Tagged: ECM

CPP Entered into Agreement with Beijing Financial Inter-connection of Electronic Platforms to Provide Multiple Services

HONG KONG, Aug. 27, 2014 /PRNewswire/ — The board of directors of China Public Procurement Limited (HKEx stock code: 1094, the “Company” or “CPP”) is pleased to announce that CPP’s subsidiary Guocai (Beijing) Technology Company Limited (the “EJV”) has entered into a framework cooperation agreement with Shenzhou Yiqiao (Beijing) Finance and Tax Technology Company Limited (“Beijing Financial”) in relation to the inter-connection between their electronic platforms to provide various services.

Beijing Financial is a developer and operator of software in relation to financial, tax and payment management matters for small and medium-sized enterprises. It operates the Beijing Financial Management System, which is a software application system developed for finance and accounting practitioners, which integrates a financial information platform with various software programs in relations to financial, tax and payment management matters.

According to the agreement, Gongcai Tong (an online public procurement information platform run by CPP) and Beijing Financial Management System will be inter-connected to integrate various services, including credit investigation services, electronic receipt services, third party payment services and financial and factoring services. Both parties agreed to promote sales of Gongcai Tong and the the Beijing Financial Management System through various marketing channels, including internet, mobile applications or exhibition.

Credit Investigation Services

Subject to the relevant authorisation of the users of the Beijing Financial Management System being obtained, Beijing Financial agreed to provide financial data of such users to the EJV for the purpose of supplementing the supplier credit investigation and credit rating services of the China Public Procurement Platform.

Electronic Receipt Services

The EJV and Beijing Financial agreed to increase their cooperation in the research and promotion of the use of electronic receipts and the application of electronic receipts in pilot development areas and in electronic public procurement platforms.

Third Party Payment Services

The EJV, the Company and a third party payment service provider entered into a cooperation agreement in relation to the provision of third party payment services on the China Public Procurement Platform. The said third party service payment service provider shall be engaged for the provision of third party payment services, including but not limited to online payment services and electronic reconciliation services, to customers of Beijing Financial. Beijing Financial agreed to incorporate such services into the Beijing Financial Management System.

Financial and Factoring Services

Both parties agreed to jointly develop factoring services regarding export tax rebate and other financial services for exporters.

Mr. Cheng Yuanzhong, Chairman of the Company, said “We welcome the framework cooperation agreement with Beijing Financial. We will be able to utilize our respective strength to enhance operation efficiency and lower operating costs through the integration of certain products and services. CPP will be benefited in the long term.”

About China Public Procurement Limited

China Public Procurement Limited is listed on the Main Board of The Stock Exchange of Hong Kong (stock code: 1094). The Group is principally engaged in the development of the public procurement services which involves the provision of procurement services to general public and government in the PRC, and the development of EMC service.

Frost & Sullivan: Regional Vendors Thrive as eRetailing of Automotive Parts and Service Picks Up in Europe

— Sale of tires and accessories will push online retailing revenues to more than EUR18 billion by 2020

LONDON, Aug. 27, 2014 /PRNewswire/ — The rapid growth in personal, in-vehicle and service shop connectivity is lending momentum to the creation of new customer touch points and driving the online sales of automotive parts and services in Europe. The emergence of independent eRetailers is further propelling the expansion of aftermarket eRetail, which has also been buoyed by aggressive participants such as Amazon.

New analysis from Frost & Sullivan, Opportunity Analysis for the Automotive Parts and Service eRetailing Market in Europe, finds that the market was valued at EUR5.29 billion in 2013 and estimates this to reach EUR18.33 billion by 2020. While France, Germany, and the UK contribute the highest to online sales due to higher Internet penetration, Russia is expected to witness maximum growth in revenues with a compound annual growth rate of 30 percent till 2020. Over the next five to seven years, Spain and Italy too will catch up as smartphone adoption increases.

“Sales through smartphone apps are an immediate opportunity for aftermarket participants in Europe to explore,” said Frost & Sullivan Automotive and Transportation Research Analyst Anuj Monga. “Although the computer is currently the preferred mode for online shopping, and the use of mobiles is limited to accessing product information, shopping through tablets and smartphones will pick up significantly as more 4G long-term evolution options become available.”

Tires will remain the leading product category in online sales, followed by brakes, batteries and vehicle accessories. Tire eRetailers, traditional parts retailers and pure play parts eRetailers are expected to gain market share owing to their regional presence, as radically dissimilar legislations across countries in Europe pose a challenge to cross border selling. Keeping compliance costs under check has also proved difficult for online sellers due to tax regulation variations and the complexity arising from deploying different models in each country.

Over the next few years, the key differentiator in the aftermarket retail space will be the fulfilment models employed by companies. Complementing various revenue opportunities such as smartphone apps, these innovative fulfilment models tailored to diverse target customers will enhance scope for growth.

“Original equipment manufacturers are likely to take the lead in directly driving parts sales by exploring new revenue-sharing arrangements with dealer groups as well as promoting the ‘click & fit’ model, which will ensure a steady stream of repair business,” noted Monga. “Hence, remote assisted repair, remote diagnostics and predictive analysis will evolve into robust avenues for eRetailing revenue generation in the medium to long term in Europe.”

If you are interested in more information on this study, please send an e-mail to Julian Borchert, Corporate Communications, at julian.borchert@frost.com.

