Spenda Limited
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Who Are the Key Players in the Spenda-Capricorn 10-Year Agreement?
Spenda-Capricorn Landmark Deal: A Decade-Long Commitment to Innovate the Automotive Industry
In a move that marks a significant leap in the digital transformation of the automotive industry, Spenda Limited (ASX: SPX) has inked a groundbreaking 10-year Master Services and License Agreement (MSLA) with Capricorn Society Limited. This long-term partnership is set to revolutionize the ecommerce payments infrastructure, heralding a new era of efficiency and digital integration in the automotive sector.
A Strategic Alliance
Spenda, known for its innovative software and electronic solutions, announced the completion of its foundational phase with Capricorn, a member-based organization with a robust presence in the automotive industry since 1974. This collaboration follows the successful implementation of the Digital Services Delivery (DSD) initiative, underscoring Spenda's commitment to advancing digital payment solutions.
An Extensive Network Poised for Transformation
Capricorn, boasting over 26,000 members and 2,000 preferred suppliers across Australia and New Zealand, represents a significant market opportunity. The organization's members reportedly procure approximately $270 million per month in parts from its supplier network, highlighting the vast potential of this partnership.
Financial Expectations
Spenda anticipates generating a minimum of $2 million in revenue from software and services in the 2024 calendar year alone.
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As the company's software rolls out to Capricorn's expansive member base, revenues are expected to surpass the projected $100k monthly revenue threshold, signaling a lucrative future for both entities.
Long-Term Partnership Potential
The MSLA not only solidifies a 10-year agreement but also includes a 5+5 year option, potentially extending the partnership to 20 years. This arrangement lays the groundwork for both parties to develop joint initiatives aimed at digitizing the automotive industry over an extended period.
Customizing Payment Infrastructure
Over the next six months, Spenda will work in close collaboration with Capricorn to tailor its payment solutions for Capricorn's members and suppliers. The onboarding of the network is slated to commence in mid-2024, marking a pivotal moment in the commercialization of these digital solutions.
The Foundation Stage Success
The partnership's journey began in May 2023 when Spenda was selected as Capricorn’s preferred supplier for the DSD initiative's Foundation Stage. The successful completion of the initial and final phases, including a comprehensive Proof of Concept, set the stage for this expansive agreement.
Leadership Perspectives
Capricorn's Confidence in Digital Advancement
Bradley Gannon, CEO (Automotive) of Capricorn, expressed confidence in the digital payments infrastructure, foreseeing substantial value for the member network. Gannon emphasized the importance of improving fund flow across the buyers and suppliers network in the automotive industry.
Spenda's Vision for the Future
Adrian Floate, CEO and Managing Director of Spenda, conveyed his enthusiasm for the partnership. He highlighted the significance of the agreement for both companies and expressed optimism about the scaling of revenues as the solutions reach more members of the Capricorn network.
About Spenda
Spenda Limited offers a unique payment solution designed to streamline operations in closed-loop and decentralized marketplaces. The company's offerings encompass software, payments, and lending services, enabling end-to-end e-invoicing integration, rapid ordering, digital trust, and automated reconciliation.
Spenda's technology fosters an industry-standard operating environment, facilitating data transfer from multiple software systems in a standardized solution. The company's expertise in payment flow analysis allows it to offer customized financing solutions to clients, enhancing working capital efficiency and cash utilization.
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