Nagad poised to make profit by 2025

Published : 28 May 2023 08:59 PM

Riding on ongoing investments, efforts to scale operations using state-of-the-art technologies, acquiring more customers and merchants, and thus expanding the financial outreach, Nagad is poised to become a profitable venture by 2025.

The country's fastest-growing MFS carrier of the Bangladesh Post Office will see its annual losses coming down at only Taka 5 crore in 2024 before it moves into profitability in 2025, when its net profit is projected to reach Taka 28 crore, according to financial projections for Nagad Limited in a prospectus submitted recently to Bangladesh Securities and Exchange Commission (BSEC).

In the following year in 2026, Nagad's net profit would more than double Taka 64 crore. And, from 2027, Nagad's profit will surpass Taka 100 crore a year, as shown inNagad's financial projections.

The change-maker mobile money carrier is also very optimistic about fetching a profit of Taka 171 crore in 2028, read the document that Nagad submitted to the BSEC to get approval for issuing zero-coupon bonds worth Taka 510 crore.

Mohammad Rezaul Karim, executive director and spokesperson of BSEC, said, "Nagad has secured bond issuance approval as it has enough liquidity and shown profitability forecasts as well."

"Nagad is spending on so many things including giving bonuses, cashbacks to customers," he said hoping that the company would move into profits very soon.

Nagad forecasts that it would generate net revenue of Taka 1,144 crore in 2024, Taka 1,324 crore in 2025, Taka 1,532 crore in 2026, Taka 1,773 crore in 2027 and Taka 2,053 crore in 2028.

Muhammad Zahidul Islam, head of public communication at Nagad, said from the financial transaction point of view, they are more focused on upgrading people's lives to the digital space, rather than ensuring the company's profitability.