Glenn Mac Donald, CEO of ZignSec, describes the Company's plan to use 29 million SEK from the latest rights issue to strengthen technology, marketing, and sales in Europe, Latin America, APAC, and Africa. The funds will also be used to hire senior salespeople and conduct targeted campaigns. ZignSec focuses on these regions due to their need for KYC and KYB solutions and distinguishes itself with a wide range of products that meet various customer demands, creating long-term customer loyalty and growth.
How do you plan to prioritise the use of the 29 MSEK added from the latest rights issue?
We're planning to use these funds to drive our growth in several important ways. We plan to allocate 29 million SEK from the rights issue, net of the 33.5 million SEK proceeds, to enhance our technical capabilities and strengthen our market presence, particularly in Europe, Latin America, APAC, and Africa. Specifically, about 30% of the funds will go to technology and development, 25% to sales and marketing, another 25% to operating expenses and other general costs, and the remaining 20% to investments in new customer projects.
How will the increased resources for sales and marketing concretely increase the company's market presence?
By investing further in marketing and sales within the regions and countries where we have started to see positive results, we aim to significantly increase our market presence. These strategic investments are designed to strengthen our brand and improve market shares through targeted campaigns and reinforcement of our sales team. Our approach includes various types of campaigns aimed at increasing awareness of our products and services, such as digital campaigns, participation in industry-specific events, and possibly partnerships with local organisations to strengthen our local presence. To further strengthen our sales team and ensure that we have the resources required to successfully implement this strategy, we plan to hire one to two senior salespeople. With these reinforcements in our sales team and our renewed marketing strategies, we are confident that we can expand our customer base and further strengthen ZignSec's position as a leading player in the RegTech industry.
Which specific markets do you aim to grow in and why specifically there?
We are focussing on expanding our presence and operations in Europe, LATAM, APAC, and Africa. Europe is a central market for us due to our established customer base and strong relationships. It is also a hub for financial services and technology, which demands high compliance standards, creating a constant need for our KYC and AML solutions. LATAM is showing promising growth and openness to digital innovation, especially among financial institutions and e-commerce platforms adapting to new regulatory requirements. In APAC, rapid technological development and the emergence of startups combined with stricter financial regulations, make it a strategically important market. Africa is another exciting growth market where digital transformation occurs at a rapid pace. Although it is a challenging market with varying regulatory landscapes, there is a strong demand for digital identity solutions and compliance services. The increasing mobile penetration and a growing young population adopting new technologies give us a unique opportunity for our digital identity and compliance services.
How does ZignSec differ from other players in the RegTech industry?
Our strength lies in our broad and unique range of KYC (Know Your Customer) and KYB (Know Your Business) products. This versatility allows us to meet a range of different customers' specific needs, which makes us very competitive in the market. We offer solutions tailored to handle both large and small companies' unique requirements regarding customer knowledge and business verification. This means that whether the customer is a global financial institution or a smaller e-commerce platform, we have the right tools to effectively support their compliance processes. We also see that our customers gradually expand their use of our products. This often happens as their business activities grow and their needs become more complex. For example, a customer who initially uses our services for basic KYC checks may eventually need advanced KYC solutions to review and verify their customer even deeper to meet stricter regulatory requirements. This ability to grow together with our customers and continuously offer added value is central to our long-term success and customer loyalty.
What new features or products can we expect to see as a result of this capital acquisition?
Due to increased demand for our KYB (Know Your Business) and niche KYC (Know Your Customer) solutions, we see a strong drive to further develop and broaden our product range to meet these growing needs. We plan to introduce new products that not only meet specific industry requirements but also offer a more integrated and comprehensive solution for our customers. These expanded features will include improved risk management and more flexible customisation options that cater to a range of different industries and applications. We are also aware of the importance of a seamless user experience, which is why we strive to create a more unified platform. Our goal is to standardise the user interface across all our products to simplify both implementation and daily management for our customers. By making our platform more unified, we expect to reduce our customers' learning time and increase their efficiency when interacting with our solutions. This also means that we will strengthen the integration between different products within our portfolio. By creating a more coherent solution, where information can easily flow between different parts of the customer's operations, we can offer a tool that not only optimizes compliance processes but also provides deeper insights and better decision support. It will also enable our customers to more effectively manage and respond to the changes in regulations that constantly occur, which is of utmost importance within KYC and KYB.
How scalable is your technology platform to meet growing customer needs?
Our platform is scalable, but it can be even more scalable and unified than it is currently. Although our current platform consisting of Web Shield and ZignSec operates on two different technologies, we are working on developing a more unified technical platform. This will not only improve scalability but also simplify and enhance the experience for our customers. This has been and is a great demand from our existing customers as well as companies that we are in dialogue with. With a good experience for our customers, we will not only increase our retention rate of platform usage but also make it clear and easy to work with our case management and collect more feedback from the existing customer portfolio to make data-driven decisions for product development.
Finally, why is ZignSec a good investment?
My view is that ZignSec still offers a unique investment opportunity in the rapidly growing KYC and KYB markets. Our advanced proprietary technology, customizable solutions through integration, scalability, global expansion, experienced management team, improved financial performance, and diverse customer base make us a compelling choice. Our comprehensive verification and monitoring solutions combine our technology with third-party functionalities, meeting the regulatory landscape's stringent requirements. Investing in ZignSec means investing in a future-focused company set for sustained growth, making us a standout choice for your investment portfolio.
We thank Glenn Mac Donald for the interview and wish ZignSec good luck on the journey.
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic owns no shares in the company at the time of the interview. // Detta är en intervju som har gjorts på uppdrag av bolaget. Impala Nordic eller personer bakom Impala Nordic äger inga aktier i bolaget vid upprättandet av intervjun.