Opportunity Analysis for the Automotive Parts and Service eRetailing Market in Europe is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Western European Heavy-Duty Used Truck Market, Global Automotive Aftermarket, North American Class 1 to 8 Filters Aftermarket, and In-vehicle Advertising in the North American Automotive Infotainment Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Opportunity Analysis for the Automotive Parts and Service eRetailing Market in Europe
M9FD-18

Contact:
Julian Borchert
Corporate Communications – Europe
P: +49 (0) 69 770 33 43
E: julian.borchert@frost.com 
Twitter: @FS_Automotive

http://www.frost.com 

Rail Passenger Numbers Rise as Operators across the Globe Utilize Mobile Ticketing Options

Frost & Sullivan: Rail operators’ mobile presence develops easier ticket purchasing methods

MOUNTAIN VIEW, Calif., Aug. 26, 2014 /PRNewswire/ — Travel and purchasing patterns of rail users globally are extremely dynamic in nature. Even though rail systems in the same geography are subject to similar environments, they tend to show hugely different ridership patterns as several social, economic, political and technological factors determine patronage.

A new database from Frost & Sullivan, Strategic Dashboard of Global Rail Passenger Volumes, provides passenger volume metrics for 538 rail operators in 2013. Key figures such as passenger volumes, total passenger movement in passenger kilometer, revenues from rail tickets, and the minimum, maximum and average ticket price have been included in the database. In addition, detailed parametric modeling has been utilized to estimate the sales channel split based on social and economic factors as well as rail performance indicators.

For complimentary access to more information on this research, please visit: http://bit.ly/1vfVvT8

“Mobile ticketing is rail transport’s newest offering, which is quickly gaining presence and boosting passenger volumes,” said Frost & Sullivan Automotive & Transportation Research Analyst Shyam Raman. “With the growth of application stores and the use of personal computing devices such as tablets and smartphones, rail operators across the globe have been pushed to increase their mobile presence.”

However, mobile ticketing has not quite taken off with some customers, who prefer to use familiar ticket procurement methods even if they are less convenient or involve more effort. This, along with server crashes and the lack of Internet access is dampening the adoption of mobile ticketing.

“Rail operators will have to strategize to deal with resistant customers in order to popularize mobile ticketing,” advised Raman. “They must also address server-related issues to support this endeavor.”

Strategic Dashboard of Global Rail Passenger Volumes is part of the Transportation & Logistics (http://www.transportation.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Executive Analysis of the Global Rail Industry 2014, Opportunity Analysis of the Eastern European Rail Market: A 360-degree Perspective, and Strategic Analysis of Light Rail Transit in North America. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on “the next big thing”

Register:         Gain access to visionary innovation

Strategic Dashboard of Global Rail Passenger Volumes
ND49-13

Contact:
Jennifer Carson
Corporate Communications – North America
P: 210.247.2450
E: Jennifer.Carson@frost.com

Twitter: @Frost_Sullivan or @FS_Automotive
Facebook: FrostandSullivan
Join our Forum on LinkedIn: Future of Mobility

http://www.frost.com

India to pilot Deutsche Post DHL’s e-commerce solutions for Asia Pacific

Investment in infrastructure and new delivery options to lay foundation for global e-commerce leadership in fastest-growing logistics sector

SINGAPORE and MUMBAI, Aug. 26, 2014 /PRNewswire/ Deutsche Post DHL, the world’s leading mail and logistics group, has chosen India to pilot the development of its e-commerce business model for Asia-Pacific. Through its subsidiary Blue Dart Express, already a national leader in door-to-door delivery, DPDHL ‘s business unit DHL eCommerce  is investing in infrastructure and the development of fulfillment centers, multiple delivery and payment options as part of its aim to become the preferred global provider of e-commerce related services including e-fulfillment and e-facilitation.

Frank Appel, CEO, DPDHL, said:  “Globally, e-retail is rapidly evolving. Over the next five years, the global e-commerce sector is expected to grow by more than 10 per cent per annum with Asia Pacific leading the way. This region is expected to soon surpass North America and Europe as the biggest online market in the world. As the leading logistics company with an unsurpassed global footprint, there’s a huge opportunity for us to become the world’s leading provider of e-commerce logistics and we have a ready solutions infrastructure in India to pilot our solutions.”

Blue Dart Express is well positioned to pilot e-commerce in India and models for Asia Pacific.  The leader in door-to-door delivery solutions and South Asia’s premier express air and integrated transportation and distribution company, Blue Dart services over 34,154 locations in India.

Investing in infrastructure and new delivery options

By 2025, e-commerce share of overall trade volume of emerging markets will be up to 30 percent (40 percent in developed countries), according DPDHL’s report ‘Global E-Tailing 2025′[1].

Malcolm Monteiro, CEO, DHL eCommerce Asia Pacific said: “With 250 million Internet users, Indian e-commerce remains underdeveloped, with online shopping valued at EUR 2.3 billion in 2013. This is expected to grow to EUR 4.1 billion by 2018, a CAGR of 12.3 per cent in 5 years[2].  All countries across Asia are in different evolutionary stages when it comes to e-commerce. We need to adapt our service portfolio within the region accordingly.” 

In India, DHL eCommerce, working closely through Blue Dart will invest in developing multiple delivery options and cash on delivery capabilities. These two key needs were identified by India’s top online shoppers – male, high-income, young urbanites – as part of a 20-country consumer survey on international distance selling ‘Shop the World’, carried out by DHL eCommerce to provide a deeper understanding of the home shoppers’ journey.

Anil Khanna, Managing Director of Blue Dart Express Ltd, said: “Blue Dart’s unrivaled domestic delivery system and network capabilities in India provide the perfect base for piloting the development of region wide e-commerce solutions. We are working closely with leading brands, market place sellers and retailers to help them establish a sustainable e-commerce footprint. That’s why we are investing in the right infrastructure – including IT – to build the right model for consumers and sellers.”

