Good day everyone. Welcome to Treasure Global, Inc. second quarter fiscal year 2023 conference call. At this time, participants are in a listen-only mode. A question and answer session will follow management's remarks. This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of TGI's website and will remain posted there for the next 30 days. I will now hand the call over to Allison Soss, Investor Relations, for introductions and the reading of the safe harbor statement. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Treasure Global second quarter fiscal year 2023 earnings conference call. With us on today's call are Sam Teo, Chief Executive Officer, and Jaylvin Chan, Chief Financial Officer, and Jeremy Roberts, Independent Director. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from our management made within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including with respect to the company's recent IPO and the anticipated use of net proceeds, as well as concerning future events. Words such as may, should, project, expect, intend, plan, believe, anticipate, quote, estimate, and variations of such words and similar expressions are intended to identify forward-looking statements.
These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the Risk Factors section of the company's registration statement and final prospectus for the company's initial public offering filed with the SEC. Copies of these documents are available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements or revisions or changes after the date of this call, except as required by law. Now, it is my pleasure to introduce Sam Teo, Chief Executive Officer of TGI. Sam, please go ahead.
Thanks, Allison Soss, thank you all for joining us today. I would like to begin by reviewing our second quarter of fiscal year 2023 highlights, followed by an update on the subsequent months and our 2023 outlook. TGI Chief Financial Officer, Jaylvin Chan, will then review the highlight of our second quarter financial results. Following that, we'll be happy to take your questions. TGI continues to evolve as an innovative online to offline e-commerce platform, providing seamless technology-enabled solutions for lifestyle needs. We are developing a portfolio of digital platform for use throughout the Southeast Asia region and Japan. We are more than just a payment vehicle. With our app facilitating a diverse range of lifestyle function, our products bring together the world of online e-commerce with offline physical retailer, increasing convenience and offering instant rebate and affiliate cashback programs.
During the second quarter of fiscal year 2023, we were pleased to report total revenue of $20.4 million, improved gross profit up 68% year-over-year, strong active user retention rate up 98.1%. We were very proud to announce in December that TAZTE, our innovative digital F&B management system, was now ready and available. TAZTE is the first product as part of our solution strategy and will modernize the F&B industry in Malaysia by providing merchants with a one-stop automated solution to digitalize their businesses. The F&B sector currently faces many inefficiencies that we believe TAZTE will address, improving operational efficiency and achieving cost savings for merchants. TAZTE offers digitalized processes, including e-menus, ordering and e-payment, transaction recording with online payment or QR digital payment technology.
TAZTE smart F&B system also provide a developer skill system that has been proven to reduce staff labor and will offer a private domain of delivery services to access multiple dedicated delivery partners. There were more than 220,000 small to medium F&B business owners in Malaysia in 2021, and the market is growing at an annual rate of 5.1% since 2015. We are aiming for TAZTE to become the market leader in automated solutions for the F&B industry. We expect TAZTE to increase engagement and retention between users and merchants, as well as gathering user data and insights. During beta testing and since our official launch, we have gathered strong positive feedback from merchants on how TAZTE has helped them to improve operational efficiency and reduce costs.
TAZTE has the ability to gather important data and customer insights, such as demographics, spending habits, purchase trends, allowing merchants to identify opportunities to increase sales or optimize offerings. This enables them to make smarter decisions with data and see how their business is performing from their mobile devices anywhere, anytime. TAZTE use ZCITY as CRM analytics software to attract and retain consumer through personalized data-driven engagement to generate greater profitability. Our goal is to continue increasing user engagement through new products and services development, such as TAZTE, that will increase retention rate and generate better margins. At TGI, we continuously focus on innovation and the initial version of TAZTE made available in December was just the beginning. We also have a pipeline of extra features enhancement that our development team has in the work.
Brand enhancement include the ability to set discount, provide redemptions, and reward to customer online, remote approval of staff action, instant refunds for customers, drive-through food ordering, and pre-ordering deals. These features will help F&B businesses to better manage operational processes, thus thereby reducing wastage of resources and increasing revenue. In addition, customer will be able to benefit when using TAZTE by accessing discounted pricing in comparison to original menu prices. Turning to our strategy partnership, TGI continue to secure diverse strategy partnership, which is key to our marketing and growth strategy. These collaborations are important in broadening our market penetration, growing our user base and driving revenue. In January 2023, we signed an MOU with Boost, a regional full-spectrum fintech player.
