HomeNEWSAustralia’s number one cutting-edge digital gifting platform, Prezzee eyes stock-market float

Australia’s number one cutting-edge digital gifting platform, Prezzee eyes stock-market float

Sydney-based digital gift-card provider Prezzee is considering a stock-market float as it seeks to capitalise on investor attention in the payments industry. 

Prezzee sells digital gift cards for retailers globally, including Amazon, Apple, and David Jones and is looking into funding options which could include an initial public offering, in light of Square Inc.’s planned US$29 billion acquisition of Australian payments company Afterpay Ltd., which was announced in August.

CEO Tony Karp states that Prezzee is cash-flow positive, but could look for additional funding to accelerate growth. Estimates vary on the size of the global gift-card market, but research cited by Prezzee says it could grow from US$619.2 billion in 2019 to US$2.08 trillion by 2027.

“Recent corporate activity, including that involving Afterpay, has obviously got the attention of the board. Our growth plans can be broadened to include Asia and China and a public company model may assist those outcomes,” Karp explains.

Prezzee is 85% owned by Precision Group, a private property investment, and management company led by Australian billionaire Shaun Bonett, with the remainder held by Prezzee’s co-founders and directors.

Karp revealed that Prezzee is on track to process more than $1 billion Australian dollars in corporate and retail cards in its 2022 fiscal year, up from about $430 million in 2021. 

Prezzee, which passes the payment directly to the retailer while retaining a margin, anticipates revenue of about $55 million in fiscal 2022. That compares with $20.2 million in fiscal 2021 and $6.4 million in fiscal 2020. 

The company operates in the U.S and the UK, with plans to launch in France and Germany in the 2022 calendar year. Prezzee recently entered a global partnership with Mastercard Inc. that could tap more customers via the card giant’s loyalty and engagement services.

“Digital redemptions are key to driving engagement, and Prezzee is a natural fit,” Mastercard said in a statement.

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