Way2VAT Ltd (ASX:W2V) made solid progress in the September quarter despite a bear market - improving transaction volume and revenues, completing a major acquisition and gaining access to a large new market in Spain.
“This quarter has seen widespread growth across Way2VAT as we expanded into the Spanish market and continued to roll out our patented technology platform across a wide range of industries bolstered by increased revenue and transaction volume for the period,” Way2VAT founder and CEO Amos Simantov said.
“We have completed a successful pilot on the Smart Spend Debit Mastercard, the world’s first spend card for the SMB and Enterprise market that fully automates VAT/GST returns from end-to-end.
“It is now enabling us to upsell to our existing SMB and enterprise clients, having received widespread positive feedback from pilot clients.”
W2V’s card has begun to generate annual income streams for the company through the Software-as-a-Service (SaaS) model with monthly charges to card users, administration licences and a percentage from each successful VAT/GST refund.
The pilot was initially rolled out across 20 companies in four industry sectors, with more expansion anticipated based on positive client feedback.
DevoluIVA key to open Spanish market
Way2VAT also completed the acquisition and integration of DevoluIVA and its platform during the quarter, giving the company access to more than 130,000 merchants in an established network
“It is exciting to have DevoluIVA and its staff as part of the Way2VAT family enabling us to expand the business into Spain with its unique domestic VAT structure,” Simantov continued.
“The acquisition will also provide the opportunity to expand our Smart Spend Debit Card into a large market through DevoluIVA's national network.
“We have integrated the platforms of both entities to provide a comprehensive solution to our clients and to immediately start contributing to and being recognised in Way2VAT’s consolidated revenues from the completion date in late September 2022.”
Transaction volume up 20% since last quarter
On the corporate finance side of things, W2V’s transaction volume rose 20% from last quarter to $6.74 million and cash receipts also improved by 7% to bring in $208,000.
The company signed 10 new multinational enterprise customers, the two major deals being Duracell and Klockner Pentaplast GmbH.
“We continue to grow our enterprise customer base to 225 as of the end of the quarter, welcoming Duracell, the world’s number one consumer battery company by market share with all 3,300 global employees and Klockner Pentaplas, one of the world’s leading plastics manufacturers with 5,700 employees around the world,” Simantov said.
“With increased support from new and existing investors, we are able to fast track the commercialisation of the Smart Spend Debit Mastercard and our proprietary technologies as we look to capitalise on markets returning to pre-pandemic travel conditions.”
Way2VAT successfully raised $300,000 in a private placement to fund said commercialisation, and now holds a cash balance of $1.64 million as of September 30 this year.