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Fatfish Internet Group invests in Indonesian e-commerce company

Last updated: 23:30 12 Nov 2014 GMT, First published: 22:30 12 Nov 2014 GMT

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Fatfish Internet Group (ASX:FFG) has entered into an Investment Agreement to invest US$200,000 into Indonesia’s PT Mitra Cipta Teknology (Mitra Cipta).

This will give it a 56% interest in Mitra Cipta, which operates e-commerce website www.HargaHot.com that has served more than 47,000 households in Indonesia since its started operations a year ago.

Indonesia has an estimated population of 75 million internet users and has a fast growing e-commerce industry because of the size of the market.

www.HargaHot.com has a business model similar to that of website www.CatchOfTheDay.com.au and offers lifestyle and household items online at a discount and earns a margin from the sales.

Dragon Commerce, Fatfish’s newly setup Indonesian subsidiary, is focused on investing into Indonesian e-commerce businesses and plans to be publicly listed on the Indonesian Stock Exchange (IDX) within the next 18 months as a pure-play e-commerce company.

There is currently no pure-play e-commerce company quoted on the IDX.

Separately, the company’s Singaporean subsidiary Fatfish Internet has assisted its investee company Dressabelle Pte Ltd to identify and secure further investment from third-party investors, include Sovereign Capital.

Sovereign Capital and co-investors have made an investment of US$708,000 into Dressabelle in the form of Series A shares.

As part of this round of investment Fatfish Internet has made a follow-on investment of US$50,000 in the form of Series A shares in Dressabelle.

Upon full conversion, this US$708,000 worth of Series A shares will convert into 33.33% ordinary capital of Dressabelle. This investment puts a valuation of US$2.12 million on Dressabelle.

If the Series A shares are fully converted into ordinary shares, Fatfish Internet will eventually own 14.1% of the ordinary capital of Dressabelle on a fully-diluted basis.

This valuation is significantly higher than that of the earlier investment option and arrangement granted by Dressabelle to Fatfish Internet.



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