After changing its name, gaining adequate funding and being reinstated to the ASX, fintech and digital commerce company Ovanti (ASX: OVT), previously known as IOUPay (ASX: IOU), is finally returning to doing business after allegations of fraud and misappropriation of funds.
The Company has signed a major new contract through its subsidiary, iSentric (no affiliation with the iSignthis controversy), to provide Omni Channel Communications for CIMB Bank Berhad, a leading commercial bank in Malaysia ranked among the top three largest commercial banks by assets. The Bank operates consumer banking services across multiple markets, including Malaysia, Indonesia, Singapore, Thailand, Cambodia, and the Philippines.
As per the contractual agreements, iSentric will oversee SMS Broadcast and a comprehensive omnichannel marketing communication strategy for the Bank. iSentric will manage the Bank’s digital communication efforts across multiple channels including SMS, WhatsApp, social media, and In App, which are all underpinned by iSentric’s platform capabilities.
OVT Group Chairman David Halliday said, “These new contracts reflect the enduring strength of our long-term partnerships within the commercial banking sector in Malaysia and a testament to the faith the major commercial banks have in iSentric as a long term trusted technology partner now and well into future.
“The fact iSentric in this space represents significant banking institutions in Malaysia exemplifies iSentric’s positon as the the market leader and innovator in this sector. It is significant that iSentric in addition to the traditional SMS offering has shown it is able to pivot towards the future with our new customer, backing iSentric’s offerings across new emerging technologies such as WhatsApp and social media.”
iSentric internally forecast the combined value of these contracts to be worth approximately $4.8 million annually over the next three years. This milestone across multiple channels (including new emerging technologies such as WhatsApp and social media) reinforces iSentric’s position as a preferred partner for leading financial institutions investing in digital transformation.
OVT Director Gregory Woszczalski commented, “iSentric’s enhanced Omni Channel communication module represents a significant technological advancement achieved over the past year, poised to facilitate further collaborations with leading financial institutions and other key industry players.”
Last year, Ovanti, then IOUPay, was delisted for not providing its quarterly updates in time as it grappled with misappropriation of funds. As part of the requirements for relisting, on 22 January 2024 the Company lodged its outstanding reports for quarters ending March 31, 2023, June 30, 2023, September 30, 2023, and 31 December 2023. Plus, perhaps in an attempt to establish a new identity, on February 7, 2024, the Company changed its name from IOUPay to Ovanti.
In Q3 FY24, its total operating negative cash flow for the quarter was $536k as opposed to over $2 million in prior quarter. Its YTD customer receipts stood at $5.7 million, and it recorded a cash burn of $4.6 million. Over time, its Malaysian arm has performed relatively well. The Malaysian business unit was positive cash flow and is expected to continue to generate positive cash in future quarters.
Ovanti’s latest contracts expand iSentric’s collaboration to now encompass relationships with five of Malaysia’s top ten banks. In addition to iSentric, the Company also has tie-ups with Bank Islam, Bank Rakyat and BSN Bank.
Alinda is a Business Reporter for The Sentiment
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