Currenc Group Inc's Strategic AI Pivot: A Pathway to Recovery and Long-Term Value Creation

Currenc Group Inc. (NASDAQ:CURR) has embarked on an ambitious AI-driven transformation in 2025, seeking to pivot away from its declining airtime transfer business and toward technology-enabled financial solutions. This strategic shift, while still in its early stages, has drawn both cautious optimism and scrutiny from analysts. By examining the company's Q1–Q2 2025 financial performance, operational updates, and market reactions, this analysis evaluates whether Currenc's AI pivot can serve as a viable pathway to recovery and sustainable value creation.

Financial Performance: Mixed Signals Amid Strategic Reallocation

Currenc's Q1 and Q2 2025 results reflect the challenges of transitioning from a legacy business model to an AI-centric strategy. In Q1, the company reported a Total Processing Value (TPV) of $1.30 billion through its Tranglo platform, a 3.7% year-over-year decline, primarily due to reduced demand in the Hong Kong market. Total revenues excluding TNG Asia and GEA fell to $10.0 million, down 11.5% YoY, driven by a 23.1% drop in global airtime revenue. The net loss for the quarter widened to $4.5 million, exacerbated by $2.2 million in incentive share expenses from the INFINT SPAC merger.

Q2 saw a modest improvement in TPV, which rose to $1.46 billion, a 6.9% YoY increase. However, total revenues excluding TNG Asia and GEA declined further to $8.7 million, a 10.3% drop YoY, as airtime revenue continued to contract. Remittance revenues, however, showed promise, growing 8.3% to $5.2 million, supported by an improved take rate of 0.36%. The net loss for Q2 expanded to $5.0 million, with $1.0 million allocated to AI initiative investments.

These figures underscore a critical trend: Currenc is deliberately reallocating capital from its shrinking airtime business to AI-driven projects. Operating expenses in both quarters were inflated by SPAC merger-related costs and AI investments, yet the gross profit margin improved to 37.2% in Q2 from 31.8% in Q1. This suggests that while short-term profitability remains under pressure, the company is making progress in optimizing its cost structure.

AI Strategy: From Concept to Execution

Currenc's AI initiatives are centered on two pillars: expanding AI-powered financial solutions for institutions and enhancing remittance services. By Q2 2025, the company had partnered with Galaxy Payroll Group to develop two modules for its "AI Staff for Hire" platform: AI HR Manager and AI Recruitment Manager. These tools aim to automate workforce management, a move that aligns with broader industry trends toward AI adoption in HR.

Financially, the company has committed significant resources to these projects. In Q1–Q2 2025, Currenc incurred $1.0 million in operating costs for AI initiatives, with management projecting incremental revenue contributions and EBITDA accretion in the near term. By Q3 2025, operating expenses related to AI had decreased to $0.4 million, indicating a more disciplined approach to scaling the strategy.

The strategic rationale is clear: Currenc aims to diversify its revenue streams and reduce reliance on airtime transfers, which have been eroded by free Wi-Fi adoption in Southeast Asia. As Alex Kong, Currenc's Founder and Executive Chairman, stated, the company's focus on AI innovation is intended to "meet the evolving demands of the AI era".

Market Reaction and Strategic Alliances

The most significant development in Currenc's AI pivot is its proposed reverse merger with Animoca Brands, a digital assets conglomerate. Announced in late 2025, the merger aims to create the "world's first publicly-listed digital assets conglomerate" on Nasdaq. The deal, which would see Animoca shareholders own 95% of the combined entity, triggered a 25% surge in CURR's stock price.

While the merger is expected to close in 2026, it signals Currenc's intent to leverage its AI and digital remittance assets to access broader capital markets. The company plans to spin off its AI-powered financial solutions and remittance platform to current shareholders before the transaction completes. This move aligns with improving regulatory clarity in the U.S. and positions Currenc to capitalize on the growing altcoin and Web3 economy.

Viability Assessment: Balancing Risks and Opportunities

Currenc's AI-driven transformation is not without risks. The company's first-half 2025 net loss of $9.5 million highlights the financial strain of transitioning to a new business model. Additionally, the success of AI initiatives hinges on their ability to generate scalable revenue-a challenge given the nascent stage of the technology.

However, several factors support the strategy's long-term viability. First, the gross profit margin improvement in Q2 demonstrates that Currenc can reduce costs while investing in growth areas. Second, the Q3 2025 financial results, which included a net income of $3.1 million, suggest that operational discipline is emerging. Third, the market's positive reaction to the Animoca merger indicates investor confidence in Currenc's pivot.

Analysts remain cautiously optimistic. As one expert noted, "Currenc's AI initiatives are still in the early innings, but the reallocation of resources from low-margin airtime services to high-growth AI solutions is a logical step" according to market analysis. The key will be whether these projects can achieve EBITDA accretion and drive revenue diversification.

Conclusion

Currenc Group Inc.'s AI pivot represents a high-stakes bet on the future of financial technology. While Q1–Q2 2025 results reveal ongoing financial challenges, the company's strategic reallocation of resources, early progress in AI product development, and the Animoca merger signal a commitment to long-term value creation. Investors must weigh the short-term risks of execution uncertainty against the potential rewards of a successful AI-driven transformation. For now, the path forward remains uncertain, but the pieces are in place for a compelling narrative-if Currenc can deliver on its ambitious vision.