Ovanti exits BNPL globally to refocus on established iSentric business
Ovanti Limited (ASX: OVT) has resolved to entirely exit the buy now, pay later (BNPL) sector across all jurisdictions, following completion of a Board-level strategic review. The decision marks a decisive reset, shifting the Company’s focus onto its longstanding iSentric business, which generated approximately A$3.58 million in FY26 revenue.
The BNPL exit supersedes previously announced plans for a staged relaunch of IOUPAY and myIOU in Asia. In practical terms, the move eliminates a loss-making, capital-hungry division and pivots the Group towards an established, revenue-producing platform in Southeast Asia.
The IOUPAY and myIOU relaunch plans, announced as recently as July 2026 with two founding Afterpay executives appointed to the Advisory Board, have now been entirely superseded by this decision, underscoring the speed and finality of the Board’s reversal.
The release of the announcement was authorised by Josh Quinn, Non-Executive Director and Company Secretary, on behalf of the Board of Ovanti Limited.
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The strategic reset: complete exit from BNPL
The Board’s strategic review considered the performance, capital requirements, risk profile and commercial prospects of the Company’s BNPL activities. Following this assessment, the Board determined that continued investment in BNPL is “not in the best interests of shareholders.”
Ovanti will therefore cease pursuing BNPL products, operations and opportunities in every jurisdiction. Critically, no further capital will be allocated to relaunching or expanding BNPL operations.
The relevant United States BNPL entity “remains subject to proceedings under Chapter 7 of the United States Bankruptcy Code.” Ovanti has confirmed it will continue to cooperate with that process as required.
Substantial cost reductions implemented
Alongside the exit, the Company has implemented substantial cost reductions following the closure of the United States BNPL business. These measures include:
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Significant reductions in employees and consultants supporting the former United States operations
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Elimination of non-core expenditure
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Reduced reliance on external consultants across the Group
As previously disclosed to the ASX, a substantial proportion of the costs associated with the former United States operations has now been reduced or eliminated.
Understanding iSentric: Ovanti’s core revenue engine
With BNPL behind it, Ovanti is now exclusively focused on growing its longstanding iSentric operations. The business provides mobile banking, authentication, digital payments, transaction processing and related enterprise technology services.
Its customer base spans banking, telecommunications and corporate customers across Asia. In simple terms, iSentric supplies the secure software and infrastructure that institutions use to verify users and process financial transactions.
For investors, the distinction from the speculative BNPL bet is material. iSentric is an established, revenue-generating platform that produced A$3.58 million in FY26 revenue, positioned in Southeast Asia, a region the Board has flagged as offering significant growth opportunity.
| Focus Area | Former Approach (BNPL) | New Approach (iSentric) | Investor Impact |
|---|---|---|---|
| Revenue base | Staged relaunch of IOUPAY and myIOU cancelled | Established platform, A$3.58M FY26 revenue | Shift to a proven income stream |
| Capital requirements | Capital-hungry expansion | No further BNPL capital allocated | Capital preservation |
| Geographic focus | Expensive United States market | Razor-sharp focus on Southeast Asia | Leaner, disciplined cost base |
| Risk profile | U.S. entity in Chapter 7 proceedings | Existing enterprise customer relationships | Reduced operational risk |
Growth roadmap and immediate priorities
The Board has directed management to prioritise opportunities capable of substantially growing the Company’s existing revenue-producing operations. The immediate priorities are:
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Expand services to existing iSentric customers
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Secure new institutional customers
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Pursue opportunities with a clear and near-term pathway to revenue
Having exited the expensive United States market, the Company is now operating with a disciplined and sharply defined commercial focus on Southeast Asia. The combination of a materially reduced cost base and an established revenue stream is intended to provide a clearer path towards profitability.
Legal action against former U.S. BNPL CEO
Mr Peter Maher served as CEO of Ovanti’s United States BNPL business, a wholly owned subsidiary, the relevant entity of which is now subject to Chapter 7 proceedings. As part of its strategic review, the Board examined the circumstances surrounding the establishment, operation and ultimate failure of that business.
The Miluna SPAC termination in early March 2026 was an earlier signal that the U.S. strategy was losing coherence, with the Board walking away from a near-finalised NASDAQ merger for the Flote platform just weeks before the broader super app pivot and the Chapter 7 filing that followed.
The Company has engaged external lawyers and is preparing formal proceedings against Mr Maher personally. Litigation is “expected to commence imminently,” with Ovanti intending to seek recovery of its losses, damages, costs and all other available relief.
Ovanti is also examining the directors’ and officers’ insurance arrangements maintained by the United States entity, including whether the relevant policy may respond to any claim or judgment arising from Mr Maher’s conduct. Importantly, “the availability and extent of any insurance response have not yet been determined.”
Ovanti’s complete exit from BNPL marks a decisive reset for the Company. The substantial reduction in costs and exclusive focus on the established iSentric business provide Ovanti with a clear platform from which to pursue immediate revenue-generating opportunities and grow its existing operations.
A cleaner platform for growth
The complete BNPL exit, combined with substantial cost reductions and an exclusive focus on the revenue-producing, established iSentric business, leaves Ovanti with a more disciplined operating structure.
For investors, the strategic angle centres on three themes: capital preservation through halting BNPL spend, a near-term revenue focus anchored to an existing platform, and exposure to identified Southeast Asian growth potential. The reset repositions the Company around what it already earns, rather than what it hoped to build.
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