Ant Group-backed 2C2P’s profit, revenue narrow in 2021

2C2P, a Singapore-based payments platform, posted a revenue of US$112.9 million for the financial year ended December 31, 2021 – a 7.8% decrease from the previous year.

The firm, which has been profitable since 2019, saw its net profit fall by 10.5% to US$549,300 between 2020 and 2021.

The payments firm helps companies accept and process various payment methods, from e-wallets, domestic payment networks, to buy now, pay later. The company is also a wholesaler of digital goods – it purchases digital codes from telco and gaming companies in bulk and sells them in retail. This is recorded in its financial statement as “e-merchandise sales.”

In 2020, 2C2P’s revenue from e-merchandise sales became its dominant topline contributor, overtaking revenue from the “rendering of services,” which refer to the firm’s payment business.

As a result, direct costs, which include bank charges, service fees, and the purchase of e-merchandise, also grew at a faster rate compared to revenue.

When the trend reversed in 2021 and the payments segment became the firm’s primary earner again, direct costs also decreased at a faster rate.

This could imply that having payment and services as a main driver of revenue over e-merchandise sales is healthier for the firm’s bottom line.

A company spokesperson tells Tech in Asia that the decrease in e-merchandise sales was partially the result of a “change in business mix” and the needs of its customers.

The spokesperson adds that “shifting market conditions” hurt the sales of e-merchandise for a period, but the firm expects a rebound amid increased regional consumer demand.

2C2P also said that payments will continue to be the focus of its product offerings and the core driver of the firm’s revenue.

Covid-19 impact

The firm, which counts online travel companies, airlines, and ecommerce firms among its clients, is optimistic on its business prospects as Southeast Asia emerges from the pandemic.

“Throughout Covid-19, we saw some of our customers, like airlines and the travel industry, suffering. At the same time, marketplaces, ecommerce players, and insurance players thrived,” CEO Aung Kyaw Moe said in July.