Ovanti Faces Execution Risks Despite Strategic BNPLPay Partnership and Leadership Shakeup

Strategic Leadership Shift to Support US BNPL Ambitions

Ovanti Limited (ASX: OVT) has announced a significant management reshuffle as it intensifies efforts to break into the competitive US Buy Now Pay Later market. Following the departure of former CEO Simon Keast in February 2025, Executive Chairman Daler Fayziev has stepped in as interim CEO while the company searches for a permanent US-based leader. This new CEO is expected to bring deep BNPL industry experience and operate within US time zones to accelerate merchant acquisitions and market penetration.

The leadership changes underscore Ovanti’s commitment to tailoring its operations to the unique demands of the US market, where time zone alignment and local expertise are critical for success. The company is targeting candidates with backgrounds in leading BNPL firms such as Sezzle or PayPal, signaling a strategic intent to leverage proven industry knowledge.

Groundbreaking Licensing Agreement with BNPLPay Protocol

Central to Ovanti’s US expansion strategy is a newly secured 20-year licensing agreement with BNPLPay Protocol, a blockchain-based decentralized finance platform designed specifically for BNPL providers. This partnership grants Ovanti preferential access to low-cost debt funding sourced from stablecoin-backed lenders, with interest rates significantly below traditional financing options.

Crucially, the BNPLPay Protocol eliminates the need for Ovanti to provide first-loss capital, a common requirement in conventional BNPL funding arrangements that typically ties up significant capital and increases risk exposure. This innovative funding model not only reduces Ovanti’s cost of capital by an estimated 30-40% compared to traditional sources but also frees up cash flow to be reinvested in growth initiatives.

In addition to funding benefits, Ovanti will receive 50% of all revenues generated by the BNPLPay Protocol, creating a substantial and recurring income stream that diversifies the company’s earnings beyond its direct BNPL lending activities. This revenue share aligns Ovanti’s financial success with the growth trajectory of the BNPLPay ecosystem, potentially amplifying returns as the platform scales.

iSentric Subsidiary Embraces AI-Driven Growth in ASEAN

Beyond BNPL, Ovanti’s wholly owned subsidiary iSentric is pivoting towards artificial intelligence-powered digital transformation solutions across the ASEAN region. Following the termination of a key banking agreement, iSentric has launched its Grow ASEAN Transformation (GREAT) roadmap, targeting sectors such as financial services, smart government, and omnichannel customer engagement.

With ongoing projects in Cambodia and exploratory initiatives in Indonesia and the Philippines, iSentric aims to capitalize on the region’s accelerating AI adoption. This strategic diversification complements Ovanti’s fintech focus and positions the group to capture emerging growth opportunities in digital enterprise solutions.

Capital Management and Corporate Developments

Ovanti continues to manage its capital structure actively, having repaid $944,000 in convertible notes during the quarter and announcing a pro-rata renounceable rights issue to raise approximately AUD 5.4 million post-quarter. The company is also progressing the sale of its 21% interest in Malaysian bank IDSB, with negotiations ongoing and a minimum sale price of AUD 15 million targeted to bolster liquidity ahead of the BNPL division’s US launch.

Despite operating cash outflows of nearly AUD 4 million for the quarter, Ovanti’s cash position stood at AUD 1.6 million as of 31 March 2025. The company’s management expresses confidence in sustaining operations through the proceeds of the rights issue and IDSB sale, while emphasizing the strategic importance of the BNPLPay Protocol partnership in securing stable, low-cost funding.