As a continuation of our business collaboration with Boost, the new partnership will leverage on AI-based digital financing solution from Boost Credit, which offer a range of lending services such as working capital financing, invoice financing, and supply chain financing to financially empower small and medium enterprises. Boost Credit digital financing solution will be onboarded into TGI TAZTE program, connecting TGI with a growing network of merchants and F&B provider as potential user of our TAZTE and ZCITY platform. In addition, the partnership will increase TGI brand exposure, building awareness among the F&B businesses in Malaysia. In November 2022, we secured a partnership with iPay88, Malaysia leading payment gateway, to become TGI exclusive payment gateway partner for ZCITY, as well as a partner for TAZTE.
iPay88 will provide e-commerce and retail payment solution for ZCITY, not only in Malaysia but also additional Southeast Asian country, including Indonesia, Thailand and the Philippines, supporting ZCITY future regional expansion. Important for the growth of TAZTE, iPay88 also provide access to its large F&B merchant list. As part of the agreement, iPay88 has begun to promote TAZTE as one of its exclusive collaboration partner, prompting F&B merchant to sign up for TAZTE as their managed software as a service solution. These partnerships are key example of TGI executing on our strategy plan to secure relevant partnership in Southeast Asia, through which we can offer solution to their members and increase our reach and conversion to user on our channels. We have also secured strategy brand partnership to be the sole marketing and selling platform on our e-commerce marketplace, Zstore.
This partnership enable ZCITY to provide our Zstore customer with tailored product offering while providing TGI with an additional revenue stream as a portion of product sales. The first of this type of collaboration was Enogy, a health and wellness brand, who first product is available on Zstore. As a strategy brand partner, ZCITY provide two promotional strategies for Enogy product. Firstly, as promotion to assisting and growing ZCITY member database. Secondly, as a combination of traditional and innovative digital marketing. The new revenue stream from Enogy and other affiliate partner products sold on the ZCITY app will enhance the acceleration of the TGI revenue growth and brand presence as we continue to expand in Malaysia and Southeast Asia.
We also continue to look to collaborate with leading regional lifestyle brands as FPF for ZCITY to further drive user acquisition and revenue growth. Our partnerships with renowned industry brand are another important part of our strategy to spread our brand to a wider market. I will pass the call on to Jeremy, who will reveal our financial results in greater detail.
Thank you, Sam, and good morning, everyone. Today, I will reveal our financial results for the second fiscal quarter ended December 31st, 2023, compared to the corresponding period the year prior. Total revenue for the second quarter of fiscal year 2023 were $20.4 million. This is approximately $2 million less than total revenue for the second quarter of fiscal year 2022, which were approximately $22.4 million. The decrease was mainly attributed to the resources being allocated to membership subscription that generate revenue with better margin. As Sam has mentioned, we are focused on increasing margin and gross profit.
This has already begun to show in our results. With gross profit for the three months to December 31st, 2022 of $0.23 million compared to $0.14 million for the same period the prior year. This translates to the growth of 68% year-over-year. The increase in gross profit were primarily due to an increase in the membership revenue with higher gross profit margin. Our goal is to continue increasing user engagement through new product and services, such as recently launched TAZTE that will increase retention rate and generate higher profit and margin. ZCITY has over 2.3 million registered users and 240,000 monthly active users as of December 31st, 2022. Growth of quarterly active user year-over-year at December 31 is 8.8% higher than the prior year.
Active user retention rate for the quarter to December 2022 were 98.1% higher than in the second fiscal quarter the year before. We have acquired repeat user compared to new user, showing higher level of engagement on our platform that keep them coming back. A total of 0.9 million transactions by our registered user were transacted over the second quarter of fiscal 2023, up by 28% compared to the prior corresponding quarter. Net loss was approximately $2 million for the second quarter, down by approximately $1.2 million from approximately $3.2 million for the prior year's second quarter. The reduction of 36.7% year-over-year is mainly due to lower operating and other expenses.
Our operating expenses for the second fiscal quarter of $2.3 million were down 20.2% compared to prior corresponding period, mainly due to reduced selling expenses. Cash and cash equivalents were approximately $4.7 million as of December 31st, 2022, compared to approximately $7 million as of September 30th, 2022. TGI has a positive working capital of approximately $4.7 million as of December 31st, 2022. I will now hand the call back to Sam.
Thanks, Jaylvin. To conclude, we were particularly excited for our innovative new product, TAZTE, as well as the progress we made in advancing our strategy priority. We anticipate TAZTE to generate revenue, which will become a significant contributor to TGI total revenue in the future. A pipeline of extra features enhancement plan to further grow TAZTE. For fiscal year 2023, TGI continues to focus on increasing user engagement and margins. The company expect to achieve this through releases of innovative new products and solution, as well as executing its regional expansion plan into Southeast Asia and Japan. With a solid balance sheet and proven infrastructure, TGI is well-placed to achieve its strategy priority and further develop as a leading innovative e-commerce provider in the Southeast Asia region. This end our prepared remark.
Ladies and gentlemen, at this time, the management will not be taking any question and answers. I'd just like to turn the call over to Sam Teo, the CEO, for closing remarks.
Thank you again for joining us for today call. As always, we appreciate the continued support of our investor and stakeholder.
Thank you. The conference of Treasure Global Inc. has now concluded. Thank you for your participation. You may disconnect your lines.