Tapping India’s eCommerce potential with India-specific insights

According to ‘Shop the World’, online purchases in India are limited largely to consumer electronics, fashion and media products with shopping by smart phone the norm. Indians’ main reasons for online shopping are overcoming geographical restrictions on choice and unlimited shopping hours — although the biggest negative was unknown quality of online products. E-shoppers in India revealed delivery expectations that were higher than the global average. Despite the country’s size, Indian shoppers expect delivery within 5 days (global average 6.5 days), parcel tracking options and free delivery. The average rate of return of goods also scored higher than the global average at 29.5 per cent with poor quality or defects the number one reason for returns.

The survey also identified growth opportunities in the development of online payment systems — cash on delivery or cards being India’s top payment choice — and in international sales. The majority of Indian e-commerce is domestic with only a third of consumers having ordered overseas. This is set to grow with more than half planning to place an international online order with US being the number one target market.

[1]DPDHL, Z_punkt and See More, Global E-Tailing 2025 Study 2014 http://www.dpdhl.com/content/dam/global-etailing-2025_en.html

[2]DHL,Shop The World Study 2014 http://www.dhl.com/en/campaigns/globalmail/shop_the_world.html?WT.mc_id=SHOPTHEWORLD_GO_EN_OFFLINE_002   ((Source: The World Bank 2012 &Euromonitor International)

– End –

DHL – The logistics company for the world

DHL is the global market leader in the logistics and CEP industry and “The logistics company for the world”. DHL commits its expertise in international express, national and international parcel delivery, air and ocean freight, road and rail transportation as well as contract and e-commerce related solutions along the entire supply chain. A global network composed of more than 220 countries and territories and around 315,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting environmental protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenues of more than 55 billion euros in 2013.

Blue Dart Express Ltd.

Blue Dart Express Ltd., South Asia’s premier express air and integrated transportation & distribution company, offers secure and reliable delivery of consignments to over 34,236 locations in India. As part of the DP DHL Group (DHL Express, DHL Global Forwarding & DHL Supply Chain), Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and territories and offers an entire spectrum of distribution services including air express, freight forwarding, supply chain solutions and customs clearance.

The Blue Dart team drives market leadership through its motivated people force, dedicated air and ground capacity, cutting-edge technology, wide range of innovative, vertical specific products and value-added services to deliver unmatched standards of service quality to its customers. Blue Dart’s market leadership is further validated by numerous awards and recognitions from customers for exhibiting reliability, superior brand experience and sustainability. Some of these include Superbrand and ‘Reader’s Digest Most Trusted Brand Award’, one of ‘India’s Best Companies to Work For’ by The Great Place to Work® Institute five times in a row, ‘Outstanding Contribution to the Cause of Education’ – Global HR Excellence Awards 2011-2012, BSE Best CSR Practice Award and 22nd CFBP Jamnalal Bajaj Fair Business Practices Award – 2010 in the category of Service Enterprises (Medium) to name a few.

Blue Dart accepts its social responsibility by supporting climate protection (GoGreen), disaster management (GoHelp) and education (GoTeach).

Logo – http://photos.prnasia.com/prnh/20140825/8521404749logo

Baja Fresh Partners with Givex to Fight Childhood Hunger

IRVINE, Calif., Aug. 25, 2014 /PRNewswire/ — One in five children in America struggles with hunger. Hunger not only impacts a child’s health but also results in poorer academic performance and can ultimately have a lifelong effect on future development and success.

Baja Fresh Partners with Givex to Fight Childhood Hunger

Baja Fresh Partners with Givex to Fight Childhood Hunger

That is why from August 15th to October 15th. Baja Fresh Mexican Grill, the quick-casual fresh Mexican chain, is donating 20% of all proceeds from the sale of its new line of Baja Fresh No Kid Hungry gift cards to Share Our Strength’s No Kid Hungry® campaign. Givex is contributing the technology for the gift program.

The No Kid Hungry campaign connects those in need with long-term help and resources such as school breakfast programs and educating families on shopping and cooking on a limited budget.

The Baja Fresh No Kid Hungry gift cards are powered by Givex, a global technology company and Baja Fresh’s gift card program provider since 2005. Charitable contribution programs are one of Givex’s many services.

“Helping end childhood hunger in America is a cause that resonates strongly with us,” says Charles Rink President and CEO, Baja Fresh. “Our No Kid Hungry gift cards provide a convenient way for our guests to contribute to Share our Strength’s programs and raise awareness in our communities. Our partnership with Givex allows for a seamless process for our operators to participate in supporting Share our Strength.”

To see a list of participating Baja Fresh locations, please visit:

http://www.bajafresh.com/pdf/homepage-promos/nokidhungrypromotionbajafresh2.pdf

About Baja Fresh

Baja Fresh Mexican Grill serves bold, fresh Mexican flavors for lunch, dinner, dine-in or take-out all in a spacious and contemporary environment. All entrées are made with never frozen, all natural, hormone free, fire-grilled, chicken, steak and slow roasted pork carnitas. Don’t forget the handmade guacamole and salsa bar hosting 6 salsas made fresh everyday, all day. Founded in 1990 and headquartered in Irvine, Calif., Baja Fresh operates or franchises 205 restaurants in 26 states as well as Dubai and Singapore. To learn more about Baja Fresh visit www.bajafresh.com.

About Givex

Givex is a technology company offering clients a global reach with cost-effective gift card, omni-channel loyalty, analytics, stored value tickets, and cloud-based POS systems. Our core distinction is taking on the tough task of managing all aspects of the transaction to ensure companies can deliver maximum customer satisfaction. Givex products and services give you insight into your data to enable you to better drive sales growth, customer relationship management and enterprise resource planning.

