Keeping it real amid tech boom

MigMe Investor Day. MigMe chief executive Steven Goh (sitting)

migme Investor Day. migme CEO Steven Goh (sitting)

Original dotcom entrepreneur Steven Goh says the latest tech boom will power on, provided investors look for “real” companies and substance.

Speaking after Perth’s recent backdoor listing boom — and the Federal Government’s sudden appreciation of the sector — Mr Goh said it was great to see tech back “in vogue” with more money floating around.

However, the former Perth resident, who heads social media play, migme, now valued at $250 million, says many in the sector are yet to be proved.

“It’s tempting that when money seems to be a little more available, combined with when people are seeking growth, well, it can create risks out there,” Mr Goh said.

“I mean in any boom over the past 500 years, there’s been risk. It comes back to people being able to pick a real company.”

Mr Goh made the comments at a roadshow at migme’s Singapore head office yesterday, using the opportunity to educate brokers from Australia and Asia on what he described as migme’s “slightly esoteric” business model.

The social media play, which backdoor-listed through the shell of Perth company Latin Gold, gets the bulk of its revenue from 24 million active users mainly in Indonesia, Nepal and India. They buy online “gifts” — ranging from a few cents to a few dollars — for celebrities that they like on the platform.

It has recorded impressive growth since its Australian Securities Exchange debut and though its share price has levelled out over the past five months, it is well above its listing price. During the September quarter it recorded $3.7 million in receipts from customers, though Mr Goh declined to give a revenue breakdown, describing it as “lumpy”.

He said there was still a lack of understanding of the potential in developing Asian countries.

“We understand migme is a bit esoteric,” he said. “So we want to close that gap so people understand the real potential of the business here.

“Once again, it’s about real shareholders with real deals and real customers. End-to-end.

“We crank our numbers about whether we can build a real business here of size and substance. But I wouldn’t be here if we couldn’t.”

The reporter travelled to Singapore courtesy of migme

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