SE - Initiating Coverage of a Southeast Asian Community-Based Buying Group | Benzinga
By Brian Lantier, CFA
We are initiating coverage of Webuy Global (NASDAQ: WBUY) with a $0.85 target valuation.
Webuy Global is a community-based buying group platform that sells groceries, fresh produce, and packaged travel tours through its app in Indonesia and Singapore. The company is attempting to leverage its customer relationships to expand into additional markets where group buying has shown promise, like insurance.
The company has been able to achieve impressive revenue growth over the past few years as it has brought the community-based buy group model to underserved portions of Singapore and Indonesia. The company offered attractive incentives to group leaders and customers in the community to drive initial traction.
The company believes that its efficient supply chain management (leading to lower costs for consumers) will enable it to achieve above-market growth rates and the scalability of the model will enable the company to easily enter new product verticals. As the company grows during this period it may be challenging to identify core growth in existing operations versus growth derived from ...