Kaspi.kz Responds to Investor Questions
Kaspi.kz, a leading financial technology company in Kazakhstan, has responded to investor questions, providing key insights into its business operations and regulatory compliance efforts. The company highlighted that 99.6% of its 2023 revenue was generated in Kazakhstan, with minimal revenue from Azerbaijan and Ukraine. Kaspi.kz emphasized its robust 'know your customer' (KYC) processes and strict adherence to international sanctions lists.
The company clarified that only 2.8% of customer account balances come from non-residents of Kazakhstan, and just 0.3% of Marketplace GMV is from non-resident purchases. Kaspi.kz also addressed its acquisitions, including the classifieds business in Azerbaijan and Portmone in Ukraine. The company disclosed its 90.01% stake in Magnum e-Grocery, with a commitment to invest KZT 70,000 million over three years.
Kaspi.kz, una delle principali aziende di tecnologia finanziaria in Kazakistan, ha risposto alle domande degli investitori, fornendo informazioni chiave sulle sue operazioni aziendali e sugli sforzi di conformità normativa. L'azienda ha messo in evidenza che il 99,6% delle sue entrate del 2023 è stato generato in Kazakistan, con entrate minime dall'Azerbaigian e dall'Ucraina. Kaspi.kz ha sottolineato i suoi solidi processi di 'conosci il tuo cliente' (KYC) e la rigorosa aderenza alle liste internazionali di sanzioni.
L'azienda ha chiarito che solo il 2,8% dei saldi dei conti dei clienti proviene da non residenti in Kazakistan, e solo lo 0,3% del GMV del Marketplace è costituito da acquisti di non residenti. Kaspi.kz ha anche affrontato le sue acquisizioni, inclusa l'attività di annunci in Azerbaigian e Portmone in Ucraina. L'azienda ha rivelato di detenere una partecipazione del 90,01% in Magnum e-Grocery, impegnandosi a investire 70.000 milioni di KZT in tre anni.
Kaspi.kz, una de las principales empresas de tecnología financiera en Kazajistán, ha respondido a las preguntas de los inversores, ofreciendo información clave sobre sus operaciones comerciales y sus esfuerzos de cumplimiento normativo. La compañía destacó que el 99,6% de sus ingresos de 2023 se generaron en Kazajistán, con ingresos mínimos de Azerbaiyán y Ucrania. Kaspi.kz enfatizó sus robustas 'conoce a tu cliente' (KYC) y su estricta adherencia a las listas de sanciones internacionales.
La compañía aclaró que solo el 2,8% de los saldos de las cuentas de los clientes provienen de no residentes en Kazajistán, y apenas el 0,3% del GMV de Marketplace es de compras de no residentes. Kaspi.kz también abordó sus adquisiciones, incluida la empresa de clasificados en Azerbaiyán y Portmone en Ucrania. La compañía reveló que posee un 90,01% de participación en Magnum e-Grocery, con un compromiso de invertir 70.000 millones de KZT en tres años.
Kaspi.kz는 카자흐스탄의 주요 금융 기술 회사로서 투자자 질문에 응답하며 비즈니스 운영 및 규제 준수 노력을에 대한 핵심 통찰력을 제공했습니다. 이 회사는 2023년 수익의 99.6%가 카자흐스탄에서 발생했으며, 아제르바이잔과 우크라이나에서의 수익은 미미하다고 강조했습니다. Kaspi.kz는 견고한 '고객 알기'(KYC) 프로세스와 국제 제재 목록에 대한 엄격한 준수를 강조했습니다.
이 회사는 고객 계좌 잔액의 2.8%만이 카자흐스탄 비거주자에게서 온 것이라고 명확히 했으며, 마켓플레이스 GMV의 0.3%만이 비거주자 구매로부터 왔다고 밝혔습니다. Kaspi.kz는 또한 아제르바이잔의 분류 광고 사업과 우크라이나의 Portmone를 포함한 인수에 대해서도 언급했습니다. 이 회사는 Magnum e-Grocery에서의 90.01%의 지분을 보유하고 있으며, 3년 동안 70,000백만 KZT를 투자하겠다고 약속했습니다.
