Greetings, welcome to Treasure Global's first quarter fiscal 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Allison Soss, Senior Vice President, KCSA. Thank you. You may begin.
Thank you, operator. Good morning, everyone, and welcome to Treasure Global's first quarter fiscal 2023 earnings conference call. With us on today's call are Sam Teo, Chief Executive Officer, 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 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities and Exchange Act of 1934, as amended, including with respect to the company's recent IPO and the anticipated use of the net proceeds, as well as concerning future events. Words such as may, should, projects, expects, intends, plans, believes, anticipate, hopes, estimates, 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 for revisions or changes after the date of this call, except as required by law. It is my pleasure to introduce Sam Teo, CEO of TGI. Sam, please go ahead.
Thanks, Allison. Thank you everyone for joining us today. I will begin with highlights of the first quarter of fiscal 2023 and provide you with an update of the subsequent months. TGI Chief Financial Officer, Jaylvin Chan, will then review the highlight of our first quarter financial results. Following that, we'll be happy to take your questions. As you may know, it was just two weeks ago when we reported our fiscal year 2022 results, a key step toward regaining compliance with the Nasdaq. Today, with the filing of our first quarter fiscal 2023 result on the SEC Form 10-Q, I'm thrilled to note we have regained full compliance with our quarterly filings. The first quarter was defined by the successful completion of our IPO on August 10th, 2022.
We priced our IPO and the next morning began to trade on the Nasdaq Capital Market under the symbol TGL. This was a key milestone for TGI, providing us with important capital to support our growth. We generated gross proceeds of $9.2 million through the offering, which has included the full exercise of the underwriter over-allotment option. As our first quarter with results generated as a public company, we are pleased to report strong results for the first quarter of fiscal 2023, with total revenues of $15.6 million. Taking a step back, for those to our new story, Treasure Global is an innovative online-to-offline e-commerce platform that brings together the world of online e-commerce and offline physical retailers. We provide seamless payment solutions for consumers and merchants with instant rebate and effective cashback program.
Our vision is to develop a portfolio of leading digital platforms for use throughout Southeast Asia and Japan. TGI currently has two key products, ZCITY, our lead proprietary program, and most recently launched, Pace. ZCITY is a powerful, unique, and integrated app that simplifies the e-payment experience for consumers, while at the same time allowing them to earn rewards. ZCITY serves both consumer and merchant in ways that concurrently maximize value creation and enhance the shopping experience. ZCITY also gather important data insight on our customer demographic and spending habit through its innovative AI technology, which we believe is a unique market differentiator. In approximately two and a half years, we have built ZCITY up to have over 2.3 million registered user as of November 30, 2022, a milestone we were very proud of.
We continue to see enhanced rate of conversion in term of both active user and paid user. With conversion rate of 22% and 6% respectively. The proportion of user transacting 3x or more has increased from 4.6% to 46.7%, which is equivalent to a tenfold increase. We believe this show a promising market reaction as users become more familiar with our brand. This indicates the quality of ZCITY user has improved, as paid user are increasing their transaction frequency in our ZCITY app. Going forward, we are recent focused on increasing our user retention and engagement rate to growing gross profit through fiscal 2023.
In order to achieve this, TGI is launching new products and services development that will increase user rate and generate higher profit and margins. Yesterday, we announced that our game-changing digital food and beverage management system, TAZTE, is now available for all registered user on the platform after having been in beta testing since June of 2022. TAZTE is the first product as part of our solution strategy. It is a one-stop automated and customer management solution for F&B businesses that allow merchants to manage their system more efficiently with automated solution business and customer needs. TAZTE offer digital live processes, including e-menus, ordering and e-payment, transaction recording with online payment or QR digital payment technology. TAZTE smart F&B system provide a developer skill system that has been proven to reduce staff labor and offer a private domain of delivery services to access multiple dedicated delivery partners.
We are excited for user to begin leveraging the live version of TAZTE. We have a pipeline of additional features enhancement in the works. Enhancement include the ability to set discount, provide redemption, and reward to customer online, remove approval of staff action, instant refund for customers, drive-through food ordering, and pre-ordering deals. These features will help F&B businesses to better manage operational process and order forecasting, thereby reducing wastage of resources and increase revenue. Customer will be able to benefit when using TAZTE by accessing discount pricing in comparison to original menu price. User in the ZCITY platform will be trafficked to TAZTE, allowing merchant to benefit from the growing TGI user base of over 2.3 million registered user. TAZTE also has the ability to gather important data and customer insight, such as demographics, spending habits, purchase trend.
