1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
SOPA
Event Date
2021-11-09
Sector
Industrials
Subsector
Commercial Services & Supplies
Offer Range
$9.00-$9.00
Shares Offered
2.89M
19.18M
$170.6M
15.1%
Implied Upside vs Midpoint
Description
Our mission statement is: Loyalty and Data…that’s what we do. We are an acquisitions-focused, e-commerce holding company. Since 2018, we developed our unique SoPa branded platform and acquired our #HOTTAB and Leflair ecosystems to facilitate e-commerce transactions between our consumers and our merchants in Southeast Asia (“SEA”) (including Vietnam, Philippines, Indonesia, Singapore, Malaysia, Thailand, Cambodia, Laos, Myanmar, and Brunei) and South Asia (including India, Bangladesh, Sri Lanka, the Maldives, Nepal, Bhutan, and Pakistan). Our marketing platform empowers small and medium enterprises (“SMEs”) to benefit from e-commerce opportunities in developing and frontier markets across SEA and South Asia, driving job-creation and economic growth in two of the world’s most dynamic regions. We intend to continue to opportunistically acquire regional e-commerce companies and applications to drive revenues and increase the number of registered consumers and merchants in our SoPa ecosystem. As more merchants and consumers in SEA and South Asia register on our Society Pass platform, more transaction data is generated. With more data generation, there are more opportunities for creating loyalty from consumers to merchants. We acquire and operate e-commerce platforms and mobile applications through our direct and indirect wholly or majority-owned subsidiaries, including but not limited to Society Technology LLC, SoPa Technology Pte Ltd, SoPa Cognitive Analytics Pte Ltd, Sopa Technology Co Ltd, HOTTAB Pte Ltd and HOTTAB Vietnam Co Ltd. Along with HOTTAB Asset Vietnam Co Ltd (currently wholly-owned by one employee of HOTTAB Vietnam Co Ltd and contractually operated by HOTTAB Vietnam Co Ltd), these eight companies form the Society Pass Group (the “Group”). The Group currently markets to both consumers and merchants in Vietnam while maintaining an administrative headquarters in Singapore. We recently acquired an online lifestyle platform of Leflair branded assets (the “Leflair Assets”) and have integrated the Leflair assets with the Society Pass ecosystem. After the completion of our initial public offering (“IPO”), we intend to expand our e-commerce ecosystem throughout the rest of SEA and South Asia by making selective acquisitions of leading e-commerce companies and applications with particular focuses on Philippines, Indonesia, India and Bangladesh. Our business currently comprises of seven e-commerce interfaces which are divided into two segments: a consumer facing segment targeting consumers and a merchant facing segment targeting merchants. The consumer facing segment includes SoPa Loyalty App, SoPa.asia Loyalty Marketplace website, Leflair Lifestyle App, and Leflair Lifestyle Marketplace website. The merchant facing segment includes #HOTTAB Biz App, #HOTTAB POS App and Hottab.net admin website (these e-commerce interfaces comprising both the consumer facing and the merchant facing segments are collectively referred to in this prospectus as the “Platform”). Our loyalty-focused and data-driven e-commerce marketing platform interfaces connect consumers with merchants in the food & beverage (“F&B”) and lifestyle sectors, assisting local brick-and-mortar businesses to access new customers and markets to thrive in an increasingly convenience-driven economy. Our Platform integrates with both global and country-specific search engines and applications and accepts international address and phone number data, providing a consumer experience that respects local languages, address formats and customs. Our Strategic Partners (as defined below) work with us to penetrate local markets, while our Platform allows effortless integration with existing technological applications and websites. Our consumer facing segment includes “SoPa” and “Leflair” brands. The SoPa services offered in our consumer facing segment include the SoPa.asia Loyalty Marketplace website and SoPa Loyalty App, which feature: • Location-based homepage. Based on consumers’ location, nearby SMEs and exclusive offers are selected and displayed on the Homepage for a smooth, user-friendly interaction. • Search/review. Our smart search engine, which allows consumers to search/review their favorite restaurants and cafes among tens of thousands of choices. Our ratings improve merchant customer service and product quality. • Merchant spotlight. Featured restaurants, cafes and bars get customized banners on SoPa.asia homepage, making it easier for consumers to discover and purchase from these merchants. • Cash/cashless payments. Consumers can decide on either cash or cashless payments. Payment integration partners (Momo, VNT, VTC, Zalo and Paytec), allow for fast and secure payments anytime and anywhere. Or users can pay by cash or with Society Points. Also, consumers can review purchase history. • Delivery. Consumers can place orders for delivery, pickup, or order entirely in store. Our delivery partners offer seamless delivery of product from merchant to consumer’s home or office at the touch of a button. • Society Points (expected to be launched in 4Q 2021). Beginning in 4Q 2021 with the expected launch of our loyalty points product, consumers shall earn Society Points, which can be redeemed at thousands of merchant locations. Personalized deals from merchants they love, where they can freely and easily spend their Society Points. Leflair services includes Leflair.com Lifestyle Marketplace