Fintech
Ant Group’s 2C2P Cuts Losses by 83% in 2023
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2C2P, a Southeast Asian payments company, reported an 83% reduction in losses for the fiscal year ended December 31, 2023.
The company, founded by Aung Kyaw Moe in 2003, operates across Asia, including markets such as Thailand, Hong Kong and India, and serves customers such as Lazada, IKEA and Lenovo.
In June 2022, Ant Group acquired a majority stake of over 80% in 2C2Pestimating the company’s value at over $590 million.
According to an analysis by OffersStreetAsia According to documents filed with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore, 2C2P reported a loss of $2.6 million in 2023, a marked improvement from the previous year.
This positive result is due to the combination of moderate revenue growth and substantial cost reductions.
The company’s revenue for 2023 increased slightly from $124.5 million in 2022 to $130.9 million, with the majority of this revenue coming from services.
This growth is due in part to strategic adjustments in the digital assets segment and updated financial reporting.
A significant factor in the narrowing of losses was a 41 percent decline in employee benefits expenses, which totaled $19.45 million, down from $33.3 million a year earlier.
The reduction followed a one-time increase in 2022, when the company made additional investments in employee benefits and compensation to celebrate a company milestone.
Despite reducing expenses, 2C2P grew its workforce by 25% year-over-year in 2023 and remains committed to investing in its employees.
Direct costs also decreased slightly, totaling $91.5 million.
This resulted in increases in service fees and bank charges of 44% and 40%, respectively.
Notably, there were no e-merchandise spending in 2023, compared to $27.7 million spent in 2022.
To date, 2C2P has raised approximately $49 million in equity funding; its last funding round occurred in 2020.
The company closed 2023 with $147.1 million in cash and equivalents, up 26.6% from the prior year.