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Maxim: Society Pass (Nasdaq: SOPA) - 4Q21 Results and Outlook; Expansion Starts in the Attractive Southeast Asia Ecommerce Market

New York, NY - (NewMediaWire) - April 1, 2022 - Maxim Group LLC (“Maxim”) issues Equity Research Report on Society Pass Inc. (Nasdaq: SOPA).


Click Here to view full Maxim Group LLC Equity Research Report.



·       4Q21 results reported Wednesday (3/30) but the results were not meaningful given product launches and recent acquisitions. The company also filed its 10-K.

·       Leflair, an online seller of luxury goods, was relaunched in September 2021 in Vietnam and was the main revenue contributor.

·       Maxim maintains estimates, which incorporate two recent acquisitions providing online grocery and restaurant delivery in Vietnam and the Philippines.

·       The company ended 2021 with $23M cash and no debt. With proceeds from an IPO and secondary offering, Maxim estimates cash of $33M.

4Q21 results highlight early stages of building a Southeast Asian ecommerce company. Society Pass is in the early stages of building an online company. Maxim has a positive view on this market given faster-than-expected growth rates, increasing mobile and ecommerce penetration, younger populations, and the opportunity to consolidate smaller companies. In 4Q21, most of the company's revenue came from the online ordering segment, which generated $0.4M in revenue for the quarter and $0.5M for the year.

Sufficient cash. The company ended 2021 with $23M in cash and no debt. Cash included the net $25M raise from the company's November 2021 IPO. Including $10.7M net from a February 2022 raise, Maxim estimates current cash of ~$33M, which in Maxim’s view should be sufficient to fund organic growth over the next two years.

Acquisitions. A key component of the company's strategy revolves around strategic acquisitions in key verticals.

· Pushkart – acquired 2/14/22, is a fast growing grocery delivery service in the Philippines with 125K registered users. SOPA plans to expand the service into 19 cities and increase the registered user base to 300K total by the end of 2022. The company reported $650K of revenue in 2021.

· Handycart – acquired 2/25/22, is an online food delivery business based in Hanoi, Vietnam. The company currently has about 40 restaurants, mainly centered around Korean cuisine, registered on its platform. In 2022, SOPA plans to expand the offering into Ho Chi Minh City and bring the number of restaurants on the platform to 500, with the addition of Japanese and Chinese cuisines.

Maxim projects significant revenue growth for the next two years. Maxim also expects growth from the expansion of Leflair and the launch of Loyalty Points in mid-2022. Maxim also factors and Handycart, primarily starting in 2Q22. Maxim maintains estimates for revenue to increase from $0.5M in 2021, to $14.5M in 2022, to $38.2M in 2023. Maxim also anticipates the company will be aggressive in M&A, which will likely provide upside to Maxim’s estimates.

Compelling valuation. SoPa trades at an EV/revenue multiple of 1x Maxim’s 2023 revenue estimate. Maxim’s $9 PT is based on Maxim’s 10-year DCF analysis in which Maxim utilizes a 20% discount rate, 15x terminal multiple, and a 3% terminal growth rate. Maxim’s $9 PT equates to 4.5x Maxim’s 2023 revenue estimate, a premium to the peer group average of 3.1x. The premium is warranted, in Maxim’s view, due to the higher expected growth rate.

About Society Pass

Society Pass is a loyalty and data marketing ecosystem that operates multiple e-commerce and lifestyle platforms across its key markets. Its business model focuses on collecting user data through the expected circulation of its universal loyalty points. It seamlessly connects consumers and merchants across multiple product and service categories fostering organic loyalty. Since its inception, SoPa has amassed over 1.6 million registered consumers and over 5,500 registered merchants/brands on its platform.It has invested 2+ years building proprietary IT architecture with cutting edge components to effectively scale and support its Platform’s consumers, merchants, and acquisitions.

Society Pass provides merchants with #HOTTAB Biz– a convenient order management app for business partners on In addition, SoPa operates, Vietnam’s leading lifestyle e-commerce platform,, a popular grocery delivery company in Philippines, and, a leading online restaurant delivery service based in Hanoi, Vietnam.


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PRecious Communications for SoPa


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