About Share Our Strength’s No Kid Hungry® Campaign

No child should grow up hungry in America, but one in five children struggles with hunger. Share Our Strength’s No Kid Hungry® campaign is ending childhood hunger in America by ensuring all children get the healthy food they need, every day. The No Kid Hungry campaign connects kids in need to effective nutrition programs like school breakfast and summer meals and teaches low-income families to cook healthy, affordable meals through Cooking Matters. This work is accomplished through the No Kid Hungry network, made up of private citizens, public officials, nonprofits, business leaders and others providing innovative hunger solutions in their communities. Join us at NoKidHungry.org.

Image with caption: “Baja Fresh Partners with Givex to Fight Childhood Hunger (CNW Group/Givex)”. Image available at: http://photos.newswire.ca/images/download/20140825_C7788_PHOTO_EN_42528.jpg

For further information:

For more information or media inquiries, please contact

Bryan Wang
Director of Marketing
Givex
Phone: 416.350.9660 x 309
Toll free: 1.877.478.7733
Fax: 416.350.9661
Email: bryan.wang@givex.com

Website: http://www.givex.com

Photo – http://photos.prnasia.com/prnh/20140825/8521404737

58.com Reports Second Quarter 2014 Unaudited Financial Results

BEIJING, August 21, 2014 /PRNewswire/ — 58.com Inc. (NYSE: WUBA) (“58.com” or the “Company”), China’s largest online marketplace serving local merchants and consumers, today reported its unaudited financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Financial Highlights

  • Total revenues were US$64.6 million, an 83.9% increase from the same period last year; exceeding guidance of US$61 million to US$63 million.
  • Gross margin was 94.7%, compared with 93.9% during the same quarter of 2013.
  • Net income was US$11.2 million, a 125.6% increase from the same period last year.
  • Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.14 and US$0.13, respectively, compared to basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.03 in the same quarter of 2013. One ADS represents two Class A ordinary shares.
  • Non-GAAP net income[1] was US$12.4 million, compared with non-GAAP net income of US$5.5 million in the same quarter of 2013.
  • Non-GAAP basic and diluted earnings per ADS[2] attributable to ordinary shareholders were US$0.15 compared to non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.06 in the same quarter of 2013.

[1] Non-GAAP net income is defined as net income excluding share-based compensation expenses. For more information on these non-GAAP financial measures, please see the section captioned “Non-GAAP Financial Measures” and the tables captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this release.

[2] Non-GAAP basic and diluted earnings per ADS is defined as non-GAAP net income divided by weighted average number of basic and diluted ADS.

First Half 2014 Financial Highlights

  • Total revenues were US$112.8 million, a 91.7% increase from the same period last year.
  • Gross margin was 94.8%, compared with 93.0% in the same period of 2013.
  • Net income increased significantly to US$13.5 million from US$0.3 million in the same period of 2013.
  • Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.17 and US$0.16, respectively, compared to basic and diluted loss per ADS attributable to ordinary shareholders of US$0.23 in the same period of 2013.
  • Non-GAAP net income was US$15.8 million, compared with non-GAAP net income of US$1.4 million in the same period of 2013.
  • Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.20 and US$0.19, respectively, compared to non-GAAP basic and diluted loss per ADS attributable to ordinary shareholders of US$0.18 in the same period of 2013.

Shares Outstanding Post Tencent Investment and Share Repurchase

On June 30, 2014, Tencent Holdings Limited, a leading provider of comprehensive Internet services in China purchased 36,805,000 ordinary shares from the Company at a purchase price of US$40 per ADS, or a total cash consideration of US$736.1 million. The Company used part of the proceeds from this transaction to repurchase an aggregate of 27,603,750 ordinary shares from existing pre-IPO shareholders. After this transaction, the Company had a total of 175,207,179 ordinary shares issued and outstanding as of June 30, 2014. The Company used weighted average ADSs or ordinary shares to calculate earnings per ADS and earnings per share.

Management Comments

“I am pleased to report another record setting quarter as our business continues to gain strong momentum,” commented Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com. “Our overall traffic increased to record high levels. Mobile traffic continued to grow at a much faster pace than PC traffic, with 54% of traffic coming from our mobile platforms demonstrating the traction we are gaining. While we continue to be the leading player in China’s multi-category local services market, we need to invest aggressively now to strengthen our competitive advantages in order to extend our lead and ensure future sustainable growth.”

Mr. Hao Zhou, Chief Financial Officer of 58.com added, “Our revenues exceeded the high end of our guidance for the third consecutive quarter since our IPO. The number of subscription-based paying merchant members during the second quarter of 2014 exceeded 500,000 for the first time. However, it is still less than 10% of the merchants that use our platform and is an even smaller fraction of the SME merchants population in China. Our profitability and cash position give us more power to re-invest in growing our business, including M&A activities to further expand market share.”

Second Quarter 2014 Financial Results

Revenues

Total revenues were US$64.6 million, representing an increase of 83.9% from US$35.1 million in the same quarter of 2013.

Membership revenues were US$35.1 million, an increase of 70.6% from US$20.6 million in the same quarter of 2013. The increase was primarily driven by the increase in the number of paying merchant members. The number of paying merchant members during the second quarter of 2014 was approximately 510,000, an increase of 71.1% from 298,000 in the same quarter of 2013. Paying merchant members are defined as the quarterly average number of paying merchant members over a given period.

Online marketing services revenues were US$29.3 million, an increase of 107.7% from US$14.1 million in the same quarter of 2013. The increase in online marketing services revenues was primarily attributable to an increase in user traffic and the effectiveness of the Company’s online marketing services, particularly growth in the Company’s bidding services.

Cost of Revenues

Cost of revenues was US$3.4 million, an increase of 58.4% from US$2.1 million during the same quarter of 2013. The year-over-year increase in cost of revenues was primarily driven by the increase in short message service (SMS) costs and bandwidth fees.

