The global fintech market is already booming and shows no sign of slowing down with new and innovative providers and services entering the space. Revolutionary tools such as mobile wallets and digitized money are rolling out rapidly, along with some new approaches to key services like gift cards and POS systems.
In 2019, the global gift card market alone was worth roughly US$615.34 billion in 2019 and is expected to reach a staggering US$2.09 trillion by 2030, growing at a compound annual growth rate of 11.7 percent during the forecast period.
Meet
Givex Information Technology Group Ltd. (
TSX:GIVX,
Forum) – a Toronto, Ontario-based fintech company with over 20 years of experience providing sustainable profitable growth that has developed and commercialized a cloud-based omnichannel technology platform that integrates gift and loyalty programs, point-of-sale systems and flexible payment services to merchants all around the world.
The company,
which went public in late 2021, serves over 96,000 client locations in over 100 countries and provides investors with a unique opportunity thanks to a combination of strong future growth of its merchant base with current profitability.
In an interview with Stockhouse Editorial, Don Gray, CEO of Givex, explained that the company went public through a reverse takeover after having raised $22 million.
“Givex has never run at a loss, we’ve always run at a profit,” he said. “We had good working profit on the balance sheet before the reverse takeover,” adding that the company now has over $37 million in working capital that will help Givex carry out future acquisitions.
Givex – An Overview
The company started in 1999 by Mr. Gray his wife, Debra Demeza (who currently serves as Executive Vice President of Human Resources) and has grown to include the engagement platform, the POS system, and the payment system. They also had the foresight to begin the company as a cloud-based solution which has been a key part of their success.
“Compared to a lot of our competitors who might have different processors, we’ve got one platform that we sell to our clients,” Gray explained. He added that the company has been flexible enough, over time, to be able to build a platform that can be integrated into other third-party platforms for clients who have other systems already in place.
Gray added that, as a result, Givex has over 1,000 integrations with different point-of-sale companies, different APIs and so on.
Now that the company has gone public Gray explained that Givex plans to carry out mergers and acquisitions that will help the company build its base of merchants.
“Because we started in the gift card space, we’ve attracted and still have some very large Fortune 500 clients …. and some high-level brands that have been using our services for very many years,” he said, which include companies such as McDonald’s and Wendy’s.
While the gift card segment is a major driver of the company’s business, Givex has several other key drivers to its future growth.
These include its GivexPOS system, which can be customized to specific industries and include reports, workflows and functions and can be customized to how a business works. Different from other POS systems, the GivexPOS platform can be further customized based on a business’ requirements.
Another segment of the company’s business is its GivexPay solution, which is fully integrated with the Givex Platform. The GivexPay platform can accept payments wherever a business’ customers are and allows consumers to use their preferred method of payment through a personalized checkout experience online, in-app or in store.
Givex is also able to provide its clients with analytics powered through a data engine. This platform helps clients take a closer look at their Givex programs, customers, and operations. Through a dashboard and graphs, Givex clients can see insights into potential opportunities and early diagnosis of costly problems.
The company said these are all segments of its business that will be key to its three pillars of growth moving forward.
In addition to attracting new customers, Gray said the company also hopes to have some of its existing clients add some of the company’s other services to their portfolio. He explained that some clients, who started out as gift card clients, have now migrated to being a point-of-sale customer with 10 times the revenue.
Givex’s Solutions – At a Glance
Under Givex’s pipeline are several key products, including:
Gift Card platform: Which is how the company originated back in the late 1990s. The company’s gift card segment includes global gift card programs, corporate incentives, gift card malls, Givexpress, e-gift cards, mobile wallet, gift card and loyalty combo card, quick pay, rewards, wedding registry card, mystery gift card, resort card and customer satisfaction card.
Loyalty programs: Givex’s loyalty solutions provide solutions for large transaction and processing and POS partners. The company’s loyalty programs include spend-based programs, frequency programs, interactive loyalty website and rewards such as action-based and lucky winner rewards.
