The The Naga Group AG (TG:N4G) is a fintech start-up with two products launched before the end of 2017: SwipeStox (securities trading and robo-advisory) and SWITEX (in-game items trading), a joint venture with Deutsche Börse AG. Named after NAGA, the strongest chili in the world, the group’s intention is to be disruptive; it believes that the open API module underpinning SwipeStox can quickly be duplicated on p2pfx (P2P FX/CFD trading) and Trafex (trading of bitcoin and real currencies) before early 2018. The IPO should enhance NAGA’s visibility and attract talent. Anticipated net proceeds of €1.7m, at an offer price of €2.6, implies 18.8x EV/sales based on 2016 consolidated financials.
SwipeStox: Social trading for millennials
SwipeStox is currently NAGA’s only live product, generating €740k revenue for NAGA following its launch in June 2016, with Hanseatic Brokerhouse Global Markets (HBGM) contributing c €2.5m in 2016. As a Finovate-Europe 2016 Best of Show Winner, SwipeStox takes social dating to investing, using an algorithm to ensure that only trades that match specific criteria are displayed. By tapping and swiping, users can interact, copy the best-performing trades and opt for the support of CYBO, a robo-advisor.
SWITEX: Secondary market for in-game items
Exclusively powered by Deutsche Börse, SWITEX is a market for trading in virtual goods from the gaming world. The business model is to share revenues with game publishers who are currently not benefiting from the secondary trading of in-game items on the grey market. NAGA owns 60% of SWITEX and Deutsche Börse 40%.
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