2C2P, a Southeast Asian payments company, reported a 83% reduction in losses for the fiscal year ending 31 December 2023.
The company, established by Aung Kyaw Moe in 2003, operates across Asia, including markets such as Thailand, Hong Kong, and India, and caters to clients like Lazada, IKEA, and Lenovo.
In June 2022, Ant Group acquired a majority stake of over 80% in 2C2P, valuing the firm at more than US$590 million.
According to an analysis by DealStreetAsia based on filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA), 2C2P recorded a loss of US$2.6 million in 2023, a significant improvement compared to the previous year.
This positive outcome is due to a combination of moderate revenue growth and substantial cost reductions.
The company’s revenue for 2023 increased slightly to US$130.9 million from US$124.5 million in 2022, with the majority of this income derived from services.
This growth is partly due to strategic adjustments in the digital goods segment and updated financial reporting.
A significant factor in the reduced losses was a 41% decline in employee benefit expenses, which amounted to US$19.45 million, down from US$33.3 million in the previous year.
This 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 the reduced expenses, 2C2P expanded its workforce by 25% year-on-year in 2023 and remains committed to investing in its employees.
Direct costs also experienced a slight decrease, totaling US$91.5 million.
This included increases in service fees and bank charges, which rose by 44% and 40% respectively.
Notably, there were no expenditures on e-merchandise in 2023, contrasting with the US$27.7 million spent in 2022.
To date, 2C2P has raised close to US$49 million in equity funding, with its most recent funding round occurring in 2020.
The company ended 2023 with US$147.1 million in cash and cash equivalents, a 26.6% increase from the previous year.
