Bifogade filer
FRAM Quarterly Report 2023 09
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | First North Stockholm |
| Sektor | Tjänster |
| Industri | IT-konsult & onlinetjänster |
Significant events during the quarter
Fram Skandinavien's strategic focus on driving profitability and maximize the value of its current assets
As of 31st of October 2023, the net asset value amounted to 223 mSEK (62 SEK per share), which was approximately +107% above the closing price of the Fram B share on the same day and represented a decrease of -14% compared to 30th of September 2023, primarily driven by an expanded peer group for Carmudi that lowered the average peer multiple of the group somewhat.
Following the implementation of its new investment strategy, Fram has actively pursued initiatives to enhance profitability, improve capital efficiency, and strengthen readiness to raise external capital for the ventures within its portfolio. This strategic shift has allowed Fram to focus on driving growth and maximizing returns for its investments, ensuring that it remains well-prepared to maximize the value of its current assets.
During Q3 and Oct 2023, additional capital injections were made by Fram into Carmudi, EveHR and Liven of 2.1 mSEK, 0.5 mSEK and 0.3 mSEK respectively to support their business operations and to prepare their development for further value appreciation.
Fram sold its shares in Grab, Abaxx Technology, and Bukalapak during Q3 and Oct 2023 as part of its current intentions to resource away from public markets.
The current portfolio of Fram consists of 5 holdings, including 4 private and 1 public tech company, with a total invested amount of 52 mSEK. The total NAV of these companies reached 191 mSEK, rendering a latent return multiple of 3.7x on the invested capital.
The negotiations for the sale of DragonLend continue around a Share Purchase Agreement as Fram has received increased clarity on the intended merger between RCRT & GOLQ, enabling payment in Nasdaq-listed shares.
Stable growth in SEA economy fuels startup revival
SEA has stood firm against global macroeconomic headwinds: SEA's GDP growth rate remains above +4%, while inflation has come down to 3%. Consumer confidence is starting to rebound in H2 2023 after falling to lower levels in H1 2023. Vietnam's GDP growth rate improved to a pace of +5.3% year-over-year (y/y) in the third quarter of 2023, compared with +4.1% y/y in the second quarter. Vietnam is expected to resume rapid economic growth over the medium-term, as exports rebound.
SEA’s digital economy has reached a total revenue of 100 bUSD in 2023, representing a 8x over the past 8 years, with consistent growth in both GMV and revenues. While the digital economy will continue to be the major growth driver in the region, the structural shift from growth at all cost to sustainable profitability has reset new objectives for a more balanced and focused monetisation.
Startups in the SEA region continue to face funding challenges, as the region’s funding levels dropped to a five-year-low during the third quarter of 2023, amounting to 835 mUSD. This decline follows a surge in funding during the second quarter of 2023, when investments reached 3.2 bUSD. Year-over-year, Q3 funding experienced a -66% decrease from 2.5 bUSD. However, the drypower remains high in the region and will continue to fuel startups’ growth.
Indonesia recorded a substantial +110% quarter-on-quarter increase in funding, with funds rising from 213 million USD in Q2 to 448 million USD in Q3. Meanwhile, Vietnam's tech startups secured a remarkable 50 million USD in funding, marking a significant upswing compared to the second quarter of 2023. Early-stage investment rounds were instrumental, contributing to nearly 98% of the total funding for the quarter.