Value Creation Case Studies

Tranglo Sdn Bhd

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Tranglo Sdn Bhd

Background

  • Incorporated in 2009 with headquarters in Kuala Lumpur, and international offices in Indonesia, Middle East, and the United Kingdom.
  • Provides the platform for mobile telecommunication companies (Telcos) to facilitate cross border transfer of prepaid credit and money remittance in a fast, easy and secure manner.
  • Expanded services to local and international money remittance companies.

Investment Rationale

  • An industry pioneer with a strong track record and longstanding relationships with Malaysian and global Telcos.
  • A growing business in cross border mobile money remittance services, which offers significant potential

Transaction Details

Investment type
Majority investment in a strong Malaysian company
Acquisition Date
March 2015
Ownership
60.0%

Key Value Creation Metrics

  • Growth Strategy

    • Pivoting of revenue base from a previously airtime transfer focused business to the higher growth cross border money remittance space
    • Actively pursued high volume international money remittance companies to diversify concentration risk
    • Repurposed working capital funds into higher yield business, switch from airtime loan to money remittance
    • Transformation from white label to private label offering via acquisition of a Malaysian Money Service Business license
    • Money remittance volume observed a growth of >20x since acquisition date with over 50% GP contribution to the Company

  • Operational Improvements

    • Aligned Company’s salary structure to market benchmark
    • Improved reconciliation process of inventory balance on supplier and company side through set up of a dedicated team and automation of error identification
    • Implementation of Treasury Management System allowing for efficient fund management across more than 100 bank accounts in its respective operating countries

Ekuinas has been very supportive of the Company’s growth initiatives, providing the necessary funding when required to achieve the milestones it has seen to date.

Teo Wei Min

Chief Financial Officer