E-Tranzact International Plc has announced that they have received approval from shareholders to raise their authorised share capital by ₦7bn..
The company trading as ETRANZACT:LAG on the Lagos Stock Exchange will now have a shareholders equity (common stock) of ₦9.1bn after the raise must have been completed.
Despite a 12.28% increase in revenue from ₦10.40bn to ₦11.68bn, between 2016 and 2017, eTranzact has seen net income drop by 53.36% to ₦208.41m.
In May 2018, the company got caught in the country’s regulatory web and they were fined ₦11bn and it forced them to change their management.
Speaking on the proposed capital raise, the new Chief Executive Officer, Mr Niyi Toluwalope (former CFO), said the company would focus on three things.
One, they would improve their service delivery by “acquiring state-of-the-art infrastructure”, retaining best talents, reduced downtime and a faster response rate.
Two, the new capital injection would help them expand their service delivery. Currently, the company offers maintenance and support services, software development and of course, transaction switching across the web, POS, and ATM channels. Their products include eTranzact CorporatePay, eTranzact Genesis, eTranzact Strong Authentication, eTranzact WebConnect and eTranzact mCommerce, many of which are Business-to-Business. However, recently, the switching company was granted a Mobile Money Operator (MMO) license to provide mobile money services to individuals with a special focus on the unbanked.
eTranzact…has evolved into a brand with a global reach with operations in Nigeria, Ghana, and South Africa, with expansion inclination to more countries in the world.
Niyi Toluwalope, CEO, eTranzact
Finally, they are looking to expand to more countries as cited in the CEO’s comment.
The capital raise proposal of ₦7bn was tabled by the company’s chairman, Mr Wole Abegunde, at an Extraordinary General Meeting (EGM) in Lagos.
Mr Abegunde stated that the decision to raise additional capital became imperative, considering the need of the company to expand its operations, deepen its market share and to remain competitive in the financial technology industry.
eTranzact appears to have bounced back from their H1 2018 setback and are looking to come for the lunch of existing MMOs and fintechs, as a way to regain market leadership. Also, per their statement, they are hiring, so now might be a good time to reach out to them.
