Cashlez, an Indonesia-based digital payment technology provider backed by corporates Sumitomo and Bank Mandiri, has completed a R87.5bn ($5.8m) initial public offering on the Indonesia Stock Exchange, DealStreetAsia reported yesterday.
The amount fell short of Cashlez’s $7.3m projection although its share price did climb from $0.023 to $0.025 within four minutes of trading.
Founded in 2015, Cashlez supplies Bluetooth-equipped card payment terminals that let merchants process customer transactions via a mobile app.
The terminals also support digital payment methods like matrix barcodes and Cashlez’s mobile wallet service.
Cashlez will use around 61% of the IPO proceeds to pursue an acquisition of smart card technology supplier Softorb Technology. The remainder will be used for working capital.
Cashlez believes buying Softorb will aid its expansion, bringing its client base to 10,000 by the end of 2020 from about 7,000 at present. About 88% of its customers are micro, small and medium-sized enterprises.
Diversified conglomerate Sumitomo joined Mandiri Capital, the VC arm of financial services firm Bank Mandiri, for Cashlez’s series A round of undisclosed size in April 2019, after Mandiri Capital had led a $2m seed round for the business in 2017.
Cashlez’s earliest funding was a contribution of undisclosed size from investment management firm Gan Kapital, according to DealStreetAsia.