Spenda Ltd (ASX:SPX) has notched a strong year of operational and financial progress, raising revenue 73% to $5.4 million and signing strategic partnerships with Carpet Court Australia, Capricorn Society, AirPlus International GmbH and eBev.
The company also continued to scale its product lines during FY24, with software-as-a-service licensing fees from Spenda Accounts Receivable, Spenda Accounts Payable and the Payment Widget increasing total payment volumes 160% to $250 million compared to FY23.
Continuing to build toward net profit
While Spenda’s accounts ended in the red for the financial year with a $13.2 million loss (up from $11 million the year before), the company has taken great strides in building its services and customer base.
The Carpet Court deal is an exclusive five-year agreement that will see Spenda processing about $20 million in business-to-business (B2B) volumes on its platform, which alongside a 10-year deal with Capricorn Society for software and eCommerce payments infrastructure, provides SPX with long-term certainty in terms of customer revenue.
Capricorn also invested $7.2 million in SPX, becoming a cornerstone investor in a strong validation of the company’s potential.
Alongside ongoing revenue from its partnership with AirPlus International GmbH – which generated $200,000 in revenue in the fourth quarter of the financial year – Spenda is also rolling out integrated payment solutions across eBev's marketplace, which supports more than 2,500 licensed premises, and recently purchased Limepay, a payments solutions provider.
Limepay generated $2.8 million in unaudited revenue and $1.4 million in unaudited gross profit in the 2024 financial year.
The company says a deal with Lessn to acquire and process its entire payment volume will lift Limepay’s payment volumes 40% from day one to about $167 million per year.
Read: Spenda’s new Limepay business signs contract that will lift payment volumes 40%
“Lessn searched the entire market for the right payment's processor, and we have been lucky to find a fabulous partner in Limepay/Spenda, who meet all our business objectives and have made the entire negotiation and due diligence process a pleasure,” Lessn founder David Grossman said.
“With the commencement of a major customer in October, we expect our payments volume to increase ~ 550% from our current volume and it was business critical for us to select a partner that could support our rapid growth with minimal disruption to our business operations.
"The alignment commercially and culturally is strong, and few partnerships tick this many mutual goals.”