Kaspi.kz, une entreprise de technologie financière leader au Kazakhstan, a répondu aux questions des investisseurs en fournissant des informations clés sur ses opérations commerciales et ses efforts de conformité réglementaire. L'entreprise a souligné que 99,6 % de ses revenus de 2023 provenaient du Kazakhstan, avec des revenus minimes d'Azerbaïdjan et d'Ukraine. Kaspi.kz a mis en avant ses solides processus de 'connaître votre client' (KYC) et son respect strict des listes de sanctions internationales.
L'entreprise a précisé que seulement 2,8 % des soldes des comptes des clients proviennent de non-résidents du Kazakhstan, et seulement 0,3 % du GMV du Marketplace provient d'achats de non-résidents. Kaspi.kz a également abordé ses acquisitions, notamment l'activité d'annonces en Azerbaïdjan et Portmone en Ukraine. L'entreprise a révélé sa participation de 90,01 % dans Magnum e-Grocery, avec un engagement d'investir 70 000 millions de KZT sur trois ans.
Kaspi.kz, ein führendes Unternehmen für Finanztechnologie in Kasachstan, hat auf Fragen von Investoren geantwortet und wichtige Einblicke in seine Geschäftstätigkeiten und Bemühungen um die Einhaltung von Vorschriften gegeben. Das Unternehmen hob hervor, dass 99,6% seiner Einnahmen im Jahr 2023 in Kasachstan generiert wurden, wobei die Einnahmen aus Aserbaidschan und der Ukraine minimal waren. Kaspi.kz betonte seine robusten 'Know Your Customer' (KYC)-Prozesse und die strikte Einhaltung internationaler Sanktionslisten.
Das Unternehmen stellte klar, dass nur 2,8% der Kundenguthaben von Nichtansässigen in Kasachstan stammen und nur 0,3% des GMV des Marktplatzes aus Käufen von Nichtansässigen stammen. Kaspi.kz sprach auch über seine Übernahmen, einschließlich des Kleinanzeigen-Geschäfts in Aserbaidschan und Portmone in der Ukraine. Das Unternehmen gab bekannt, dass es 90,01% der Anteile an Magnum e-Grocery hält, mit der Verpflichtung, in drei Jahren 70.000 Millionen KZT zu investieren.
- 99.6% of 2023 revenue generated in Kazakhstan, demonstrating strong domestic market presence
- Robust KYC processes and strict compliance with international sanctions lists
- Only 2.8% of customer account balances from non-residents, indicating low exposure to foreign risks
- Acquisition of leading classified platforms in Azerbaijan, with 46% CAGR in revenue between 2020 and 2023
- 90.01% stake acquisition in Magnum e-Grocery, with KZT 70,000 million investment commitment over three years
- e-Grocery GMV up 111% year-over-year to KZT56,900 million in H1 2024
- None.
Insights
This response from Kaspi.kz addresses several key points that are relevant to investors:
- Revenue breakdown:
99.6% of 2023 revenue came from Kazakhstan, with minimal contributions from Azerbaijan and Ukraine. - Regulatory compliance: The company has strict KYC processes and policies to avoid working with sanctioned entities or individuals.
- Customer base: Only
2.8% of customer account balances are from non-residents and just0.3% of Marketplace GMV comes from non-resident purchases. - Acquisitions and investments: Details on the Azerbaijan classifieds business acquisition (
KZT11,988 million ), Portmone acquisition and the90.01% stake in Magnum e-Grocery (KZT70,000 million investment commitment).
These disclosures aim to address potential investor concerns about regulatory compliance, revenue sources and growth strategies. The focus on local operations and strict compliance measures could be seen positively by investors concerned about geopolitical risks. However, the need for such a detailed response suggests there may have been market concerns or scrutiny that prompted this clarification.
Kaspi.kz's response provides valuable insights into its market position and growth strategies:
- Dominant position in Kazakhstan: With
99.6% of revenue from the local market, Kaspi.kz is deeply entrenched in Kazakhstan's financial ecosystem. - International expansion: While , the company has footholds in Azerbaijan (classifieds) and Ukraine (Portmone), indicating cautious international growth.
- E-grocery focus: The significant investment in Magnum e-Grocery (
KZT70,000 million ) and its rapid growth (111% YoY GMV increase) highlight a strategic push into this sector. - Super App model: The emphasis on their two-sided Super App approach (consumer and merchant) suggests a focus on creating a comprehensive digital ecosystem.
These factors indicate a company with a strong local foundation, exploring targeted international opportunities and diversifying into high-growth sectors like e-grocery. The detailed disclosures also suggest a commitment to transparency, which could positively influence investor sentiment.
