Novatti chief executive Peter Cook released an update on his company's September quarter results on Friday (29 October). He was keen to highlight two aspects:
• A$5.3m in quarterly sales revenue, up 49 per cent year-on-year and the first time sales have passed the $5 million mark;
• $4.2m in quarterly processing sales revenue - up 103 per cent YoY
The completion of a $40m plus capital raising during the quarter has left Novatti with $19.9 million war chest (as at 30 September 20210).
This has allowed the company's payments processing and card issuing operations to expand into new markets – notably the acquisition of another payments fintech, ATX, which has a strong presence in South East Asia. Cook said ATX has been a Novatti "partner" since 2015, "de-risking" the deal.
Novatti has also closed the Series A funding round for its new banking business, with $10.5m committed. Cook noted that discussions with APRA are continuing, along with other moves such as:
• expanding a partnership with cross-border payments fintech Ripple into Thailand;
• starting integration testing with Visa and Mastercard for acquiring licences to deliver increased margins; and
• beginning discussions with Reckon on servicing the needs of their customers, following Novatti's strategic investment into the small business accounting software firm.