Expansion plan to keep I Synergy busy for next few years

KUALA LUMPUR: Malaysianbased technology company, I Synergy Group Ltd, which made its debut on Australian Stock Exchange (ASX) last week, has put its expansion plan in place that will keep it busy over the next couple of years.

The company, founded in 2008, owns proprietary affliate marketing platform, Affiliate Junction, which is used by advertisers in the marketing industry to connect with affiliates and facilitate commission payments from the advertisers to the affiliates.

I Synergy chief executive officer/managing director, Datuk Lawrence Teo, said the group managed to raise about A$3.7 million (RM3.35 per Australian dollar) from its ASX initial public offering (IPO) that will be used for expansion, develop its existing and new technology as well as for promotional activities.

He said between 35 and 40 per cent of the proceeds (A$400,000) from the IPO will be set aside for regional expansion such as in the Philippines which the company is eyeing at the moment, Australia, Thailand and Indonesia.

“We are in the midst of doing our market research on the Philippines and we see that e-commerce is widely being used there.

We see a burgeoning demand and would likely set up a regional office by year-end or early next year,” he told Bernama.

The company has set up regional offices in Australia and Indonesia with the intention of launching Affiliate Junction in these countries.

Some of the funds would also be used for research and development to improve the company’s system, said Teo.

On outlook, Teo said, the company was expected to break even for a year or two and subsequently to see profits after two or three years.

“The bulk of the revenue contribution of 95 per cent will come from the Malaysian market and the rest from Australia and Indonesia this year,” he said.

In 2016, I Synergy’s topline revenue stood at A$22 million and is expect to increase by between five and 10 per cent this year, mainly contributed by Malaysian market.

He said group also hoped to list on Bursa Malaysia when the e-commerce boomed in the country.

“Placing ourselves in the ASX was definitely a good move.

Once the timing is right, I think we can look for another listing in Malaysia within three years,” he said.

Teo said although e-commerce awareness was still low in Malaysia compared to Indonesia, there was still potential after the launch of the Digital Free Trade Zone last month. — Bernama