ALMATY, Kazakhstan, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Kaspi.kz’s mission is to improve people’s lives by developing innovative mobile products and services. To deliver upon this we operate a unique two-sided Super App model – Kaspi.kz Super App for consumers and Kaspi Pay Super App for merchants. We are proud of the business we have built, which we are continuing to grow by serving consumers and businesses across Kazakhstan.
Here are some important facts we think you should know about our business and our robust efforts to ensure local and international regulatory compliance.
We generate
As disclosed in our US IPO prospectus and in our 20F,
| For the year ended December 31 | |||||
| 2022 | 2023 | 2023 | |||
| (in ₸ million) | (in $ million) | ||||
| Kazakhstan | 1,264,040 | 1,905,093 | 4,191 | ||
| Azerbaijan | 2,726 | 3,742 | 8 | ||
| Ukraine | 3,826 | 4,655 | 10 | ||
| Total revenue | 1,270,592 | 1,913,490 | 4,210 | ||
We have comprehensive policies and procedures designed to avoid working with any consumers or companies that appear on international sanctions lists
Our subsidiary Kaspi Bank is one of the largest and systematically important financial institutions in Kazakhstan and it operates under the strict supervision and regulations set by the National Bank of Kazakhstan, the Agency for Regulation and Development of Financial Markets and the Financial Monitoring Agency of the Republic of Kazakhstan.
Kaspi.kz consumers and merchants must complete our “know your customer” (KYC) process. When opening an account, we biometrically identify a consumer. Consumers must provide their full name, date of birth, address, passport, Kazakh tax ID and Kazakh mobile phone number.
Foreign citizens can open accounts with us only after going through the same KYC processes mentioned above, which include having a Kazakh Tax ID and Kazakh mobile phone number among other requirements.
Our policy is to not admit any customer or work with any counterparty that appears on international sanction lists. Checks are performed regardless of residency.
Our policy is not to work with sanctioned banks
We have international correspondent bank accounts with leading financial institutions, including The Bank of New York Mellon (USA), Citi Bank (USA), Societe Generale (France), Landesbank Baden-Wuerttemberg (Germany), Commerzbank AG (Germany) Raiffeisen Bank International AG (Austria) and Raiffeisen Bank (Russia).
Raiffeisen Bank Russia is a fully owned subsidiary of Raiffeisen International, one of Austria’s largest banks. The bank is under the direct supervision of the European Central Bank and is not subject to any sanctions, either at the group level or at the Russian subsidiary level.
We believe we are in compliance with applicable laws and are not aware of any anti-money laundering investigations against Kaspi.kz
Kaspi Bank is a fully licensed bank and is highly regulated under Kazakhstan’s Anti-Money Laundering Law by various agencies, including the Financial Monitoring Agency of the Republic of Kazakhstan and the Agency for Regulation and Development of Financial Markets.
Under Kazakhstan’s Anti-Money Laundering Law, we must immediately report suspicious transactions to the Financial Monitoring Agency of the Republic of Kazakhstan, which has the authority to order suspension of suspicious transactions before such transaction has been processed.
Only
As of 2Q2024 only
Only
Non-residents are all foreign nationals without a Kazakh permanent residence permit.
Only
Merchants connected to our marketplace must have a legally registered business entity in Kazakhstan. Our ability to identify consumers and merchants distinguishes us from most major marketplace businesses around the world. Both a consumer and a merchant have bank accounts with us. When a marketplace transaction happens the flow of money is from a consumer’s bank account with us to a merchant’s bank account with us.
During the first half of 2024, only
In 2023, our classifieds business in Azerbaijan generated KZT3,742 million in revenue. We acquired the business for around KZT11,988 million
Our acquisition of leading classified platforms in Azerbaijan was made in 2019, 5 years ago. The transaction price of KZT11,988 million was disclosed in our audited financial statements and other disclosures.
In our 20F we disclose revenue from Azerbaijan, all of which comes from classifieds. In 2023 we generated KZT3,742 million revenues in Azerbaijan, representing a CAGR of
Kaspi.kz acquired Portmone from Europe Virgin Fund whose LPs included the European Bank for Reconstruction and Development
We acquired Portmone Group in October 2021 from its management and 4i Capital Partners’ Europe Virgin Fund. Investors in this fund included such governmental financial institutions as the European Bank for Reconstruction and Development (EBRD), the Swiss Investment Fund for Emerging Markets and the Black Sea Trade and Development Bank.
