ShopBack’s losses widen amid revenue decline, one-off expenses

IN FOCUS

In today’s newsletter, we look at:

• What ShopBack’s latest financials say about its voucher business
• Why Shopee took a former employee to court – and lost
• How Indonesia’s presidential elections could affect the ban on social commerce transactions

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Hi there,

Everyone likes a free lunch. My poison is airline miles – I’ll buy vouchers to dine at a restaurant just to earn nine miles per dollar from Kris+, the lifestyle rewards app run by Singapore Airlines.

Others may use apps like ShopBack to earn cashback on their purchases and other rewards.

Singapore-based ShopBack also sells vouchers that people can use to make purchases. In its most recent financial year ended March 2023 (FYE 2023), revenue from selling these vouchers accounted for 41% of the company’s overall figure, the second biggest item after revenue from commissions.

As my colleague Samreen explores in this week’s big story, selling such vouchers remains a “significant and growing” part of ShopBack’s business in selected markets. However, the company is also trying to break into new businesses, such as buy now, pay later (BNPL).

Yet, these initiatives come with risks. ShopBack cited an impairment of goodwill arising from the acquisition of BNPL startup Hoolah as one of the reasons for its widening losses in FYE 2023.

We all like a free lunch, although someone always ends up footing the bill.

— Simon

THE BIG STORY

ShopBack feels the pinch as voucher revenue dips 50% in FY23

Image credit: Timmy Loen

While it has closed its pay-later business in Thailand, the cashback and rewards platform is expanding to Germany.

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