GivexPOS: The GivexPOS is designed for specific industries and features and includes tools, reports, workflows, and functions that are geared towards the way a business works. GivexPOS can also be customized for additional specialized requirements. The GivexPOS system comes with POS, gift cards, loyalty programs, kitchen display system, inventory, ordering kiosk, online ordering, and free upgrades.
GivexGo: The GivexGo app delivers real time management and functionality and is available on both iOS and Android. It provides key performance indicators (KPIs) and allows Givex clients to track relevant performance data based on location, department, or store.
Uptix: Uptix turns existing tickets into stored valued tickets, or loaded tickets, and serves as cashless payments at concessions and merchant locations throughout a client’s venue. Uptix loaded tickets also include a full-featured array of sports marketing and promotional programs designed to boost fan excitement and deepen analytical capabilities.
Ordering kiosk: The Givex ordering kiosk allows customers to skip the line to place their orders and determine how they want to interact with a business’ brand.
A Unique Solution for Hospitality and Retail Unlike Any Other
Although there are several other companies providing gift card and point-of-sale solutions, Gray said that Givex stands out from its peers in the space because there aren’t many doing all of those things in a wide range of markets.
Case in point, Givex operates in Europe, Southeast Asia, Australia, North America, South America and provides all of its services in these regions.
“We think we’re unique in that perspective,” Gray said. “Even our biggest competitors are not necessarily that global.”
He also said that Givex’s platform is also built by the company itself, instead of being hosted on another platform such as Amazon Web Services, which enables the company to have control over its platform’s security.
“We do third-party audits every year to make sure we’re doing everything we can to stay ahead of data breaches,” he explained.
What’s Next for Givex
Moving into 2022, Gray said Givex will be looking to add future acquisitions to its portfolio.
“Givex has been consistently profitable, and we’ve been able to grow the business in a methodical way,” Gray explained. “We’re going to continue to do that.”
He added that the company will continue growing at the pace it’s been growing, but that it will pick up some acquisitions that he believes will accelerate Givex’s growth.
“There’s a lot of good gift card opportunities out there,” Gray said and explained that it will be in a strong position to add top tier gift card clients to its portfolio.
An Overview of Some of The Givex Management Team
Don Gray, Chairman, CEO
Don Gray has been involved in the information technology industry for over four decades. Gray has extensive experience in start-ups, turnarounds, acquisitions, and dispositions. Gray’s start-up experience includes point-of sale, in addition to internet and cloud computing companies. Gray and his wife founded Givex in 1999.
Brittain Brown, President
Brittain Brown joined Givex in 2003 and has overseen the successful integrations of new additions to the Givex family of companies internationally. His leadership and passion for people have been instrumental in the company’s continued growth. Mr. Brown graduated from Queen’s University with a BA (Hons) in Economics.
Jim Woodside, Director, CFO
Jim Woodside has over 25 years of senior financial experience including with companies in the technology sector. Woodside completed his CAP with KPMG and is also a CBV/Chartered Business Valuator. Woodside has a BA from the University of Western Ontario and a BCom from the University of Windsor.
Graham Campbell, COO
Graham Campbell has over 15 years of experience in payments, e-commerce, and point of sale. Campbell specializes in operations, product and project management and user experience. Campbell attended Queen’s University and holds a BA in political science and a BAH in philosophy.
Mo Chaar, CCO
Mo Chaar oversees commercial strategy and development worldwide as well as managing sales teams within North America. Since joining Givex in 2007, his experience in gift card, loyalty, and POS has played a pivotal role in the success of some of Givex’s largest partners.
The Investment Opportunity
Since it began its operations in 1999, Givex has been profitable and, as Gray said, doesn’t operate at a loss. This alone is good news for investors who are looking for an investment opportunity with positive cash flow.
“[Givex is] a profitable company trading at a low multiple,” he said.
As of December 22, 2021, Givex has a market capitalization of C$69.06 million and share price of $0.60 with 115.11 million shares and 115.11 million shares outstanding.
With a global presence and a unique platform where its customers can execute everything they need to on one platform, Givex represents a long-term opportunity that investors don’t want to sleep on.
For more information, visit
www.givex.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.