Logiq Initiates Major Restructuring Designed to Expand DataLogiq Business Unit and Unlock Value of Emerging Markets Initiatives

Logiq, Inc., a global provider of award-winning e-commerce and fintech solutions, forecasts strong growth ahead driven by both strategic M&A that will accelerate growth in its DataLogiq business, and the strategic spinoff of its emerging markets business units.

Over the past year, Logiq has acquired and integrated into DataLogiq three leading e-Commerce platforms. Through these key acquisitions, DataLogiq has become an e-Commerce industry leader in data-driven consumer intelligence and automated marketing technology.

These business units, led by Logiq Consumer Marketplace (LCM), are gaining traction on the customer front while also exploring steady opportunities on the strategic partnership and potential mergers and acquisitions side.

Tom Furukawa, CEO of Logiq, commented: “There are a large number of peers operating in our industry segment that are privately-held, generating solid revenue, operating profit and even net income, that could be acquired for compelling valuations while at the same time, offering accretive revenue growth, margins and earnings potential. We’re looking at a number of them currently and the pipeline is growing. Though we do not have any definitive agreements in place to make any such acquisitions at this current time, we firmly believe that growth through accretive acquisition is a strong path forward and endeavor to execute on it.”

As part of its M&A strategy, Logiq has begun to assess strategic alternatives, including a possible spinoff of its AppLogiq business within the next few months so it can better focus on DataLogiq’s abundant growth opportunities while AppLogiq focuses on the burgeoning emerging markets fintech opportunity. AppLogiq is the company’s mobile commerce platform-as-a-service (PaaS) and proprietary mobile fintech solutions that have been deployed in emerging international markets, primarily in Southeast Asia.

AppLogiq includes the PayLogiq™ e-Wallet, GoLogiq™ hyper-local food delivery, and other mobile eCommerce solutions, as well as a recently announced mobile fintech platform for microlending.

While AppLogiq’s business was severely impacted by the global pandemic, the last few quarters have seen a significant turnaround as it focuses on higher margin direct sales and delivering new mobile fintech services under major exclusive partnerships. In the company’s second quarter of 2021, AppLogiq gross profit increased 38% to $901,000 or 31.7% of revenue from $653,000 or 11.6% of revenue in the same year-ago quarter—a nearly 3x lift in gross margin.

Matthew Brent, chief strategy officer at AppLogiq, commented: “As the result of this strengthening momentum in key areas of its business, combined with the presence of PayLogiq and GoLogiq in Indonesia, we believe AppLogiq is now ready to stand on its own — where it would be in a better position to attract the right growth capital, along with investors who appreciate the vast opportunities it enjoys in today’s emerging markets.”

“Recent transactions between emerging markets companies and U.S.-listed SPACs, IPOs in the U.S., and merger and acquisition activity with notable companies, such as Grab Holdings and Altimeter Growth Company, FinAccel and Victory Park Capital, Bukalapak, SEA Holdings, Jumia and others, demonstrate valuations that firmly reflect the significant opportunity abroad,” continued Brent.

Furukawa added: “Given that we believe the equity markets have significantly undervalued AppLogiq’s proprietary IP and its turnaround, as well as our investment and shareholdings in Weyland Indonesia Perkasa (WIP), we believe it is in the best interests of our shareholders to realize the value of what AppLogiq has achieved by evaluating strategic alternatives, including through a possible strategic spinoff. We expect to make additional announcements in the near future as definitive plans are made under the guidance of expert advisors in such transactions.”