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Top 5 Public Australian FinTech Companies Stock Investment

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Fintech is a burgeoning market sector that has been the asymmetric focus of financial media coverage. Marketsmedia writes that fintech investments totaled $102b in 2021—an increase of 183% over 2020.

One of the emerging markets to keep an eye on is the Australian Stock Exchange (ASX), where some of the world’s most exciting hi-tech companies are listed. L. Granwal analysis at Statista put a Q2 2021 number to the Australian fintech segment at US $563m. The country is ranked #25 in the world on WIPO’s 2021 Innovation Index.

The industry is anticipating a significant boost as a byproduct of the times. The pandemic has created a tipping point in consumer culture that has been a disruptive accelerant that contributes to fintech’s rapid growth.

Below are the five fintech innovators on the ASX to look out for

Douugh (ASX:DOU)

Douugh is an Australian AI-driven fintech “neobank,” which is parlance for digital banking services. Douugh offers free banking services issued by partner banks, and provides subscription money management services to its users. Alternate revenue comes from an upsell to card services, where Dough earns transactional fees on its branded credit cards.

The company used a backdoor listing on the ASX, and has a relatively low market capitalization of just over $35m AUD with a capital raise of $6m AUD. According to simplywallstreet, the company brings in $1m US in yearly revenue, and its stock has dropped from a share price of $0.23 AUD to $0.051 AUD within one year. The company experienced a 15,533.55% revenue increase in one year, so there is some level of forward momentum despite limited cash reserves.

Gefen International (ASX:GFN)

Gefen is an Israeli fintech, launched in 2016, and later headquartered in Australia. The company’s B2B platform for financial services and insurance companies digitally unifies advisor/agent networks. Powered by AI, Gefen’s industry-specific services are deployed across internal and remote networks. The intelligent automation continuously improves customer experience, while at the same time drives sales. Gefen uses a transaction-based model at the point of sale between agent and end-customer.

In 2021, Gefen raised US $25m in its ASX IPO, with a $128m valuation. Today, the market cap is $69m. In 2021, Gefen’s end-customer base grew from 65,000 to 296,000, and agent customers grew from 1,332 to 2,210. In Q4 2021, Gefen signed on a number of prominent insurance companies, and is partnered with Sapiens International (Nasdaq/TASE:SPNS).

The stock price remains relatively static at present, which is likely due to the abstruse nature of B2B fintech. This technology is generally in the wheelhouse of sophisticated investors. The company is profitable, forging deals and making money. The market will eventually recognize the inherent value Gefen brings to fintech.

Sezzle (ASX:SZL)

Sezzle is a “buy-now-pay-later” (BNPL) service. As with Dough, Sezzle uses its technology platform to power its B2C financial services. Using the Sezzle mobile app, customers link their credit cards to the service. When a customer makes a purchase from a participating vendor, Sezzle foots most of the bill, and the customer pays zero-interest installments.

Sezzle is a US-based company that was founded in 2016. It’s IPO on the AUX raised US $30m on top of its prior private equity investment of US $17m. Today, Sezzle’s market cap is nearly US $255m ($352.4 AUD).

Sezzle is a complicated prospect because it is arguably in better shape than it might appear. Simplywall.st writes that Sezzle has high performing growth in revenue, with a positive forecast of almost 32% growth year over year. The overview also adds that the company has limited cash resources, but has been managing its debt well with short term liquidity.


Splitit (ASX:SPT)

Splitit is another BNPL, direct-to-consumer fintech. Splitit’s worldwide payment platform that enables customers to purchase items through Splitit’s system using their own legacy credit cards. Unlike other BNPLs, Splitit doesn’t issue its own branded cards for use of service.

Splitit was founded in Israel, and headquarters were later moved to the US. The company was launched in 2009 and went public on the ASX in 2019. Crunchbase reports that to date, the company raised approximately US $265 in financing. The company’s global business development and onboarding has been highly successful, but Splitit is still operating at a loss.

MoneyMe (ASX:MME)

MoneyMe provides convenient mobile-based credit services. The company’s AI platform accelerates and personalizes the loan process, with an application-to-transfer cycle in as little as one hour. MoneyMe offers fixed-interest loans up to $50,000 AUD. Interest rates are based upon credit worthiness. The loan is entirely based on credit rating, and there is no security necessary.

MoneyMe was founded in 2013, and went public on the ASX in 2019, with an IPO of $45m AUD. Total funding for the company is presently $388m AUD. Its performance numbers and assets are growing, but the company is still operating at a loss. Zoom lists revenue at $33m.

Summary

Stock performance might not reveal the entire picture when it comes to a company’s potential. We are living in volatile times politically and economically, but there is little doubt that online services are both the present and future. These five fintech’s are following the natural evolution of cultural behavior and adoption and are expected to increase in value over time.

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Wiz will pay $450 million to acquire Cloud Remediation Startup Dazz

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Wiz revealed on Thursday that it will buy channel-focused company Dazz in an agreement to add cloud remediation capabilities to the vendor’s cloud and AI security platform.

With features like application security posture management and continuous threat and exposure management, Dazz provides a remediation-focused cloud security platform.

