded finance platform technology, have released its Quarterly Activities Report for the period ending 31 December 2023.

Today’s report highlights strong revenue growth achieved by Douugh, driven primarily by its Embedded Finance (B2B) activities and its consumer app (B2C) loan origination and share-trading activities.

With over $7 million of shareholder capital invested into the technology platform over the past 36-months, Douugh has successfully developed and deployed one of the industry’s most comprehensive and multi-functional Embedded Finance solutions – commonly referred to outside of Australia as Banking-as-a-Service (BaaS).

Designed not only to deliver key banking and investing capabilities in different regions across the globe, Douugh’s technology stack is principally focused on enabling more intuitive and efficient money management.

Initially deployed on a business-to-consumer basis (B2C) in Australia and the United States under the “Douugh” brand, Douugh has continued to capitalise on its technology stack (and the shareholder capital invested in it), by making it available through a ‘business to business’(B2B) model.

This B2B model, operated under the “Stakk” brand, “powered by Douugh”, is now generating initial monthly revenues of ~$55,000. Although Douugh anticipate continued growth in this area, they think shareholders will agree that initial revenues from this activity are meaningful at this early stage.

In its modular form, Stakk is a multi-functional offering, offered on an a-la-carte basis, that includes:

  • Digital banking apps (native iOS, Android, and https white labelled apps)
  • Online Account Opening (KYC, AML, Fraud Monitoring, Credit decisioning)
  • Identity verification
  • Account to account payments (including RTP)
  • Banking (and connected accounts)
  • Debit and credit card issuing (and program management)
  • Checking and savings accounts (including DDA and Pseudo DDA’s in the U.S Market)
  • US share trading
  • Automated money management (budgeting, saving, investing)
  • Instalment based credit
  • Stockback rewards (cashback rewards program that is converted into shares)
  • Merchant payment gateway

All functionality is API (application programming interface) driven and complemented with certain Mobile SDK’s (software developer kits) for rapid deployment.

Perhaps most notably though, this highly efficient model makes the Douugh Embedded Finance solution appealing and accessible to Fintech providers, lenders, banks, credit unions and building societies, mutual funds, and other brands seeking such functions as part of their Embedded Finance strategies.

Complemented by the growth of its loan origination activities (B2C), which saw Douugh issue ~700 loans, equating to $102,000 in Q2, up from $53,000 in Q1. Douugh is excited by the commercial prospects of Stakk, and is now pursuing further revenue growth from within the Australian market, as well as through strategic partnerships in the United States.

Douugh looks forward to keeping the Market updated as it achieves further notable milestones, including the anticipated full-market release of its “Douugh Pay” solution for Merchants, which is currently in Beta testing.

Commenting on the announcement, Douugh’s Founder and CEO Andy Taylor said, “We are delighted to announce a material increase in revenue following the roll out of our new (B2B) Embedded Finance division Stakk.

“As previously announced, having invested significantly into R&D over the last 5 years, we’ve long been assessing the merits of white-labelling our technology to other businesses in order to expand our revenue profile, whilst achieving economies of scale and profitability sooner for the benefit of shareholders.

“We are now starting to reap the financial benefits of this strategy and we expect this to continue as we expand our sales pipeline and forge new strategic partnerships across Australia and the US.

“The Douugh (B2C) offering will be scaled up through Merchant partnerships as we roll out our new Douugh Pay gateway product to Merchants. We expect this to meaningfully contribute to customer and revenue growth from Q4.

“We also made further improvements in the quarter and will continue to reduce our overheads as much as possible, whilst maintaining our ability to continue to operate and grow the business.”