Webuy Global Limited Reports 62% Increase in Revenue to $24.4 Million for the First Half of 2023
December 07 2023 - 8:30AM
Webuy Global Ltd (Nasdaq: WBUY) (“Webuy” or the
“Company”), a Southeast Asian community e-commerce retailer, today
provided a business update and announced interim financial results
for the six months ended June 30, 2023 ("1H 2023").
Vincent Xue Bin, Chief Executive Officer and
Co-Founder of Webuy Global stated, “I am pleased to report we
achieved a. 62.4% increase in revenue, totaling $24.4 million for
the first half of 2023, compared to the same period last year. The
revenue growth was primarily driven by a 208% increase in sales of
groceries in Indonesia through our platform, reaching $13.7 million
for the first half of 2023. This achievement follows our re-entry
into the market after the cross-border opening in 2022,
post-COVID-19. Furthermore, our expanding presence in Indonesia has
also resulted in a significant influx of offline bulk purchase
orders, underscoring the growing demand for our offerings in the
region.”
“Our strategy of introducing new travel services
has proven highly effective, evidenced by a 1026% surge in revenue.
In the first half of 2022, we generated approximately $0.5 million
from our existing services in Singapore. Building on this
achievement, in the first half of 2023, our foray into new travel
services propelled revenues to approximately $5.4 million,
highlighting the extraordinary growth driven by the success of our
strategy. It is also important to note we achieved these results in
the first half of the year, which historically has been a slower
travel season.”
“We recently completed an initial public
offering for aggregate gross proceeds of approximately $15.2
million, with a concurrent listing to the NASDAQ. We believe our
listing on a major U.S. exchange provides us increased visibility
and the opportunity to attract a broad investor base. We are
focused on achieving global reach for our social e-commerce
community platform, which currently operates in just Singapore and
Indonesia. This financing empowers us to not just grow our
e-commerce community platform in Singapore and Indonesia but also
strengthen our IT capabilities for data analytics, allowing us to
gain deeper insights into our customers and offer them tailored
product recommendations. We also continue to make strategic
investments aimed at further enhancing the user experience, as well
as expanding the capabilities and scope of our platform in order to
attract additional customers and suppliers.”
“We remain committed to our mission of
transforming the e-commerce model into a community-driven
experience for consumers. Specifically, we are bringing greater
efficiency to the traditional supply chain process through the
elimination of intermediaries. We conduct our “group buy” purchases
through both our Webuy mobile app, as well as through
various social networking channels, such as WhatsApp, WeChat, as
well as our own proprietary app. In each instance, a Group Leader
is assigned to each community group, based on geographic location,
to place orders on a consolidated bulk purchase basis. We are able
to achieve competitive prices for our customers similar to a group
purchase and bulk order, without having to undertake bulk purchases
individually, through a community-centric approach. Moreover, we
are leveraging our growing customer base and brand recognition to
expand into other products and services such as tours, travel
packages, food delivery services and e-vouchers. Overall, we are
highly encouraged by the outlook for business and look forward to
announcing additional developments as we focus our foothold within
large and underserved Southeast Asian markets.”
Financial Results
Total revenue increased by 62.4% to
approximately $24.4 million for the six months ended June 30, 2023
from approximately $15.03 million for the six months ended June 30,
2022. The increase was mainly attributable to the rapid growth of
grocery sales in Indonesia. In addition, revenues from selling
packaged tours and related products in Singapore, a new business
launched in January 2022, was approximately $5.4 million for the
six months ended June 30, 2023, compared to $0.48 million for the
same period last year.
The gross profit for the first six months of
2023 amounted to approximately $0.73 million, marking a decrease
from the approximately $1.12 million gross profit recorded during
the same period in 2022. This reduction in gross profit was
primarily attributable to the implementation of promotional
discounts aimed at enticing more users to join and engage with the
platform.
For the six months ending on June 30, 2023, the
Company reported a net loss of approximately $3.67 million, an
improvement from the net loss of approximately $4.19 million during
the same period in 2022. This reduction in net loss was primarily
attributable to effective cost-control measures, resulting in a
decrease of approximately $1.08 million, or 19.2%, in total
operating expenses.
About Webuy Global Ltd
The Company’s mission is to make social shopping
a new lifestyle for consumers and to empower consumers’ purchases
with an efficient, cost-saving purchasing model. Webuy is committed
to developing a community-oriented e-commerce platform in the
Southeast Asia region and transforming the e-commerce model into a
community-driven experience for consumers.
The Company's innovative 'group buy' business
model is set to revolutionize traditional shopping practices,
offering substantial cost savings to customers through a
community-centric approach. This approach, akin to group purchases
and bulk orders, simplifies the process for customers, eliminating
the need for individual bulk purchases. Furthermore, the business
model streamlines the traditional supply chain by minimizing the
involvement of intermediaries, thereby offering a more direct
"farm-to-table" supply model. Additional information about the
Company is available at http://webuy.global/
Forward-Looking Statements
This press release contains forward-looking
statements regarding the Company’s current expectations. These
forward-looking statements include, without limitation, references
to the Company’s expectations regarding the anticipated use of net
proceeds from the offering. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties
and assumptions that are difficult to predict. Factors that could
cause actual results to differ include, but are not limited to,
risks and uncertainties related to the satisfaction of customary
closing conditions related to the public offering, or factors that
result in changes to the Company's anticipated use of proceeds.
These and other risks and uncertainties are described more fully in
the section captioned "Risk Factors" in the Company’s Registration
Statement on Form S-1 related to the public offering (SEC File No.
File No. 333-271604). Forward-looking statements contained in this
announcement are made as of this date, and the Company undertakes
no duty to update such information except as required under
applicable law.
Contact:Crescendo
Communications, LLCTel: 212-671-1020Email:
wbuy@crescendo-ir.com
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