Jared Phipps, a seasoned cybersecurity industry executive who most recently worked for SentinelOne, was hired by Dazz in February as its CRO as the business sought to expand its collaboration with channel partners. Presidio, situated in New York, has been one of the key partners.

Dazz said in July that it has raised a $50 million round of funding, increasing its total funding since its 2021 launch to $110 million.

Dazz provides a “industry-leading remediation engine,” according to a post published on Thursday by Wiz Co-Founder and CEO Assaf Rappaport, which will allow Wiz to “empower security teams to correlate data from multiple sources and manage application risks in one unified platform.”

This is Wiz’s third purchase overall and its second acquisition of 2024 after the company’s April acquisition of cloud detection and response provider Gem Security.

Wiz, a four-year-old startup, reported in May that it had raised $1 billion in new capital at a $12 billion valuation, citing its continued strong development in the cloud and AI security areas. Annual recurring revenue (ARR) for the business reportedly increased from $350 million earlier this year to above $500 million.

After making a number of management additions aimed at facilitating quicker partner-driven growth, Rappaport stated in February that Wiz would prioritize its channel operations moving ahead.

I“In cybersecurity partners are super, super important in the success of a company. So we’ve always [seen that] this has huge potential for us to tap into. I think there is so much more we can do,” he stated at the time.

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ProRata, an AI startup, Teams up with UK Publishers after reportedly Hitting $130 Million in Valuation

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A number of well-known British media outlets have joined ProRata, an AI firm that claims to compensate publishers for the usage of their work, in its expanding network of partnerships.

The Los Angeles-based firm announced on Wednesday that it has signed licensing deals with publishers such as Sky News, the Guardian, and the Daily Mail’s publisher, DMG Media.

In a recent Series A funding round, ProRata raised $25 million from investors such as the Mayfield Fund, Prime Movers Lab, and Revolution Ventures.

“ProRata’s founder and CEO Bill Gross said his firm’s AI technology is the only one that pledges to credit and compensate creators, while providing users with accurate search results.

“We have had hundreds of content owners and media companies reach out to us from around the world who are interested in piloting our technology. Stealing and scraping content is not a sustainable path forward,” he continued.

Similar alliances have previously been formed by ProRata with the German publisher Axel Springer, the Atlantic, Fortune, Time, and Universal Music Group (UMG).

Media firms are offered reasonable compensation by ProRata for the use of their content. The startup’s in-house technology may determine the proper amount of pay by evaluating the worth of the information used to create responses from an AI platform. This would make it possible to pay copyright holders for their work on a per-use basis.

Gross had previously said that AI platforms have been using “shoplifted, plagiarized content,” which fosters an atmosphere in which “disinformation thrives and creators get nothing.”

Gross is recognized for having created the pay-per-click model of internet search monetization with his business, GoTo.com, which was eventually acquired by Yahoo! in 2003.

In a recent blog post, Tige Savage, a cofounder of Revolution, stated that Bill Gross is a serial entrepreneur with extensive experience in monetization techniques.

“He’s attracted a world-class tech team led by AI luminary Tarek Najm to implement the vision and an accomplished business team, including Annelies Jansen and Jonas Lee to drive content and AI partnerships,” Savage continued.

The unpaid use of copyrighted materials by OpenAI and other tech companies to train their AI systems has led to litigation from media companies and other content creators.

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Film Bazaar Unveils an Interactive Cinema App from an Indian Tech Startup

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Arjun Nittoor, the founder of the Indian technology firm Vireza, disclosed at Film Bazaar that the company is creating a new mobile application that would transform the experience of watching movies in theaters by enabling viewers to engage with the films in real time.

The technology, which was created wholly in-house at the company’s research and development department in Bengaluru, allows viewers to use their smartphones to vote on important plot points during the movie. To keep up with the current screening, patrons download an app before entering the theater and scan a QR code at their seat.

“The film industry is one of the few sectors where the audience experience has seen minimal technological disruption in theatres,” Nittoor stated. “While screen and sound quality have advanced and 3D has been partially adopted, the viewing experience has largely remained the same for decades.”

The screen automatically brightens to show voting options and dims again when choices are made. The system uses discreet phone notifications to encourage audience participation around every ten minutes.

In 2026, Vireza intends to introduce the technology with a full-length interactive movie that will be produced in both English and South Indian for international distribution. The business is presently in the development stage and will shortly start doing multiplex chain trial screenings.

CtrlMovie’s prior success in the interactive film industry was mentioned by Nittoor. CtrlMovie is well-known for “Traces of Responsibility” and “Late Shift.”

In order to overcome the difficulties in cinematography, editing, shot composition, and writing that plagued previous attempts at the format, the firm has spent five years creating what Nittoor refers to as “a new science of filmmaking” that is especially tailored for interactive cinema.

“Despite the proliferation of viewing devices, big-ticket films continue to draw massive crowds to theatres, with box office numbers higher than ever,”  Nittoor stated. “This demand underscores the potential for a meaningful technology shift that could draw audiences out of their homes and into cinemas.”

Other Asian businesses are likewise investigating audience-driven narrative in motion pictures. In February of the following year, Japan’s King Records intends to release “Hypnosis Mic – Division Rap Battle,” an animated interactive film.

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