CM8 expands into $1.1 trillion Chinese market
1 minute read
World-leading ‘Q&A’ platform provider Crowd Mobile (ASX:CM8) has signed a Letter of Intent with SmartTrans Holdings (ASX:SMA) and its subsidiary SmartTrand Technology to form a partnership that will give CM8 a springboard entry point into the Chinese market.
The deal sees CM8 gain access to over 1 billion potential customers across SmartTrans established network.
By leveraging the SmartTrans payment platform, CM8 hopes to be able to rapidly expand into the Chinese market and monetise its offerings.
CM8’s Question and Answer products, have already achieved success in other global markets and have now been localised for the Chinese market over the past three months:
The move into China was seen as the next logical step with the Chinese e-commerce market being the largest in the world and estimated to reach US$1.1 trillion by 2020.
It is not known how much of this market CM8 will be able to attract, so if considering the company as an investment option, you should seek further information from a professional financial advisor.
A pilot program between CM8 and SmartTrans is expected to run between 6-12 months in specific regions in China.
CM8 now sees its products available in 55 countries, with services available in 30 different languages and across 160 mobile carriers.
Whilst the tech industry is fast moving and there is no guarantee for success, this latest partnership with SmartTrans gives CM8 significant potential to expand its already proven services in the world’s largest market.
With CM8 generating $12.9m in revenues in FY15, estimates for FY16 are around the $36m mark.
A detailed report on CM8 can be found here.