Southeast Asian payments company 2C2P reported an 83% drop in losses for the financial year ending December 31, 2023.
Founded in 2003 by Aung Kyaw Moe, the company operates across Asia, including markets such as Thailand, Hong Kong and India, serving clients such as Lazada, IKEA and Lenovo.
In June 2022, Ant Group 2C2PThe company is now valued at more than $590 million.
According to one analysis Deal Street Asia According to filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA), 2C2P recorded a loss of US$2.6 million in 2023, a significant improvement on the previous year.
The positive results were driven by a combination of moderate revenue growth and significant cost reductions.
The company expects revenue of US$130.9 million in 2023, up slightly from US$124.5 million in 2022, with the majority of this revenue coming from services.
This growth was largely due to strategic adjustments and updated financial reporting in the digital products segment.
The decline in loss was largely due to a 41% drop in employee benefit expenses to $19.45 million from $33.3 million a year earlier.
The reduction follows a one-time increase in 2022, when the company made additional investments in employee benefits and compensation to celebrate a company milestone.
Despite the cost reductions, 2C2P continues to invest in its employees, growing its headcount by 25% year-over-year in 2023.
Direct costs also decreased slightly to total US$91.5 million.
This included increases in service charges and bank fees of 44% and 40%, respectively.
Notably, there will be no spending on e-commerce in 2023, compared to US$27.7 million spent in 2022.
2C2P has raised nearly US$49 million in equity funding to date, with its most recent funding round taking place in 2020.
The company ended 2023 with a cash and cash equivalents balance of US$147.1 million, up 26.6% year-on-year.
