Spenda Limited’s (ASX: SPX) transaction services business continues to grow, with the Company having successfully drawn an additional $2 million from its debt warehouse facility.
The Company cited the drawing of funds for the significant acquisition of new customers from a number of industries including food and beverage, transport and logistics (gig economy) and labour hire, with the revenue from this $2 million dollar increase in the Company’s lending activities expected to generate an annual recurring revenue of $462 thousand, based on the current yield of 21 per cent and assuming funds drawn being fully utilised.
While the Company is unable to determine the precise amount of revenue to be generated by the onboarding of these new customers, the Company expects it to be material as payments processed on its platform continue to grow month on month, with $27.2 million in payments being processed for April and May already outdoing the $22.5 million in payments processed for the three months ended 31 March 2023.
Figure 1: Spenda payments volume since January 2023.
The Company secured the $50 million dollar debt facility in August as a way to accelerate growth, with funds being drawn to date now equating to $13 million dollars, representing a 73% increase in utilised funds since inception.
The Company said much of the new business can be attributed to the new business and rollout of the Carpet Court franchise network, which now makes transactions over the Company’s payment rails.
“Increase in lending and payment volumes is exactly what we would expect to see as our increased onboardings begin to show in our key leading indicators. Proving on-demand lending through the Spenda platform is a very compelling offer for our customers,” Spenda’s Managing Director Adrian Floate Said.
“The convergence of lending, payments and software that improves business efficiency is what sets us apart from our competitors and is starting to generate significant market momentum.”
SPX’s Australian Stock Exchange-listed share price was trading at 1c today (2:12 pm UTC+ 8 hours).