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.
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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.”
