Robocash Group prepares AU$100 million IPO on the ASX

Getting ready for a AU$100 million initial public offering on the Australian Stock Exchange in December 2020, Singapore-headquartered Robocash Group opened a AU$7.5 million pre-IPO funding round to finance the launch of its Philippines Neobank called Una Bank by September 2020.

With extensive expertise in automation, risk management and data science gained by serving over 11 million customers across the footprint as of June 30 this year, Robocash Group is now heading toward digital banking. Focusing on serving the underbanked segment, the company will start the new direction in the Philippines. Similar to other products, the development of the neobank called Una Bank is completely in-house.

To start activities by September 2020, the group is now raising AU$7.5 million to be used as regulatory capital for a Philippine banking license. Later, in December 2020, the round will be followed by an IPO on the ASX. Expecting to attract AU$100 million during the float, the company will use the proceeds to support the further development of the online bank and accelerate expansion on the existing and new markets in Asia. For a financial services business, such raising would imply the post-money market capitalisation of over AU$500 million.

At the same time, taking risks associated with the launch of the new product, the management is sure in the group financial stability. Thus, providing 3.5 million loans worth US$303 million in 2019, the combined group revenue in the same financial year amounted to US$223.6 million. It was an 86% increase year over year. The target this year is to hit US$197.7 million by issuing 4.2 million loans by the end of 2020. The company expects that technologies and procedures improved during the Covid-19 outbreak will allow it to continue growing the net profit after tax up from US$17.3 million in 2019 to US$28.4 million in 2020.

Commenting on the news, Founder & CEO of Robocash Group Sergey Sedov added: “Focused on micro consumer lending for the underbanked since the inception in 2013, our team has seen the gap in the range and quality of services available for this segment. Moreover, it seems rather odd that people who are tech fluent and use digital solutions regularly remain underserved by traditional financial institutions. For instance, 95% out of two-thirds of Filipinos with access to the Internet use smartphones for that purpose. However, only 37% use banking apps. We are willing to change it and aim at delivering premium financial services to these markets. We expect to have 40 thousand active cardholders in a few months after our online bank goes live in the Philippines”.

KTM Capital and Foster Stockbroking have managed the pre-IPO round for Robocash Group and would be on board again during the IPO at the end of the year.