- Revenue increased by 443% in nominal terms
- Recorded exponential revenue growth in the Insurtech and the Vaya Technologies businesses units
- Ecocash contributed 62% of the total revenue, down from 72%
Harare – Diversified smartech group, Cassava Smartech Zimbabwe Limited saw its half year ended 31 August 2020 (H1 FY21) revenue increase by 443% in nominal terms to slightly over ZWL3 billion from same period last year spurred by an increase in transactional values due to hyperinflation.
The Group is yet to publish annual report for the financial year ended 29 February 2020, pending the outcome of the ongoing regulatory reviews on one of its subsidiaries, Ecocash (Private) Limited.
In a statement accompanying the trading update, the Group noted that the period has been about integration and diversification especially in the face of COVID-19 which has accelerated the digital transformation journey.
“Despite the reduced contribution of Ecocash to the Group’s performance, the Group’s revenue diversification strategy has seen some resilience spurred by the exponential revenue growth in the upcoming Insurtech and the Vaya Technologies businesses.
“This is a validation of the Group’s smartech business model which augurs well for the future outlook of the Group,” the Group said.
The Group added that it will continue to leverage on “our” robust business model to innovate around on-demand technology platforms thus creating customer convenience, and value creation for “our” shareholders.
Ecocash contributed 62% of the total revenue during the review period, down from a 72% contribution in the in the same period last year whilst Steward Bank’s contribution remained fairly stable at 20% compared to 18% in the previous comparative period driven by higher transactional values as a result of inflation, coupled with growth in interest earning assets.
According to the Group, the reduction in Ecocash’s revenue contribution was a result of both macro-economic factors as well as the exponential growth in the Insurtech and Vaya Technologies business units.
The Insurtech business recorded significant growth during the period contributing 13% to total revenue compared to 8% during the same period last year, stirred mainly by the growth in Moovah revenues.
“Growth prospects for this business unit are high, as we continue to introduce new products under the short-term insurance line,” the Group said.
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