Gross Profit and Gross Margin

Gross profit was US$61.2 million, an increase of 85.5% from US$33.0 million during the same quarter of 2013.

Gross margin was 94.7%, compared with 93.9% during the same quarter of 2013.

Operating Expenses

Operating expenses were US$53.9 million, representing an increase of 89.2% from US$28.5 million in the same quarter of 2013.

Sales and marketing expenses in the second quarter of 2014 were US$40.3 million, an increase of 106.6% from US$19.5 million during the same quarter in 2013. Within sales and marketing expenses, advertising expenses accounted for US$16.5 million and US$4.5 million during the second quarter of 2014 and 2013, respectively. The increase in advertising expenses was primarily due to expenses associated with the marketing of the Company’s mobile platforms. Brand and online marketing expenses also increased, but to a lesser degree. The increase in other sales and marketing expenses was primarily driven by increased commissions, salaries and benefits for the Company’s sales and customer service teams.

Research and development expenses during the second quarter of 2014 were US$9.5 million, an increase of 56.9% year-over-year from US$6.1 million in the same quarter of 2013. The increase was primarily due to increased personnel costs as a result of hiring additional research and development personnel for the development of new features and services as well as share-based compensation and increased rental expenses.

General and administrative expenses in the second quarter of 2014 were US$4.1 million, an increase of 39.5% from US$2.9 million in the same quarter of 2013. The increase was primarily driven by increased share-based compensation expenses, professional fees and other administrative related expenses. The increase in professional fees was mainly due to costs associated with being a public company.

Income from Operations

Income from operations was US$7.3 million in the second quarter of 2014 compared with an income from operations of US$4.5 million in the same quarter of 2013. Operating margin was 11.3% in the second quarter of 2014, compared with 12.8% in the same quarter of 2013.

Non-GAAP income from operations[3] was US$8.5 million in the second quarter of 2014 compared with non-GAAP income from operations of US$5.1 million in the same quarter of 2013. Non-GAAP operating margin was 13.2% in the second quarter of 2014 compared with non-GAAP operating margin of 14.4% in the same quarter of 2013.

[3] Non-GAAP income from operations is defined as income from operations excluding share-based compensation expenses.

Other Income

Other income in the second quarter of 2014 was US$5.6 million, a significant increase from US$0.5 million in the same quarter of 2013. The increase was primarily due to an increase of US$1.9 million in interest income, US$1.2 million in investment income and US$1.8 million in government grants compared with the second quarter of 2013.

Income Tax Expenses

Income tax expenses were US$1.7 million in the second quarter of 2014, which were calculated using the annual effective tax rate of 13% for 2014 estimated by the Company. The difference between the statutory tax rate of 25% in China and the Company’s annual effective tax rate is mainly attributable to the preferential tax rate of 15% enjoyed by subsidiaries qualified as “high and new technology enterprises,” research and development tax credits and net losses carried forward from prior years.

Net Income

Net income was US$11.2 million in the second quarter of 2014, compared with a net income of US$5.0 million in the same quarter of 2013. Net margin was 17.3% in the second quarter of 2014, compared with 14.1% in the same quarter of 2013.

Non-GAAP net income was US$12.4 million in the second quarter of 2014, compared with non-GAAP net income of US$5.5 million in the same quarter of 2013. Non-GAAP net margin was 19.2% in the second quarter of 2014, compared with non-GAAP net margin of 15.7% in the same quarter of 2013.

Basic and Diluted Earnings per ADS

Basic and diluted earnings per ADS attributable to ordinary shareholders in the second quarter of 2014 were US$0.14 and US$0.13, respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.03 during the same quarter of 2013.

Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders in the second quarter of 2014 were US$0.15, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.06 during the same quarter of 2013.

Cash, Cash Equivalents, Term Deposits and Short-term Investments

As of June 30, 2014, the Company had cash, cash equivalents, term deposits and short-term investments of US$414.3 million.

Cash Flow

Net cash provided by operating activities was US$22.2 million in the second quarter of 2014, compared with US$13.5 million in the same quarter of 2013.

First Half 2014 Financial Results

Revenues

Total revenues were US$112.8 million in the first half of 2014, representing an increase of 91.7% from US$58.8 million in the same period of 2013.

Membership revenues were US$62.6 million in the first half of 2014, an increase of 76.6% from US$35.5 million in the same period of 2013. The increase was primarily driven by the increase in the number of paying merchant members. The number of average quarterly paying merchant members during the first half of 2014 was approximately 476,000, an increase of 74.4% from 273,000 in the same period of 2013.

Online marketing services revenues were US$49.8 million in the first half of 2014, an increase of 122.2% from US$22.4 million in the same period of 2013.

Cost of Revenues

Cost of revenues was US$5.8 million in the first half of 2014, an increase of 42.5% from US$4.1 million during the same period of 2013.

Gross Profit and Gross Margin

Gross profit was US$107.0 million in the first half of 2014, an increase of 95.4% from US$54.7 million during the same period of 2013.

Gross margin was 94.8% in the first half of 2014, compared with 93.0% during the same period of 2013.

Operating Expenses

Operating expenses were US$98.0 million in the first half of 2014, representing an increase of 76.9% from US$55.4 million in the same period of 2013.

Sales and marketing expenses in the first half of 2014 were US$72.4 million, an increase of 90.1% from US$38.1 million during the same period in 2013. Within sales and marketing expenses, advertising expenses accounted for US$29.1 million and US$10.3 million during the first half of 2014 and 2013, respectively.

Research and development expenses during the first half of 2014 were US$17.3 million, an increase of 45.6% year-over-year from US$11.9 million in the first half of 2013.

General and administrative expenses in the first half of 2014 were US$8.3 million, an increase of 52.8% from US$5.5 million in the first half of 2013.

