The Cirralto Ltd (ASX: CRO) share price has plunged almost 20% this month, with no major news announced. What's behind the Software as a Service (SaaS) company's share price fall seems to be a mystery.
Even more perplexing is Cirralto's rise over the last 12 months. An investor who bought shares in the company this time last year would find themselves up by 4,810% today. Even if you bought in at the start of this year, you'd be up by 127%.
So, what's the go with the Cirralto share price? Let's take a look.
Crashing on the pay now, pay later wave
Cirralto may well be the horse left at the start gate amongst buy now, pay later (BNPL) providers such as Zip Co Ltd (ASX: Z1P), Fatfish Group Ltd (ASX: FFG) and IOUpay Ltd (ASX: IOU).
All the above-mentioned company's share prices had incredible gains in February, and Cirralto was alongside them. In fact, in a single day in February, the company reached an intraday high of 22 cents, a 200% gain, without any news having been released.
When the ASX inevitably noticed this unexplained share price rise, the company stated it resulted from social media and market attention because of the BNPL frenzy of the time.
Cirralto provides digital payment services in the business to business (B2B) sphere, with one service that is essentially BNPL for B2B transactions.
Yet, the company hasn't seemed to rise to the opportunity as investors might have hoped. Next to nothing has been announced from Cirralto since.
Capital raising
While investor excitement in Cirralto bloomed, the company took the opportunity to raise some capital.
On February 22, the company announced an $18 million placement with firm commitments, mostly from institutional investors.
While the $18 million was to develop its BNPL technology, aside from a single update, we haven't heard much about it since.
Cirralto share price fall from grace
Between 26 February and 2 March, the company's share price fell by 27.27%.
Cirralto managed to gain 3 cents back when it announced news of an update to its B2B BNPL service, but that quickly petered out with only 0.9 cents able to stick.
The current Cirralto share price is 20% lower than it was at the start of the month, trading for 8.8 cents. Hopefully, any investors who bought at 22 cents are still holding out hope that the company can return to its former glory.
Cirralto has a market capitalisation of around $183.7 million, with approximately 2 billion shares outstanding.
