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TGL: Leveraging Growing ASEAN Digital Economies via New Products, Expansions


By M. Marin



Tapping into the growing Malaysian & ASEAN digital economies …

Treasure Global Inc (NASDAQ:TGL) is a Malaysian emerging technology company developing solutions to facilitate e-commerce and e-payments for consumers and provide an ecosystem for merchants to enable digital sales and leverage digital management tools. The company expects to benefit from economic growth in its target ASEAN markets, particularly their expanding digital economies. For example, GDP in Malaysia is projected to reach US$680 billion by 2030, while its digital economy grew 13% y/y in 2022 to $21 billion, and is expected to reach or exceed $35 billion in 2025.

TGL launched the ZCITY app and TAZTE platform and has a travel platform under development. The ZCITY App simplifies e-payments for consumers, while simultaneously allowing them to earn rewards. TGL AI-based technology enables ZCITY to offer personalized promotions based on the user’s purchase history, which TGL views as a critical differentiating factor for ZCITY.

Technology platform to help F&B industry with efficiencies, scale & customer service

TAZTE is a digital F&B management system enabling merchants to digitalize their businesses, including providing tools to manage inventory, procurement and other functions. TAZTE is designed to help F&B merchants improve efficiencies and leverage analytics software to generate customized offerings to attract and retain consumers and enhance profitability. TGL expects operators in the F&B space will find the company's more than 2.4 million users, technology and promotional efforts appealing.

In addition, with partner VCI Global Limited, TGL also has a travel platform under development. Malaysia averaged annual international tourist spending of $R80+ billion in the 5-years pre-pandemic and domestic tourist spending reached $R64.1 billion in 2022, up from $R18.4 billion in 2021.

Expanding user base as new products launch & partnerships are added…

TGL’s 2.4+ million registered users and 2,008 registered merchants (as of March 2023) increased from 2.3+ million and 1,998, respectively, at December 2022. Reflecting growth of the user and merchant bases, revenue increased from $14 million in FY 2021 to about $79.7 million in FY 2022 and the company expects several recent partnerships to facilitate recurring revenue growth. Offering e-vouchers has been a successful way for TGL to grow its user base. Going forward, in order to boost margins, TGL plans to leverage alternate ways to encourage higher transaction levels and user loyalty and lessen its dependence on e-vouchers, which could dampen near-term revenue growth.

… With regional expansion planned…

TGL’s strategy is to deepen operations in Malaysia and also expand into additional ASEAN markets. Indonesia, for example, has a population over 8-times that of Malaysia's and an internet penetration rate exceeding 60% (World Bank). To expand internationally, TGL expects to partner with local businesses and affiliates and recently formed an e-commerce JV in Indonesia to promote the ZCITY app.

The company also expects that TAZTE can facilitate its expansion into new markets as merchants on the platform pursue their own expansions. TGL also expects TAZTE will enable the company to become a 'virtual master franchisor' of Southeast Asian F&B chains. Recent agreements give TGL exclusive rights to act as master franchisor for certain local restaurant chains and TGL expects to add new agreements, as well.

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