YuuZoo expects to earn S$33.4 million profits from sale of franchisee licences

SOCIAL e-commerce network company YuuZoo announced on Tuesday that it is expected to earn S$33.4 million in profits from the sale of licences to new franchisees.

The figure, as at February this year, was based on a valuation by a "big four" audit firm, said Singapore-based YuuZoo.

YuuZoo has signed new franchise agreements that cover 59 countries across Asia, Europe and Africa. These include agreements announced earlier for South Korea and Turkey, as well as new agreements in other fast-growing markets such as Poland, South Africa and Kenya.

Revenues and profits from the sale will be included in YuuZoo's accounts once the franchisees start operations.

The new franchisees are committed to collectively register a minimum of 5.7 million new users within a year from launch and 40 million users within three years. Citing market research, YuuZoo estimates that 5.7 million active users would generate a topline revenue of S$1.2 billion annually.