NEW YORK and KUALA LUMPUR, Malaysia - Treasure Global Inc (NASDAQ: TGL), an e-commerce platform operator known for its ZCity application, has entered into a partnership with software development firm Octagram Investment Limited. The collaboration, announced today, focuses on integrating interactive mini-game modules into the ZCity platform, aiming to boost user engagement and contribute to the company's growth.
The agreement, valued at $2.8 million, will be compensated through the issuance of Treasure Global shares. Octagram will design and develop the mini-games tailored to ZCity's growing user base, enhancing the app's digital ecosystem which connects users with merchants across various services such as activities, travel, goods, and rewards.
Carlson Thow, Director and CEO of Treasure Global, commented on the partnership, stating that it represents a significant step in the company's strategy to enhance digital engagement tools and customer experience. With Octagram's expertise, Treasure Global expects to bring exceptional value to its platform and improve the ZCity experience for users.
In addition to development, Octagram will provide ongoing technical support to ensure the new features remain functional and fully integrated within ZCity's ecosystem. The games will adhere to strict data security and privacy regulations, offering a seamless experience across web and mobile platforms.
This strategic move is anticipated to increase customer engagement on the ZCity platform and support Treasure Global's continued growth in the competitive e-commerce market. As of today, the ZCity Super App boasts over 2.9 million registered users.
Treasure Global, based in Malaysia, is recognized for developing innovative technology platforms, including the ZCity Super App, which simplifies e-payments and allows consumers to earn rewards. Octagram Investment Limited, situated in Labuan, specializes in creating scalable software solutions that enhance user engagement and functionality across various industries.
This press release includes forward-looking statements that involve risks and uncertainties. Factors that could cause actual results to differ include the company's ability to expand its e-commerce platform, customer acceptance of new products and services, and broader economic and regulatory challenges.
The information in this article is based on a press release statement from Treasure Global Inc.
In other recent news, Treasure Global Inc has been actively making strategic moves and adjustments. The company has entered into a Share Purchase Agreement with Alumni Capital LP, which allows the purchase of up to $6 million of Treasure Global's common stock. The company also completed an at-the-market equity offering program, raising approximately $2.99 million in collaboration with H.C. Wainwright & Co., LLC.
In addition, Treasure Global has formed strategic partnerships with Octagram Investment Limited (OCTA) and Credilab Sdn. Bhd. The agreement with OCTA involves the development of mini-game modules for the company's ZCity App, while the specifics of the partnership with Credilab remain undisclosed.
Furthermore, the company has seen several changes within its board of directors, including the appointment of new members and the departure of several others. Notably, Carlson Thow has assumed the role of CEO. In the midst of these changes, Treasure Global has also integrated TikTok Shop with its ZSTORE platform, aiming to enhance the online shopping experience for ZCITY's 2.7 million users.
These recent developments highlight Treasure Global's ongoing efforts to strengthen its corporate governance, manage its capital structure proactively, and adapt to changing market conditions.
InvestingPro Insights
As Treasure Global Inc (NASDAQ: TGL) embarks on this new partnership to enhance its ZCity platform, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Treasure Global's market capitalization stands at a modest $6.74 million USD, reflecting its current position as a small-cap company in the e-commerce sector. This relatively small size could potentially offer room for growth as the company implements its new strategy with Octagram Investment Limited.
An InvestingPro Tip highlights that TGL holds more cash than debt on its balance sheet. This financial position could provide the company with flexibility to invest in growth initiatives, such as the newly announced mini-game modules, without taking on excessive leverage.
However, investors should note that TGL's revenue for the last twelve months as of Q4 2024 was $22.07 million USD, with a concerning revenue growth rate of -68.21% over the same period. This decline in revenue underscores the importance of the company's efforts to boost user engagement and potentially increase monetization through the new mini-game features.
Another InvestingPro Tip indicates that TGL is quickly burning through cash. This information, coupled with the company's decision to compensate Octagram through share issuance rather than cash, suggests that Treasure Global is actively managing its liquidity while pursuing growth opportunities.
For those interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for TGL, providing a deeper understanding of the company's financial health and market position.
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