InFocus’s Shift to Recurring Revenue Model Raises Execution Risks

Operational Expansion and New Contracts

InFocus Group Holdings Limited (ASX, IFG) has announced a significant operational scale-up, driven by new contract wins that could generate up to AUD 1.7 million in revenue over the next two years. The company’s software consultancy units, Onify and Prodigy9, have secured two Master Services Agreements (MSAs) in the healthcare and logistics sectors, marking a pivotal step in its growth strategy.

These contracts, signed with Alyssa Global Health and Forward Insight respectively, reflect InFocus’s growing footprint in Southeast Asia, particularly Thailand, where it is investing heavily in expanding its sales, marketing, and engineering teams. The company’s shift from project-based work to MSAs aims to establish a more stable and recurring revenue base, a move that could enhance financial predictability and client retention.

Strategic Leadership and Marketing Initiatives

Under the leadership of Chakrit Wichian, founder of Prodigy9 and now head of both software brands, InFocus is scaling its engineering capacity to meet sustained demand. The appointment of Sawit Soothipunt as Head of Business Development, a seasoned executive with over 30 years in digital transformation across Southeast Asia, has already yielded tangible results. His team’s efforts led to the recent contract wins, validating the company’s investment in dedicated marketing resources beyond executive-led business development.

Dual Growth Model, Enterprise Services and Digital Ventures

Beyond its enterprise services, InFocus is cultivating a dual growth model by launching InFocus Digital Ventures (IFGDV), focusing on frontier technologies such as artificial intelligence, blockchain, and digital assets. This initiative is supported by a funding agreement with Mythos Venture Partners, a prominent player in Southeast Asia’s digital assets sector. The partnership not only provides capital but also strategic advisory, positioning InFocus to innovate and scale next-generation products.

The company plans to deploy initial funds to acquire interests in the Monochrome Bitcoin ETF, offering exposure to Bitcoin while maintaining liquidity options. This move signals InFocus’s ambition to blend stable enterprise contracts with high-growth potential ventures, creating an integrated innovation engine.

Outlook and Market Positioning

InFocus’s focus on sectors undergoing rapid digital transformation, healthcare, logistics, insurance, and finance, aligns with broader regional trends. The company’s operational scale-up, combined with its strategic pivot to recurring revenue models and frontier technology investments, positions it well to capitalize on Southeast Asia’s expanding digital economy.

While revenue projections remain estimates subject to change as projects evolve, the early contract wins and leadership appointments provide a strong foundation for growth. Investors will be watching closely how InFocus balances its enterprise service stability with the risks and rewards of its digital ventures.