Investment Opportunity:
Project Gallant
About Project Gallant
Project Gallant is a private equity opportunity to invest into a leading Southeast Asian Payments SaaS/platform. Gallant offers full-service eGiftcard, Rewards, Loyalty and Employee Engagement solutions. It is fast-growing, profitable, highly cash generative and pays dividends.
Key Investment Highlights*
- 51.8% Net Revenue CAGR and 60.6% PBT CAGR respectively over a 4-year period from 2020 to 2024 despite the challenges of COVID-19.
- PBT increased by 60% between 2022 and 2023 to USD6.0m with earnings tailwinds from scaling.
- PBT margins of c.60-80% historically. The Business has earnings tailwinds given expiry revenue and investment income are increasing as a function of their recent scale.
- PBT increased by 28.9% in 1H 2024 y-o-y. Full year 2024 is forecasted to achieve PBT of USD8.1m, a 36.2% growth on prior year.
- Capital efficient and highly cashflow generative business model with minimal capital raised and a historical track record of significant dividends. Cash position of USD17.5m as of Jun-24, with c.USD2m of dividends paid in May.
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Note: 2020-2022 audited by GPP & Co. 2023 currently being audited by KPMG. Including due diligence adjustments from PwC, and Aura.
- Blue chip and diversified customer base with over 500 corporate customers and 492 merchants. The top 15 corporate customers comprise less than 37% of revenue in 2023.
- Evidence of strong product lead growth with brand network effects, high net revenue retention, low churn, low CAC, resulting in LTV/CAC of 73x in 2023.
- Exhibits extremely high net revenue retention indicating superior quality of product and continuous improvement. 2021 cohort is approx. 200% and 2022 cohort 144%.
- Expansion into new regional markets, currently in ongoing discussion with existing MNC client for voucher distributions in Singapore.
- Strong ESG and alignment to SDG goals with Gallant’s financial technology enabling financial inclusion to the masses and social elements of more directed spend. Through its work, Gallant also supports the UN Sustainable Development Goals.
- Strong evidence of alignment to Aura Private Equity time machine investment thesis showing time-lag to Singapore, South Korea and China, where the payments, transaction processing, digital gift card and rewards and loyalty space is highly developed.
- Favourable local landscape dynamics, with the Philippines being the fastest growing economy within Southeast Asia in 2023 (5.6% p.a. growth) and a consumer base population of over 110m**. Strong macroeconomic tailwinds are buoyed by growing consumption through rising affluence, growing literacy rates and rising employment.
* Based on management accounts and PwC due diligence report. Historical performance is not an indication of future performance
** Based on report from McKinsey (The Philippines economy in 2024, March 2024)
Investment Opportunity
The Aura Asia Growth Fund is a Singapore Variable Capital Company (VCC) sub-fund that will invest in Gallant via preferred shares and is seeking to raise up to USD25m. Assuming we raise sufficient capital, these shares will benefit from a liquidity preference with a minimum IRR of 8% p.a. and will be structured with board representation, reserved matters, sunset clauses and other minority protections.
- Structure: Singapore VCC Sub-Fund
- Transaction Type: Southeast Asian Mid-Market Private Equity
- Fund Size: Up to USD25m
- Fund Auditor: EY
- Transaction Structure: Preferred shares with minimum IRR
- Target Returns (net of fees and costs)*:
- Base Case: 32.4% IRR, 3.7x MOIC
- Low Case: 20.6% IRR, 2.4x MOIC
- High Case: 45.7% IRR, 5.8x MOIC
- Dividend Yield: Approx 7% p.a. forecasted to rise to 19.8% p.a.
- Term: 5 years, extendable by 1 year by the Fund Manager and 1 additional year with majority investor approval.
* Based on analysis undertaken by Aura Private Equity, explained in offering documents. Returns are not guaranteed.
If you would like to learn more about this investment opportunity, please request the information pack or speak to the team.
This opportunity is available for Wholesale and Sophisticated Investors only, as defined by the Corporations Act 2001.
Important Information
This information is provided in Singapore by Aura Group (Singapore) Pte Ltd (Registration No 201537140 R) which is regulated by the Monetary Authority of Singapore (MAS) as a holder of a Capital Markets Services License, is of a general nature only, intended for accredited or institutional investors only and should not be disclosed or redistributed to any other person. Aura Capital Pty Ltd AFSL No 366 230 ABN 48 143 700 887, a related entity, is arranging the offer of this product by Aura Group (Singapore) Pte Ltd in Australia.
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