Xamble’s Transformation Hinges on Rights Issue Amid Market Expansion Risks

Xamble’s Strategic Transformation

ASX-listed Xamble Group Limited (ASX – XGL) is making decisive moves to cement its position as Southeast Asia’s leading influencer marketing platform and social commerce enabler. Reporting a solid first half of calendar 2025 with revenues of A$3.14 million and a cash balance of A$1.09 million, the company is executing a comprehensive transformation dubbed “Xamble 2.0.” This initiative involves exiting non-core markets, restructuring operations, and launching new growth engines such as the Xamble Affiliate Program.

The company’s management highlights a compelling growth trajectory, with new client acquisitions soaring 350% year-on-year and transactions facilitated nearly tripling compared to the previous quarter. These metrics underscore a rapidly expanding ecosystem of creators, users, and brands, creating a virtuous cycle that fuels further growth.

Capital Raise to Fuel Growth and Innovation

To accelerate this transformation, Xamble has announced a 1-for-3 renounceable rights issue priced at A$0.012 per CDI, representing a 33% discount to the last trading price. The company aims to raise approximately A$1.35 million, with 85% of the target already underwritten or committed, including significant participation from key directors and Eli Capital Pty Limited.

Funds raised will be strategically allocated to three core areas – driving user growth through influencer onboarding and brand campaigns (26%), enhancing technology with AI-driven features and affiliate sales integration (22%), and supporting working capital needs during this growth phase (43%). This capital injection is critical for Xamble to scale its proprietary AI-powered platform and expand its footprint across Southeast Asia’s booming e-commerce landscape.

Market Position and Future Outlook

Headquartered in Malaysia, Xamble serves a diverse client base across multiple sectors including FMCG, fashion, beauty, and financial services. The company’s platform leverages a network of thousands of influencers, enabling brands to engage consumers authentically and cost-effectively. Notably, Xamble’s community influencer campaigns demonstrate significant engagement and repeat activation rates, highlighting the platform’s ability to drive meaningful sales outcomes.

Looking ahead, Xamble plans to deepen its technology stack by incorporating generative AI and advanced analytics, launch a Creator Academy to upskill influencers and brands, and explore mergers and acquisitions to accelerate market entry and value chain expansion. The company’s vision is to consolidate its offerings into a comprehensive Creators Superapp, empowering creators throughout their entrepreneurial journey.

While the company’s recent financials show early signs of stabilisation and growth, the transformation remains a work in progress. Investors will be watching closely to see how effectively Xamble deploys its new capital and converts rising platform engagement into sustainable profitability.