The Fatfish Group Ltd (ASX: FFG) share price has continued its positive run and charged higher again on Friday.
At one stage today, the tech investment company’s shares were up as much as 10% to 16 cents.
The Fatfish share price has pulled back since then but remains 3.5% higher at 15 cents currently.
Why is the Fatfish share price charging higher?
Hot on the heels of an announcement relating to the acquisition of assets from iCandy Interactive Ltd (ASX: ICI) by its 50% owned RightBridge subsidiary on Tuesday, this morning Fatfish provided an update on its buy now pay later (BNPL) launch.
And judging by the Fatfish share price reaction, investors appear pleased with what the company had to say.
According to the release, Fatfish’s Singapore-based investee company Smartfunding has launched its BNPL service today as scheduled.
The release explains that its BNPL service has begun to take in applications from users immediately. These applications are being processed automatically via Smartfunding’s proprietary online platform. This platform was developed predominantly by Fatfish’s in-house venture builder team.
The release, littered with spelling mistakes, notes that Singapore is a great place to launch. It explained: “Singapore is indisputably the dorminant (sic) financial hub for the Southeast Asia region. By being regulated and headquarted (sic) out of Singapore, Smartfunding aims to attract businesses not only in Singapore, but as well as from the rest of the Southeast Asian economies.”
The company also points out that that the BNPL model is relatively new in Southeast Asia and has a massive potential market opportunity. The release advises that there is a population of 655 million in the region, with a large proportion of middle-class families.
Watch out for Afterpay
However, Fatfish and Smartfunding won’t have it all their own way. Last year BNPL giant Afterpay Ltd (ASX: APT) made a small acquisition in Singapore with a view of expanding into the South East Asia region in the near future.
But judging by the Fatfish share price, some investors appear to believe there is room for both companies.
Following today’s gain, the Fatfish share price is up 300% since the start of the year.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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