Mongolia's biggest digital payment tool, QPay, is getting ready for its first-time public offering (IPO). Instead of using cash or bank cards, people in Mongolia usually make payments with digital wallets like QPay. Let's take a closer look at Innovation Investment, the company behind QPay.

The Beginning

In 2016, Innovation Investment started developing the QPay service, officially establishing itself in 2017. The company currently operates with two subsidiaries: KKTT, which provides electronic payment services using QR codes, and DMS, a developer of mobile and web apps for merchants.

QPay's Impact

QPay has gained popularity quickly since its introduction in 2019, with 63 million transactions in the previous year alone. In the first 10 months of this year, transactions surged to 98.6 million, totaling ₮4.7 trillion.

• Growing Strong: QPay now boasts more than 3.2 million users and over 14,000 connected customers. The market share of QPay transactions is expected to rise from 0.2% in 2018 to 12.5% by 2027.

Upcoming IPO

Currently, 16 individuals own shares in Innovation Investment, with ICT Group holding 22%. However, the company plans to go public next month, offering 20% of its shares to the public at ₮225 per share, aiming to raise ₮8.3 billion.

• Why Invest: Considering the decline in paper money and payment card usage, investing in a payment service with a wide network seems timely. The company turned profitable in 2021, reporting a profit of ₮3.5 billion last year. Owners' equity reached ₮6.1 billion, with a remarkable ROE of 78.4%. By 2027, the profit is expected to quadruple to ₮14 billion.

Mark Your Calendar

QPay's IPO kicks off on December 4th, marking another Mongolian company going public. If you're contemplating whether to join the IPO, keep an eye on the increasing trend of digital payments and the promising financial indicators of Innovation Investment.