Income from Operations

Income from operations was US$9.0 million in the first half of 2014, compared with a loss from operations of US$0.7 million in the same period of 2013. Operating margin was 7.9% in the first half of 2014, compared with negative 1.1% in the same period of 2013.

Non-GAAP income from operations was US$11.3 million in the first half of 2014 compared with non-GAAP income from operations of US$0.5 million in the first half of 2013. Non-GAAP operating margin was 9.9% in the first half of 2014 compared with non-GAAP operating margin of 0.8% in the same period of 2013.

Other Income

Other income in the first half of 2014 was US$6.5 million, an increase of 597.7% from US$0.9 million in the first half of 2013. The increase was primarily due to the increase in interest income, investment income and government grants, partly offset by foreign currency exchange loss in the first half of 2014.

Income Tax Expenses

Income tax expenses were US$2.0 million in the first half of 2014, which were calculated using the annual effective tax rate of 13% for 2014 estimated by the Company.

Net Income

Net income was US$13.5 million in the first half of 2014, compared with a net income of US$0.3 million in the same period of 2013. Net margin was 12.0% in the first half of 2014, compared with 0.5% in the same period of 2013.

Non-GAAP net income was US$15.8 million in the first half of 2014, compared with non-GAAP net income of US$1.4 million in the same period of 2013. Non-GAAP net margin was 14.0% in the first half of 2014, compared with non-GAAP net margin of 2.4% in the same period of 2013.

Basic and Diluted Earnings per ADS

Basic and diluted earnings per ADS attributable to ordinary shareholders in the first half of 2014 were US$0.17 and US$0.16, respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of US$0.23 during the same period of 2013.

Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders in the first half of 2014 were US$0.20 and US$0.19, respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of US$0.18 during the same period of 2013.

Cash Flow

Net cash provided by operating activities was US$40.2 million in the first half of 2014, compared with US$17.9 million in the same period of 2013.

Business Outlook

Based on the Company’s current operations, total revenues for the third quarter of 2014 are expected to be between US$66 million and US$68 million, representing a year-over-year increase of 59% to 63%. These estimates reflect the Company’s current and preliminary view, which is subject to change.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per share and per ADS by excluding share-based compensation expenses from income from operations and net income attributable to the Company’s shareholders, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company’s results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company’s performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

Conference Call

58.com’s management will host an earnings conference call on Thursday, August 21, 2014 at 8:00 a.m. U.S. Eastern Daylight Time (8:00 p.m. Beijing / Hong Kong the same day).

Dial-in details for the earnings conference call are as follows:

International:

+1-412-317-0790

U.S. Toll Free:

+1-877-870-4263

Hong Kong:

800-905945

China:

4001-201203

Passcode:

WUBA

Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.

A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m. U.S. Eastern Daylight Time, August 28, 2014. The dial-in details for the replay are as follows:

International:

+1-412-317-0088

U.S. Toll Free:

+1-877-344-7529

Passcode:

10051011

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of 58.com’s website at http://www.58.com.

About 58.com Inc.

58.com Inc. (NYSE: WUBA) operates China’s largest online marketplace serving local merchants and consumers, as measured by monthly unique visitors on both its www.58.com website and mobile applications. The Company’s online marketplace enables local merchants and consumers to connect, share information and conduct business. 58.com’s broad, in-depth and high quality local information, combined with its easy-to-use website and mobile applications, has made it a trusted marketplace for consumers. 58.com’s strong brand recognition, large and growing user base, merchant network and massive database of local information create a powerful network effect. For more information on 58.com, please visit http://www.58.com.

Safe Harbor Statements

This press release contains forward-looking statements made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. 58.com may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about 58.com’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: 58.com’s goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user base and network of local merchants for its online marketplace; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users’ information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and 58.com does not undertake any obligation to update such information, except as required under applicable law.

For more information, please contact:
58.com Inc.
ir@58.com

Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com

58.com Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, unless otherwise noted)

As of

December 31,

2013

June 30,

2014

ASSETS

Current assets:

Cash and cash equivalents

60,494

13,201

Restricted cash

————

16,308

Term deposits

152,190

235,329

Short-term investments

98,411

165,778

Accounts receivable, net

4,292

5,675

Amounts due from related parties

127

736,144

Prepayments and other current assets

8,983

16,218

Total current assets

324,497

1,188,653

Non-current assets:

Property and equipment, net

6,427

9,873

Intangible asset, net

65

58

Long-term prepayments

2,352

3,954

Total non-current assets

8,844

13,885

Total assets

333,341

1,202,538

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

8,309

8,343

Deferred revenues

55,099

75,685

Customer advances and deposits

21,369

27,748

Taxes payable

2,264

9,995

Salary and welfare payable

17,962

18,479

Amounts due to related parties

6

552,081

Accrued expenses and other current liabilities

8,049

16,962

Total current liabilities

113,058

709,293

Total liabilities

113,058

709,293

Commitments and contingencies

Shareholders’ equity:

Ordinary shares

2

2

Additional paid-in capital

359,276

618,868

Accumulated deficit

(138,419)

(124,924)

Accumulated other comprehensive loss

(576)

(701)

Total shareholders’ equity

220,283

493,245

Total liabilities and shareholders’ equity

333,341

1,202,538

58.com Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(U.S. dollars in thousands, except share, per share and per ADS data, unless otherwise noted)

For the Three Months Ended

For the Six Months Ended

June 30,

2013

March 31,

2014

June 30,

2014

June 30,

2013

June 30,

2014

Revenues:

Membership

20,570

27,548

35,092

35,461

62,640

Online marketing services

14,117

20,519

29,322

22,430

49,841

Other services

427

173

145

952

318

Total revenues

35,114

48,240

64,559

58,843

112,799

Cost of revenues(1)

