Ovanti Raises $6M, Meets KPIs to Enter US BNPL Market in 2025
Ovanti Limited has made significant strides in its plan to enter the US Buy Now Pay Later market, delivering a comprehensive strategic report and strengthening its executive team to support expansion.
- CEO Simon Keast delivers strategic report fulfilling all KPIs for US BNPL market entry
- Key executive hires made to support US expansion including Chief Revenue and Credit Risk Officers
- AUD $6 million placement completed to fund US growth initiatives
- iSentric subsidiary shows strong mobile banking transaction growth
- Cash position stands at $5.4 million with ongoing legal and compliance preparations
Strategic Momentum in US BNPL Market Entry
Ovanti Limited (ASX: OVT) has reported meaningful progress in its ambitious plan to establish a foothold in the US Buy Now Pay Later (BNPL) sector. Under the leadership of newly appointed CEO Simon Keast, formerly US CFO of ZIP, the company has delivered a detailed strategic report to its Board, meeting and exceeding all key performance indicators set out in October 2024.
The report outlines Ovanti's product and operational strategies for both its existing Asian markets and the planned US expansion. It also includes a comprehensive review of its subsidiary iSentric and other business units, positioning the company for aggressive growth in a highly competitive environment.
Building the Team and Infrastructure
To support this strategic push, Ovanti has made several key executive appointments, including a Chief Revenue Officer and Chief Credit Risk Officer, alongside advisors in technology and treasury roles. These hires are critical to establishing the technological, legal, and compliance frameworks necessary for BNPL operations across multiple US states.
Post-quarter, the company announced plans to form an advisory board comprising leading BNPL industry figures to oversee the US market entry, signaling Ovanti's commitment to leveraging deep sector expertise.
Financial Position and Capital Raising
Ovanti successfully completed a $6 million placement in December 2024, issuing 300 million shares at $0.02 each. The capital raised is earmarked for expanding the US team, covering legal and compliance costs, marketing, merchant acquisition, and platform development. The company also anticipates proceeds of approximately $14.3 million from the sale of IDSB, further bolstering its financial position.
As of 31 December 2024, Ovanti held $5.4 million in cash, with operating cash outflows of $2.37 million for the quarter, reflecting ongoing investment in growth initiatives. The company continues to manage its cash prudently while scaling operations.
iSentric’s Strong Performance
Ovanti’s wholly owned subsidiary, iSentric, reported record transaction volumes in its Mobile Banking division during the quarter, driven by increased activity from existing clients in Australia and Malaysia. This growth underscores the company’s solid operational base as it diversifies into new markets.
Looking Ahead
The Board is currently reviewing the strategic report and will engage legal counsel to ensure sensitive commercial information is appropriately managed before public release. Ovanti’s next steps include finalising the US market entry strategy, establishing physical offices in key states, and securing multi-year partnerships with major US retailers.
Bottom Line?
Ovanti’s successful delivery of its US BNPL strategy report and key hires set the stage for a critical growth phase, but execution risks remain as it navigates a complex market.
Questions in the middle?
- How will Ovanti differentiate its BNPL offering in the crowded US market?
- What timeline can investors expect for Ovanti’s first US BNPL transactions and customer acquisition milestones?
- Which US retailers are potential partners for Ovanti’s multi-year agreements, and how soon might these deals materialize?
