Joint Stock Co Kaspi.kz (NASDAQ: KSPI)

Kaspi.kz, a leading financial technology company based in Kazakhstan, is commonly known by its stock symbol KSPI. The company has established itself as a significant player in the financial services industry, providing various services and products to both consumers and merchants.

Kaspi.kz operates a two-sided Super App business model, which integrates different services and products into a single platform. This model has allowed the company to cater to a diverse range of customer needs, resulting in a vast customer base of 14.0 million Average Monthly Active Users (MAU) and 581,000 Active Merchants as of December 31, 2023. The company's operations span across various sectors, including payments, marketplace, fintech, and government services.

The Payments Platform is a fundamental part of Kaspi.kz's business, facilitating transactions between and among merchants and consumers. The platform offers various services, such as P2P Payments, Kaspi QR, Household Bill Payments, and Merchant Acquiring Services. Kaspi QR technology powers the company's proprietary payments network, enabling end-to-end payments functionality between consumers and merchants using the Kaspi.kz Super App.

The Marketplace Platform connects online and offline merchants with consumers, enabling merchants to increase their sales using an omnichannel strategy. The platform offers various services, including e-Commerce, m-Commerce, Kaspi Travel, and Kaspi Classifieds. Kaspi.kz's Marketplace Platform is fully integrated into its Super Apps, providing a seamless shopping experience for consumers.

The Fintech Platform provides consumers with Buy-Now-Pay-Later (BNPL) products, General Purpose Loans, Car Finance, and Kaspi Deposit accounts. The platform also offers merchant and micro-business finance services, designed to help merchants invest in their inventory and grow their sales volumes.

Kaspi.kz's Government Services platform provides digital access to everyday government services, including digital documents, ID documents, driving license renewal, car ownership registration, and tax filing. Although Kaspi.kz does not generate revenue directly from Government Services, it contributes to higher Super App user engagement and is synergetic with the company's other products.

Kaspi.kz has established a strong operational and financial track record, attributed to its competitive strengths. The company's powerful self-reinforcing network effects, led by its popular Super Apps, have contributed to its long-term growth and success. Kaspi.kz's ability to integrate various services and products into a single platform, its extensive proprietary data, and customer feedback enable it to plan future product upgrades and launches.

The company's growth strategy is focused on capitalizing on structural growth in digitalization, increasing adoption of existing digital services, developing new innovative digital services, replicating its successful track record into new geographies, and leveraging its technology and data capabilities to create new markets and grow in existing markets. Kaspi.kz's proprietary technology and data capabilities provide it with significant competitive advantages, enabling it to power its artificial intelligence and machine learning algorithms and provide a highly personalized user experience.