2,141

2,440

3,392

4,094

5,832

Gross profit

32,973

45,800

61,167

54,749

106,967

Operating expenses(1):

Sales and marketing expenses

19,514

32,076

40,324

38,088

72,400

Research and development expenses

6,068

7,733

9,523

11,852

17,256

General and administrative expenses

2,903

4,293

4,051

5,462

8,344

Total operating expenses

28,485

44,102

53,898

55,402

98,000

Income/(Loss) from operations

4,488

1,698

7,269

(653)

8,967

Other income/(expenses):

Interest income

27

1,451

1,877

46

3,328

Investment and other income, net

254

1,356

1,436

649

2,792

Foreign currency exchange income/(loss), net

128

(3,531)

390

158

(3,141)

Others, net

59

1,688

1,877

85

3,565

Income before tax

4,956

2,662

12,849

285

15,511

Income tax expenses

————

(346)

(1,670)

————

(2,016)

Net income

4,956

2,316

11,179

285

13,495

Accretions to preference shares redemption values

(2,733)

————

————

(5,381)

————

Income attributable to preference shareholders

(1,476)

————

————

————

————

Net income/(loss) attributable to ordinary shareholders

747

2,316

11,179

(5,096)

13,495

Net income

4,956

2,316

11,179

285

13,495

Foreign currency translation adjustment, net of nil tax

(434)

(227)

102

(511)

(125)

Comprehensive income/(loss)

4,522

2,089

11,281

(226)

13,370

Net income/(loss) per ordinary share attributable to ordinary shareholders a?? basic

0.02

0.01

0.07

(0.12)

0.08

Net income/(loss) per ordinary share attributable to ordinary shareholders a?? diluted

0.02

0.01

0.07

(0.12)

0.08

Net income/(loss) per ADS a?? basic

0.03

0.03

0.14

(0.23)

0.17

Net income/(loss) per ADS a?? diluted

0.03

0.03

0.13

(0.23)

0.16

Weighted average number of ordinary shares used in computing basic earnings per share

44,245,388

158,876,693

163,845,229

44,245,388

161,374,686

Weighted average number of ordinary shares used in computing diluted earnings per share

47,389,071

168,140,508

170,328,272

44,245,388

167,847,603

Note:

(1) Sharea??based compensation expenses were allocated in cost of revenues and operating expenses as follows:

Cost of revenues

12

5

6

24

11

Sales and marketing expenses

109

156

177

218

333

Research and development expenses

214

372

495

426

867

General and administrative expenses

233

498

580

464

1,078

58.com Inc.

Reconciliation of GAAP and Non-GAAP Results

(U.S. dollars in thousands, except share, per share and per ADS data, unless otherwise noted)

For the Three Months Ended

For the Six Months Ended

June 30,

2013

March 31,

2014

June 30,

2014

June 30,

2013

June 30,

2014

GAAP income/(loss) from operations

4,488

1,698

7,269

(653)

8,967

Share-based compensation expenses

568

1,031

1,258

1,132

2,289

Non-GAAP income from operations

5,056

2,729

8,527

479

11,256

GAAP net income

4,956

2,316

11,179

285

13,495

Share-based compensation expenses

568

1,031

1,258

1,132

2,289

Non-GAAP net income

5,524

3,347

12,437

1,417

15,784

GAAP operating margin

12.8%

3.5%

11.3%

(1.1)%

7.9%

Share-based compensation expenses

1.6%

2.1%

1.9%

1.9%

2.0%

Non-GAAP operating margin

14.4%

5.6%

13.2%

0.8%

9.9%

GAAP net margin

14.1%

4.8%

17.3%

0.5%

12.0%

Share-based compensation expenses

1.6%

2.1%

1.9%

1.9%

2.0%

Non-GAAP net margin

15.7%

6.9%

19.2%

2.4%

14.0%

Weighted average number of ordinary shares used in computing non-GAAP basic earnings per share

44,245,388

158,876,693

163,845,229

44,245,388

161,374,686

Weighted average number of ordinary shares used in computing non-GAAP diluted earnings per share

47,389,071

168,140,508

170,328,272

44,245,388

167,847,603

Weighted average number of ADS used in computing non-GAAP basic earnings per ADS

22,122,694

79,438,347

81,922,615

22,122,694

80,687,343

Weighted average number of ADS used in computing non-GAAP diluted earnings per ADS

23,694,536

84,070,254

85,164,136

22,122,694

83,923,802

Non-GAAP net income/(loss) per ordinary share a?? basic

0.03

0.02

0.08

(0.09)

0.10

Non-GAAP net income/(loss) per ordinary share a?? diluted

0.03

0.02

0.07

(0.09)

0.09

Non-GAAP net income/(loss) per ADS a?? basic

0.06

0.04

0.15

(0.18)

0.20

Non-GAAP net income/(loss) per ADS a?? diluted

0.06

0.04

0.15

(0.18)

0.19

Frost & Sullivan Applauds Musoni for Extending Microfinancing to Kenya’s Previously Unbanked Population Using Mobile Money Technology

— Musoni’s mobile approach has proved efficient, reliable and secure

CAPE TOWN, South Africa, Aug. 20, 2014 /PRNewswire/ — Based on its recent analysis of the microfinance industry (MFI), Frost & Sullivan recognises Musoni with the 2014 Kenyan Frost & Sullivan Award for Technology Leadership. The company is the first 100 percent mobile microfinance institution in the world. By using a mobile platform as a channel to deliver its products and services to customers, Musoni has positioned itself to bring the benefits of microfinance to parts of the Kenyan population left behind by traditional microfinance institutions.

Musoni has consistently delivered its products to clients within 72 hours, which is significantly faster than the usual turnaround time of 7 to 14 days for loans in the microfinance sector in Kenya.

