ASX-listed tech play Mobecom has teamed up with South African-listed multibillion dollar telco Vodacom Group in a deal that has potential to become a multi-million-dollar contract within two years.
The three-year initial contract will see Mobecom develop and commercialise a white-labelled mobile service and migrate Vodacom’s current and historical customer base onto the company’s platform.
Mobecom will earn recurring licence fees and monthly payments, which will increase as the number of monthly active users increase.
First revenues are expected by the end of CY2017 with a fully commercialised mobile app completed by 31 January 2018.
Mobecom Chief Executive Officer Neil Joseph said the deal provided further strong commercial validation of Mobecom’s digital customer loyalty platform, built with airBux technology.
This is an incredibly significant contract for Mobecom, and positions us with the eighth largest listed company in South Africa,” Mr Joseph said.
We’re working hard to complete the migration of customer data onto our platforms and to deliver a commercialised mobile app for Vodacom customers by 31 January 2018.
“Already, we are in commercial discussions around the project’s next phase, which will add transactional capability to the mobile service, providing strong future revenue growth potential driven by increasing transaction volumes,” Mr Joseph added.
The company is already in advanced talks with Vodacom for roll-out of the project’s next phase which has the capacity to grow into a multimillion-dollar contract within two years.
Phase two will incorporate the delivery of in-app vouchers, coupons and e-commerce transaction capability and will be powered by Mobecom’s digital customer loyalty platform built on airBux technology.
The additional scope will further boost annual recurring revenue and provide strong transaction-based revenue upside, which will grow as the volume of in-app transactions increases, the company said.
Mr Joseph said Mobecom management was progressing commercial negotiations with numerous parties and expected to announce the conversion of further new contracts in the near future.
Mobecom (ASX:MBM) delivers end-to-end technology solutions for businesses to engage with their customers. Its primary offering, airBux, is a digital currency platform that provides ‘liquidity for loyalty’ and is the Company’s direct to consumer mobile application offering, with a cloud-based currency at its core.
Shares in Mobecom were last trading at 40c prior to entering a trading halt today.