Photo credit: 2C2P
After three profitable years, Singapore-based payments platform 2C2P has logged US$15.9 million in losses in 2022. The reversal came despite a 10.3% year-on-year increase in revenue to US$124.5 million.
A primary reason behind the change appears to be employee benefits expense – at US$33.2 million, it more than doubled compared to 2021. Direct costs and other operating expenses also grew.
In a statement to Tech in Asia, a 2C2P spokesperson said that the company is “committed to investing in talent and offering competitive compensation and benefits.”
Outside of employee benefits, “the company’s operational expenses remained consistent with those of 2021,” the spokesperson added. “2C2P’s business performance remains unaffected and is expected to grow and continue being profitable in 2023.”
The spokesperson noted that 2C2P posted a 34% compound annual growth rate over the past five years. Its net operating cash flow jumped roughly 2.7x year on year compared to 2021, with US$116.2 million in cash and cash equivalents as of end-2022.
The payments firm’s majority backer is Chinese fintech giant Ant Group. The deal, which was announced in April 2022, plugged 2C2P’s merchant pool into Alipay+.
Aside from Ant Group, 2C2P has partnered with the likes of ShopeePay and Pine Labs over the past year. It is also expanding to Cambodia through a deal with AMK Microfinance Institution while partnering with the Bank of Thailand on the latter’s central bank digital currency trial.
See also: ‘My job is to fix the problem of my customers’: fintech execs discuss early strategies
Editing by Putra Muskita and Lorenzo Kyle Subido
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