Continuous investment in research and development (R&D) has enabled the company to maintain its high standard of product and service delivery. A recent example of prototyping is the successful enhancement of the organisation’s management information system (MIS) to accommodate a new savings product that will be released to customers as soon as Musoni is registered with the Central Bank of Kenya as a deposit-taking institution.

“Musoni is currently offering micro-credit, and hopes to expand its services to include micro-savings and micro-insurance products,” said Frost & Sullivan Senior Economic Consultant, Craig Parker. “The delivery of savings and insurance using the mobile money platform will increase customer uptake, which is currently less than three percent for micro-insurance products in Kenya. The mobilisation of micro-savings will raise customer profiles and help them qualify for micro-insurance.”

Musoni works closely with international partners such as the Grameen Foundation, KfW and USAID, which enables it to gauge the challenges that the industry is facing. These best practices in process design have had a significant impact on Musoni’s growth. Since 2011, Musoni’s loan book has doubled annually; the company is also rolling out a digitised registration process that will allow it to expand its customer base.

Operational efficiency is pivotal to Musoni’s business, and by basing its operations entirely on the mobile technology platform, Musoni has eliminated the need for paper-based, back-office operations that are typical to commercial banks and conventional MFIs. The technology platform itself is the back office and all processes have been digitised, requiring no human intervention. For example, loan applications are converted to loan facilities and then registered to a loan account. The money is then transferred to the customer’s mobile wallet.

Musoni uses Safaricom’s M-PESA platform to offer micro-loans and accept repayments through mobile phones. More than 80% of the Kenyan population is registered with M-PESA, most of whom have no other access to financial services.

Furthermore, Musoni has built its own middleware as an improvement upon the M-PESA software to facilitate the money transfer process and authenticate loan repayments. The middleware has also enhanced the speed of information upload. For example, when field agents register customers for micro-loans using a mobile tablet, the loan applications are converted into loan facilities and then registered to a loan account. Once this registration is complete, the money is immediately disbursed to the customer’s mobile wallet.

The technological sophistication of the Musoni platform also encourages internal transparency, communication, and efficiency. The company is well ahead of its competitors in terms of technological sophistication because it has eliminated the need for physical branches. The automation of processes further diminishes the need for excess labour capacity on business premises.

“Within a short span of three years, the company has grown rapidly, widening its customer base well above the industry average of 15,000,” noted Mr Parker. “Musoni’s commitment to innovation and development of best practices in providing purely cashless and paperless mobile banking services in microfinance has set it up for continued growth in future.”

Each year, Frost & Sullivan presents this award to a company that has developed a pioneering technology that not only enhances current products but also enables the development of newer products and applications. The award recognizes the high market acceptance potential of the recipient’s technology. Recipients of this award represent the top ten percent of their industry.

Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research to identify best practices in the industry.

About Musoni

Musoni Kenya Ltd was formed in September 2009 and started operations in April 2010 as a credit only microfinance institution but with a full intention of becoming a deposit taking microfinance institution.

The original sponsor of the Musoni brand is Musoni BV, a company based in Amsterdam Holland, which had gained considerable experience working in the field of mobile banking and microfinance in East Africa.

Working with existing MFIs, the Musoni BV team was successful in rolling out the first partnerships between mobile money transfer services (MMT) and MFIs in both Kenya (2008) and Tanzania (2009). These early pilot programmes demonstrated the potential in introducing innovative new technologies to the microfinance industry, and were the inspiration behind setting up an MFI that would be completely cash-free, utilizing mobile money for all loan repayments and disbursements as well as the depositing and withdrawing of savings. As a result, Musoni Kenya is a world-wide leader in the MMT sector and hence was selected as the first country of operations, with more countries to follow.

Musoni stands for Mobile ‘Usoni’, a Swahili word for future, so Musoni means ‘Mobile Future’. Leveraging on technology, Musoni aims at offering the best value, most flexible and most customer-orientated financial services in the market. Their mission is to grow, build and maximize the potential of the businesses of the poor and unbanked of Kenya through the provision of affordable, flexible and customer-orientated financial services. Musoni currently serves more than 15,000 entrepreneurs with loans ranging from 5,000 to 500,000 KES (USD 60 to USD 5,800) totalling to an outstanding portfolio of 357 Million Kenya Shillings (USD 4.1 million) with a PAR > 30 of less than 3%. Musoni Kenya has four shareholders: Musoni BV, KfW, Grameen Foundation, and Access Africa Fund managed by MicroVest.

Musoni MFI is similar in several ways to the traditional microfinance model using the group methodology and character-based credit decisions. Musoni is technology focused, taking advantage of new technologies in order to improve the quality of service to its clients. Musoni is the first MFI to go 100% mobile thus being cash-free, enabling clients to repay their loans (and deposit their savings in the near future) using existing mobile money transfer products, such as M-PESA, (and potentially Airtel money, Orange money and others). This has numerous advantages for Musoni and its clientele base, especially in rural areas where other MFIs and banks are struggling to expand their reach.

Musoni has further leveraged its technology to create a paperless loan service process, integrating a tablet application called “The Musoni App” in the client registration and underwriting process. The use of the Musoni App has improved the loan turnaround time from 72 hours to less than 24 hours for an existing Musoni client. Musoni Kenya continues to innovate and is in the process of integrating automated credit scoring in its underwriting cycle.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Contact:

James Onyutta
Chief Executive Officer
Musoni Kenya Ltd.
Tel: +254 (0) 20260935
E: jamesonyutta@musoni.eu
www.musoni.co.ke

Samantha James
Corporate Communications Africa
Frost & Sullivan
Tel: +27-21-680-3574
E: samantha.james@frost.com