and Leflair App which feature: • Premium brand access. Will provide access to more than 2,500 premium Vietnamese and international brands in the fashion and accessories, beauty, personal care, home and lifestyle markets. • Flash sales events. Will have highlighted flash sales events daily with a curated selection of premium brands, all with guaranteed authenticity. • Premium packaging. Sold with premium packaging and brand specific content. • Customized searches. Filter and search program designed to optimize user experience. Our merchant facing segment includes Hottab.net admin website, #HOTTAB Biz App and #HOTTAB POS App, The Hottab.net admin website features the following services for merchants: • Ordering/Payment. Merchants track their order history and accept all forms of payment methods, including Society Points, as well as review their payment history. • Offers and Promotions. Merchants easily create bundle offers or any kind of promotion. By awarding Society Points, merchants incent purchases without sacrificing margins. • Merchant Partnership Program. This value-added program is designed to optimize costs and increase revenues for our Merchants through a combination of personalized branding tools, joint marketing campaigns, and special vendor financing program. • Vendor Financing. Buy directly from featured suppliers with built-in financing, payment, and delivery management. Financing up to 100 million VND. #HOTTAB Biz App features the following services for merchants: • Connect with consumers. Merchants receive order details the instant consumers place an order on SoPa Loyalty application and SoPa.asia Marketplace. Merchants can also communicate with consumers via the integrated chatbox function. • Menu and Loyalty Management. Merchants upload dish description, pictures, detailed menus directly from their smartphone. Multilingual option available for all of #HOTTAB merchants. Merchants can also create any kind of promotion and have full control to allocate Society Points at all levels. • Order Management. Order summary, consumers’ details, payment method, delivery method, etc. are all available on #HOTTAB Biz so merchants can easily manage their orders anytime, anywhere #HOTTAB POS APP features the following products and services for merchants: • Remote Management. Though our software, business owners, shareholders and managers can choose a time to receive daily report about their business including number of orders, daily and monthly revenue, revenue by cash/card, discounted amount, etc. • Operation Management. Through our POS software, managers can assign tier to staff and what they can access on the system. They can track orders, inventory, while also manage daily operation, table reservations. We bundle and sell our POS software solutions together with devices such as POS machines and remote receipt printers that are manufactured by others and for which we receive a commission on sales. We do not currently manufacture any products. • #HOTTAB Mobile Payment Device (expected to be launched in 1H 2022). We expect to manufacture and sell Hottab mobile payment devices beginning in 1H 2022. The devices will allow customers to pay directly anywhere in the merchant’s business where they are located. Branded as “#HOTTAB”, our merchant facing business helps merchants increase revenues and streamline costs with an online and multilingual store front, fully integrated POS software solution, joint marketing program, payment infrastructure, loyalty administration, customer profile analytics, and SME financing packages. Through #HOTTAB Biz App, #HOTTAB POS and Hottab.net merchant administration website interfaces, #HOTTAB functions both online and offline and facilitates transactions, orders, voucher redemption, and rewards. Merchants only need a smart device in order to quickly access our #HOTTAB product ecosystem. In addition, our Customer Care department provides attentive after-sales service. We expect to launch in the fourth quarter of 2021 our unique merchant agnostic and universal loyalty points, branded as “Society Points.” We believe that Society Points will create permanent customer loyalty for merchants through the issuance and redemption of Society Points with unique and personalized deals. After the launch of Society Points, consumers will be able to use their Society Points at merchant locations initially throughout Vietnam and then we expect to expand availability of Society Points throughout SEA and South Asia. As of November 8, 2021, we have onboarded over 1.5 million registered consumers and over 3,500 registered merchants/brands onto our Platform. --- Our principal executive offices are located at 701 S. Carson Street, Suite 200, Carson City, NV 89701. Telephone Number: +65 6518-9382. Our corporate website address is www.thesocietypass.com. The website for our lifestyle marketplace is www.leflair.com. The website for our loyalty marketplace is www.sopa.asia. The website for our merchant facing business is www.hottab.net.
SOCIETY PASS INCORPORATED. annual income statement and balance sheet, FY 2021 to FY 2024, as reported in SEC filings.
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Revenue | $520K | $5.6M | $8.2M | $7.1M |
| Gross profit | ($191K) | $967K | $2.5M | $1.9M |
| Operating income | ($34.2M) | ($34.2M) | ($18.0M) | ($9.3M) |
| Net income | ($34.9M) | ($34.0M) | ($18.1M) | ($10.2M) |
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Total assets | $35.2M | $32.7M | $16.4M | $21.3M |
| Total liabilities | — | — | $11.3M | $23.7M |
| Total equity | $32.3M | $20.0M | $5.0M | ($2.4M) |
| Cash & equivalents | $23.3M | $18.9M | $3.6M | $7.6M |