Digital gift-card giant Prezzee eyes stock market float

Digital gift-card giant Prezzee eyes stock market float

Prezzee co-founders Claire Morris and Matt Hoggett.

Leading digital gifting platform Prezzee is considering a stock-market float as it seeks to capitalise on investor attention in the payments and fintech space following the $39 billion acquisition of buy-now pay-later company Afterpay (ASX: APT).

Co-founded by Claire Morris and Matt Hoggett, the merchant of digital gift cards for retailers such as Amazon, Apple and David Jones says it is looking into funding options which could include an initial public offering (IPO).

Attention on the fintech and payments sector from investors has sparked this new direction for Prezzee, according to CEO Tony Karp.

The CEO says Sydney-based Prezzee is cash-flow positive right now but is looking for additional funding to accelerate growth.

The company hopes to take a larger slice of a booming global gift-card market. Internal research suggests the sector could grow from US$619.2 billion (AUD$838 billion) in 2019 to US$2.08 trillion (AUD$2.81 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," says Karp.

Prezzee is 85 per cent 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 also 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 FY21 and $6.4 million in FY20.

The company operates in the US 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.

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