🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

Web3 firm Transak hits EBITDA positive as a milestone on path to IPO - exclusive

Published 04/23/2024, 12:03 PM
Updated 04/23/2024, 12:07 PM
© Jakub Porzycki via Reuters Connect

Transak, a Web3 payments processor, has achieved a notable milestone on its path to an initial public offering (IPO) by reaching profitability, Investing.com has learned.

The Web3 company announced its first-ever quarterly profit, coinciding with surpassing $1 billion in lifetime gross transaction volume (GTV) for the quarter ending March 31, 2024.

The company sees this achievement of EBITDA positivity as a landmark that validates the viability of its business model and underscores the sector's rapid growth and potential.

What is Transak?

Founded in 2019, Transak acts as a bridge between traditional finance and digital assets. Their platform, accessible through an API, allows developers to integrate buying and selling of cryptocurrencies and NFTs (non-fungible tokens) for users in over 160 countries.

Transak's shift to profitability follows a period of strategic investment in technology, regulatory and geographic expansion, and risk management. The company argues that its achievement of $1 billion lifetime GTV further debunks misconceptions about the user base and revenue potential of the Web3 industry.

Key partnerships with Visa (NYSE:V) and IMX, along with recognition by CB Insights as a "Top Leader" in Fiat-to-Crypto On/Off Ramps, have contributed to Transak's growth trajectory. 

Their ranking as second in domain traffic among competitors (according to SimilarWeb (NYSE:SMWB)) is “a testament to both the attractiveness of its platform and the high level of trust it has built with its expanding user base,” states the company.

Progressing Towards IPO

Transak's achievement of profitability positions them strongly for an IPO, showcasing a sustainable business model and the vast potential of the Web3 industry.

When asked about a potential IPO, Sami Start, the co-founder and CEO of Transak, said to Investing.com that the company will eventually aim for a US exchange listing. The IPO is a 3-5 year aim for the Web3 company, Start added.

“Transak is already #2 in the market and on the path to #1,” Start said, before adding that milestones like profitability “are going to be the overall goals” before the startup files for listing. 

“[The] NFT market is now moving away from a hype layer to an application layer where the technology is becoming a necessity for web3 gaming and future e-commerce platforms,” said Smart. 

He added: “Transak’s robust NFT Checkout solution is developed to support such use cases and thus today is the primary solution for Immutable, Decentraland and 100s of other web3 applications.”

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.