SINGAPORE - Orangekloud Technology Inc. (NASDAQ:ORKT), a provider of no-code mobile application development platforms, has announced a strategic investment in Evvo Labs Pte. Ltd., a cybersecurity firm based in Singapore. The deal involves a S$1,000,000 (approximately $761,000) investment for a 3.23% shareholding stake in Evvo Labs.
This collaboration is set to enhance Orangekloud's digital transformation solutions by integrating Evvo Labs' cybersecurity expertise, aiming to better serve enterprise end-users. The investment will support Evvo Labs' efforts in product enhancement and expansion into new markets, including Singapore and Vietnam.
Orangekloud's CEO, Alex Goh, expressed optimism about the partnership, stating that it will not only improve service and security for their clients but also has the potential to generate new product revenue streams.
Evvo Labs has a notable history of providing cybersecurity solutions, including Web Application Firewall (WAF), Distributed Denial of Service (DDoS), and Database Activity Monitoring (DAM) solutions, mainly to government agencies in Singapore. The company operates its own Security Operation Centre (SOC) and has consistently won Singapore Government Cybersecurity Bulk Tenders over the past decade.
Orangekloud, on the other hand, specializes in its eMOBIQ® No-Code platform, which targets Small and Medium Enterprises (SMEs) to digitalize and streamline their business processes across various industries such as food manufacturing, construction, and retail.
This investment is expected to create positive synergies between the two companies, enabling them to strengthen their competitive positions and facilitate the development of additional products and services.
The announcement has been made based on a press release statement, and the strategic agreement is anticipated to generate beneficial outcomes for both Orangekloud and Evvo Labs as they leverage each other's strengths in technology and cybersecurity.
In other recent news, Orangekloud Technology, the Singapore-based company, has disclosed its unaudited financial results for the first half of 2024. This information was provided through a recent SEC Form 6-K filing, signed by the Chief Executive Officer, Goh Kian Hwa. While the filing did not include detailed financial figures or performance metrics, it is viewed as a transparency measure and a means of maintaining compliance with U.S. securities laws.
In addition, Orangekloud Technology has announced a collaboration with AI Singapore (AISG) to innovate in mobile application development through its eMOBIQ® No-Code platform. This partnership aims to streamline the app creation process using advanced artificial intelligence, potentially reducing development time significantly. The initiative is part of AISG's 100 Experiments program and will focus on creating a chain of AI agents to automate the app development process.
These recent developments underline Orangekloud's commitment to driving innovation, maintaining transparency, and complying with regulatory requirements. The company has also indicated its intention to continue filing annual reports under Form 20-F, providing a comprehensive statement of its financial performance.
InvestingPro Insights
Orangekloud Technology Inc.'s (NASDAQ:ORKT) recent strategic investment in Evvo Labs comes at a time when the company's financial metrics reveal both challenges and opportunities. According to InvestingPro data, Orangekloud's market capitalization stands at $157.89 million, reflecting its position as a smaller player in the technology sector.
The company's revenue for the last twelve months as of Q2 2023 was $3.9 million, with a concerning revenue growth decline of -23.56% over the same period. This negative growth trend is further emphasized by a quarterly revenue decline of -27.56% in Q2 2023. These figures underscore the importance of Orangekloud's strategic moves, such as the Evvo Labs investment, to potentially reverse this trend and create new revenue streams.
InvestingPro Tips highlight that Orangekloud "operates with a moderate level of debt" and "is not profitable over the last twelve months." These factors may have influenced the company's decision to seek strategic partnerships to enhance its market position and financial performance. The investment in Evvo Labs could be seen as a step towards diversifying its offerings and tapping into the lucrative cybersecurity market.
Interestingly, despite the financial challenges, InvestingPro Tips also indicate that Orangekloud has shown a "strong return over the last month" and "over the last three months." This recent stock performance, coupled with the fact that the stock is "trading at a high revenue valuation multiple," suggests that investors may be optimistic about the company's future prospects, including the potential benefits from the Evvo Labs partnership.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Orangekloud's financial health and market position. These additional tips, along with real-time metrics, can help in making more informed investment decisions.
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