Spenda Completes Final Phase of DSD Initiative with Capricorn

19 December 2023 09:51
Spenda Capricorn Society

Spenda Limited (ASX:SPX) has announced the successful completion of its Digital Services Delivery (DSD) initiative, in collaboration with Capricorn Society Limited, paving the way for advanced discussions to finalise a 10-year service agreement and commercial launch in mid-2024.

Unveiling New Payment Solutions

The successful completion of the DSD initiative’s final phase enables for a commercial launch in the second half of the fiscal year 2024.

The successful completion of the initial phase in August 2023, and subsequent extension of the foundational phase engagement, demonstrated Spenda’s commitment and capabilities in delivering high-quality solutions.

The new payment solutions, powered by Spenda, will revolutionise Capricorn’s Members’ access to eCommerce payment facilities.

Notably, this enhanced infrastructure will feature Spenda’s Pay-Statement-by-Link for live statement viewing and seamless purchase integration.

Additionally, a customised Payment Widget will facilitate the charging of Member purchases to the Capricorn Trade Account through preferred Supplier ecommerce solutions, further enhancing the efficiency and user experience of the payment process.

Upfront and Recurring Benefits

Spenda stands to gain both upfront and recurring revenue from this collaboration.

The Company will receive $443,000 for the successful completion of the final phase, coupled with $1.3 million in initial development fees for the upcoming commercial launch.

Furthermore, a recurring revenue stream of $100,000 per month in software licensing fees adds stability to Spenda’s financial outlook.

Capricorn’s Extensive Network

Capricorn, established in 1974, has evolved into a member-based organisation supporting businesses in the automotive industry.

With over 26,000 Members and 2,000 preferred Suppliers across Australia and New Zealand, Capricorn’s network boasts a monthly purchasing volume of approximately $270 million in parts from approved Suppliers.

Spenda’s payment infrastructure is poised to tap into this substantial market, offering enhanced eCommerce solutions to Capricorn’s extensive network.

A ‘Transformational Commercial Opportunity’

Spenda’s CEO and Managing Director, Adrian Floate, expresses excitement about the transformational commercial opportunity this partnership presents.

“The long term partnership with Capricorn is a transformational commercial opportunity for Spenda,” he said.

“We are thrilled to have successfully completed the Foundation phase to de-risk the solution implementation and provide the parties with further insight on final design before the build phase commences.”

“Our payments infrastructure will significantly improve the cash utilisation and reduce the working capital requirements throughout Capricorn’s network of Members and preferred Suppliers and the commercial potential of this partnership over the next decade and beyond is significant.”

SPX’s Australian Stock Exchange-listed share price has risen 8.33% and is currently trading at $0.013 today (9:30am UTC+ 8 hours).

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