Prezzee has also entered into discussions with investment banks in Australia, while weighing its options. No appointment has been made.
If the returns from these early discussions are such that a valuation of $1 billion or at least close to $1 billion is not an option, the company is more likely to raise venture capital funds for capital in 2022 and remain private for a few more years.
Prezzee sells gift cards for retailers around the world, including Amazon, Apple and David Jones, with its app allowing people to buy, send and store digital gift cards from a range of retailers . Its Smart eGift Card lets people choose from a range of top retailers.
It also offers a white label version of its product for enterprise customers such as Afterpay, Zip, QBE, Allianz, and Atlassian.
The company expanded into the United States in December last year, while its sales teams “went online”, according to Karp, in July. It also has a presence in the UK and New Zealand and will launch in Canada in time for Christmas. France and Germany are on its expansion list for 2022.
Its revenues are heavily skewed against peak retail periods.
In Australia, the company now has a 15% market share in the digital gift card market.
One of the deciding factors for the timing of any capital raising activity in 2022 will be whether the board deems it best to go early or wait for the “green shoots” of its new markets to grow. flourish.
For fiscal 2022, the company expects to process more than $1 billion in corporate and retail digital gift cards, up from $430 million in 2021.
Prezzee, which passes payment directly to the retailer while retaining a margin, also forecast revenue above $55 million, down from $20.2 million for the year to June 30 (vs. $6.4 million in 2020).
The company is also believed to be cash flow positive.
On these numbers, a valuation of $1 billion would imply a high revenue multiple, so growth should exceed expectations in 2022.
“Recent business activity, including that involving Afterpay, has obviously caught the attention of the board. Our growth plans can be expanded to include Asia and China and a public company model. can contribute to these results,” Karp said.
While Precision Group is the majority owner, the remaining 15% of shares are still held by Prezzee founders Claire Morris, Matt Hoggett and Stuart O’Brien, who started the company in 2015.