NETSOL signs contract for Indonesian market entry

Published 27/03/2025, 13:46
NETSOL signs contract for Indonesian market entry

ENCINO, Calif. - NETSOL Technologies, Inc. (NASDAQ:NTWK), a provider of solutions for the asset finance and leasing industry with a market capitalization of $27.54 million, has secured a contract with a Chinese leasing company to support their expansion into the Indonesian market. The agreement involves the deployment of NETSOL’s Transcend Finance suite, including the Omni Point of Sale (Omni POS) and Contract Management System (CMS), as well as a customized funding system designed to meet the specific needs of the client. According to InvestingPro data, NETSOL maintains a strong balance sheet with more cash than debt, suggesting financial stability to support new contract implementations.

The Transcend Finance suite is set to provide the leasing company with a comprehensive platform for managing credit contracts throughout their lifecycle, while the Omni POS application will facilitate quick credit assessments and business rule modifications. The customized funding system is intended to streamline funding operations and decision-making processes, aiding the company’s establishment in Indonesia. With a healthy gross profit margin of 47.43% and revenue growth of 9.28% in the last twelve months, NETSOL demonstrates strong operational efficiency in its software solutions business.

This partnership is characterized as a greenfield implementation, allowing for the design and customization of processes free from the limitations of legacy infrastructure. The system is tailored to Indonesia’s regulatory and operational requirements and does not necessitate data migration from any previous systems.

Najeeb Ghauri, Founder and CEO of NETSOL Technologies, expressed enthusiasm about the collaboration, highlighting the robust technology and region-specific customization as key factors in supporting the client’s successful market entry. Amanda Li Linjie, President of NETSOL China, emphasized the value creation and operational alignment anticipated from this partnership.

The implementation process is already in progress, with both NETSOL and the client working together to ensure compliance with local business and regulatory needs. This rapid deployment is facilitated by an agile-based methodology, which aims to be responsive to the client’s evolving requirements.

NETSOL Technologies has been providing advanced solutions to the global asset finance and leasing industry since 1996. The company is known for its innovative technology, including AI and cloud services, and has a reputation for fostering strong client partnerships. Currently trading near its 52-week low, InvestingPro analysis suggests the stock may be undervalued, with additional insights available through the comprehensive Pro Research Report, which provides deep-dive analysis of NETSOL and 1,400+ other US stocks.

The information in this article is based on a press release statement from NETSOL Technologies.

In other recent news, NetSol Technologies reported its Q2 FY2025 earnings, showing a slight revenue increase to $15.5 million from $15.2 million in the same quarter last year. Despite the revenue growth, the company faced a net loss of $1.1 million, or $0.10 per diluted share, as it continues to invest in AI and North American market expansion. Recurring revenues saw a notable rise of 27%, including a $1 million one-time catch-up, while services revenue grew by 26%. In other developments, NetSol has expanded into Indonesia through a new partnership with a Chinese leasing firm, deploying its Transcend Finance suite to facilitate market entry. This collaboration is tailored to comply with Indonesia’s regulatory and operational requirements. Additionally, NetSol’s subsidiary in Pakistan has initiated a share buyback program, potentially increasing the parent company’s ownership by approximately 10%. The company’s ongoing investments and strategic partnerships reflect its focus on strengthening its market position and enhancing its product offerings.

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