In our 20F we disclose revenue from Ukraine, all of which comes from Portmone. Portmone, which operates under payments licenses from the Ukrainian regulator, remains a platform for Kaspi.kz’s potential future growth in Ukraine.
We acquired
As disclosed in our prospectus and 20F, in February 2023 we acquired a
The remaining
e-Grocery is now Kazakhstan’s major online grocery retailer. As disclosed in our public filings, during the first half of 2024 GMV was up
Mrs. Yulia Kim is leading our e-grocery operations and is the driving force behind its success alongside the rest of our team. She is not the daughter and has no family relationship to Mr. Vyacheslav Kim.
About Kaspi.kz
Kaspi.kz’s mission is to improve people’s lives by developing innovative mobile products and services. To deliver upon this we operate a unique two-sided Super App model – Kaspi.kz Super App for consumers and Kaspi Pay Super App for merchants.
The Kaspi.kz Super App is Kazakhstan’s most popular mobile app, with 14 million MAU in 2023, 9.1 million of whom access our services daily. The Kaspi Pay Super App is the digital partner of choice for businesses and entrepreneurs in Kazakhstan, with 581K merchant partners in 2023.
Through these Super Apps consumers and merchants can access our leading Payments, Marketplace, and Fintech Platforms. All our services are designed to be highly relevant to users’ everyday needs and enable consumers and merchants to connect and transact, using our proprietary payments network.
The combination of a large, highly engaged consumer and merchant base, best-in-class, highly relevant digital products and a capex lite approach, results in strong top-line growth, a profitable business model and enables us to continue innovating, delighting our users and fulfilling our mission.
Harvard Business School has written two case studies on Kaspi.kz which it continues to teach to its MBA students.
Kaspi.kz has been listed on NASDAQ since 2024.
For further information
david.ferguson@kaspi.kz +44 7427 751 275
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. federal securities laws, which statements relate to our current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “believe,” “may,” “might,” “will,” “expect,” “estimate,” “could,” “should,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “prospective,” “continue,” “is/are likely to” or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, risks related to the following: our ability to attract sufficient new customers, engage and retain our existing customers or sell additional functionality, products and services to them on our platforms; our ability to maintain and improve the network effects of our Super App business model; our ability to improve or maintain technology infrastructure; our ability to successfully execute the new business model and reach profitability of the e-Grocery operations; our ability to partner with sufficient new merchants or maintain relationships with our existing merchant partners; our ability to effectively manage the growth of our business and operations; developments affecting the financial services industry; our brand or trusted status of our platforms and Super Apps; our ability to retain and motivate our personnel and attract new talent, or to maintain our corporate culture; our ability to keep pace with rapid technological developments to provide innovative services; our ability to implement changes to our systems and operations necessary to capitalize on our future growth opportunities; changes in relationships with third-party providers, including software and hardware suppliers, delivery services, credit bureaus and debt collection agencies; our ability to compete successfully against existing or new competitors; our ability to integrate acquisitions, strategic alliances and investments; our ability to adequately obtain, maintain, enforce and protect our intellectual property and similar proprietary rights; evolving nature of Kazakhstan’s legislative and regulatory framework; our ability to obtain or retain certain licenses, permits and approvals in a timely manner; our ability to successfully remediate the existing material weaknesses in our internal control over financial reporting and our ability to establish and maintain an effective system of internal control over financial reporting; dependence on our subsidiaries for cash to fund our operations and expenses, including future dividend payments, if any; and risks related to other factors discussed under “Risk Factors” in the final prospectus relating to our initial public offering filed with the U.S. Securities and Exchange Commission on 19 January 2024.
We operate in an evolving environment. New risks emerge from time to time, and it is not possible for our management to predict all risks, nor can we assess the effect of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
________________________________
1 Source: Kaspi Bank statutory accounts report (700-H) disclosed on Kazakhstan Stock Exchange (KASE)
FAQ
What percentage of Kaspi.kz's (KSPI) revenue comes from Kazakhstan?
How much of Kaspi.kz's (KSPI) customer account balances are from non-residents of Kazakhstan?
What percentage of Kaspi.kz's (KSPI) Marketplace GMV comes from non-resident purchases?
How much did Kaspi.kz (KSPI) invest in Magnum e-Grocery?
