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Fintech and Payment System Company in Indonesia | MPA America Inc.
Summary
The target company recycles discarded lead-acid batteries and sells various types of reproduced lead ingots to domestic and international battery manufacturers. In particular, even though its business has a very large demand from major battery manufacturers in Indonesia, its production and supply system has not been able to keep up with them, so the target company is looking for an investor willing to provide financial assistance of approximately 50 billion rupiah for additional capital investment.
The target company’s business is difficult to obtain necessary licenses in Indonesia, and the competition is very limited. The target company has been in this business for decades and has gained credibility in the market. Demand for the target company’s products is very high, and the products are sold as soon as they are manufactured.
The target company’s commercial distribution can be divided into three main areas:
1. Purchase scrap batteries in Indonesia, dismantle them, and extract the necessary parts. Then, recycle the lead-acid batteries, process them into ingots, and sell them.
2. Purchase only the dismantled necessary parts, recycle them, process them into ingots, and sell them.
3. Purchase processed lead-acid batteries from trading companies, process them into ingots, and sell them.
The most recent financial forecast is for annual profits of approximately 162 billion rupiah and an EBITDA margin of about 5% for the next fiscal year, but based on an increase in the recovery rate of discarded lead-acid batteries and other factors, annual profits are expected to increase to 725 billion rupiah and an EBITDA margin of about 29% by the fifth year.
The nature of the business requires a large amount of working capital, as it takes approximately 2-2.5 months from the purchase of raw materials in cash to processing, sales, and collection of the sales proceeds. The company hopes to increase its cash on hand by investing in the business to ensure more stable operations.
Lead is mainly produced from mining and recycling, although the former is high-cost and low-return, so the latter is the mainstream of production, mainly through recycling. As lead is especially used in lead-acid batteries for automobiles and used not only in existing fuel automobiles but also in electric automobiles, demand for lead has been soaring in Indonesia, without exception.
The target company is open to both strategic and financial investors. The structure of the investment and the percentage of shares to be transferred are open, therefore, the company is willing to accept a wide range of investors who wish to invest in the company.
Company Profile
| Type of Business | Environment, ESG solution |
|---|---|
| Place of Business | Indonesia |
| Years Since Establishment | 1-5 years |
| No. of Employees | 0-25 employees |
Financial Overview
| Annual Revenue | 50-100M USD |
|---|