Invigor in Winning position after moving to live deployment of WeChat solution
Invigor Group Limited (ASX:IVO) has informed the market that its Memorandum of Understanding (MOU) with China’s Winning Group Holdings Limited, which was signed on September 18, is now unconditional.
Both parties have waived the initial three-month pilot period and will move to live deployment of WeChat Pay in south-east Asia with the first significant customer introduced by IVO.
Winning Group is one of just several global solutions providers for Tencent Holdings Limited. Tencent is one of China’s largest companies as well as one of the world’s most valued internet firms. It owns WeChat, a leading payment and social media platform in China with over one billion users (900 million of which are using WeChat Pay).
The removal of conditionality is a promising development for IVO, which will see the company and Winning Group (and by default Tencent) locked into the agreement for three years. This stability will enable IVO to expedite its growth and expansion into other international markets that are being pursued by Tencent through Winning Group.
The agreement also reiterates IVO’s move to a transactional based model which will drive revenue via merchant sales, IVO’s Loyalty solution and advertising royalties.
Finally, IVO expects to announce its first revenue-generating agreement with a recognised global grand with a significant presence in south-east Asia in the coming weeks, with IVO also set to earn a percentage of sales revenue from the merchants using WeChat Pay.
IVO CEO Gary Cohen commented on the strong announcement, “In the short time since we announced the MOU with Winning Group, we have quickly promoted the merits of our WeChat relationship to leading brands, retailers and mall owners in Singapore and Hong Kong.
“It has been enthusiastically received, and as such, we have agreed to remove the need for a 90 day pilot program. This reflects the strength of our partnership with Winning and the broad appeal of the technology offering.
“Our priority now is to consolidate and deploy the significant opportunities we have in this market whilst working on growing our joint capabilities to maximise the unique position we have in this area,” he concluded.