This allow merchant to identify opportunity to increase sales or optimize offering, helping them make smarter decision data and see how their business is performing from their mobile devices, anywhere, anytime. TAZTE use ZCITY CRM analytics software to attract and retain consumer through personalized data-driven engagement to generate greater profitability. We believe TAZTE will have the power to modernize the industry in Malaysia. The F&B sector currently involves several inefficiency that TAZTE has been designed to address by making operations smoother and achieving cost saving for merchants. There were more than 220,000 small to medium F&B business owner in Malaysia in 2021, with the market growing at annual rate of 5.1% since 2050. We are aiming for TAZTE to become the market leader in automated solution for the F&B industry.
Our beta testing yearly encouraging metrics in term of both increasing user engagement and order frequency. We expect TAZTE will improve engagement and stickiness between user and merchant, as well as gathering user data, adding to ZCITY offering as a key differentiator. In addition, we anticipate TAZTE will be a good revenue generator, that this revenue stream will become a significant contributor to TGI total revenue in the future. Turning to our strategy partner. As part of our growth strategy, TGI continue to target a variety of strategy partnership that will be broaden our market penetration, grow our user base, and drive revenue. As discussed on our full year call in November, we announced a partnership with iPay88, Malaysia leading payment gateway to become TGI exclusive payment gateway partner for ZCITY, as well as a partner for TAZTE.
User can use our secure platform and enjoy casual shopping experience with rebate when they shop with e-commerce and retail merchants through trusted and leading e-wallet provider, credit card, and online banking. Under the term of the agreement, 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. In addition, partnering with iPay88 provide access to a large F&B merchant list. As part of the agreement, iPay88 has begun to promote TAZTE as one of its exclusive collaboration partner, prompting the F&B merchant to sign up for TAZTE as their managed software as a service solution. Also, we look to partner with well-known regional brand as affiliate for ZCITY to drive user acquisition and revenue growth.
TGI has entered affiliate partnership agreement with well-known international travel brand, including Malaysia Airlines, Firefly, and Agoda. The company deemed the tourism industry to have a high growth potential as a revenue driver in the post-pandemic world now that the Malaysia have opened up after COVID lockdown. Further, TGI has partnered with multiple brands for ZCITY across several other sector, including fashion, grocery, hardware, pharmaceutical, banking, and petroleum partner, such as ZALORA, Watsons, Kering, Guardian, BIG Pharmacy, MR D.I.Y., Lotus's Malaysia, leading banks, and Malaysia larger petroleum provider. Our partnership with industry leader are key to our strategy to spread our brand to the wider audience. Lastly, we have entered into strategic brand partnership to be the sole marketing and selling platform on our e-commerce marketplace, Zstore.
This partnership allows ZCITY to provide our Zstore customer with tailored product offering while providing TGI with an additional revenue stream as a portion of product sales. Our first partnership of this category was enogy, a health and wellness brand, which their first product is now available on Zstore. As a strategic brand partner, TGI provide true promotional method for enogy products. First, promotion to be assisting in growing Z member database, and second, a combination of traditional and innovative digital marketing. The new revenue stream for enogy and other affiliate partner products sold on the ZCITY app will contribute to the acceleration of the TGI revenue growth and brand presence as we continue to expand in Malaysia. Now, I will pass the call to Jaylvin, who will review our financial result in greater detail.
Thank you, Sam. Good morning, everyone. Today, I will review our financial results for the first quarter ended September 30th, 2022, compared to the same period in 2021. Total revenue for the first quarter of fiscal 2023 was $15.6 million. This is approximately $4.8 million less than total revenues for the first quarter of fiscal 2022, which were approximately $20.4 million. This was primarily attributable to a decrease in product and royalty program revenue. ZCITY has over 2.3 million registered users and 234,000 monthly active users as of November 2022. We have experienced significant growth in users and consequently growth in revenue from users over the past 12 months. Quarterly active users as of September 30th, 2022, were up by 35% year-over-year.
A total of 0.7 million transactions by our registered user were transacted over the first quarter of fiscal 2023. Gross profit for the three months to September 30th, 2022, was $37,000 compared to $72,000 for the three months ended September 30th, 2021. The decrease in gross profit was mainly due to low product and royalty revenue as a result of the decrease in the E-voucher sales. Gross margin were approximately 0.2% for the first quarter of fiscal 2023, compared to 0.4% for the three months ended September 30th, 2022 and 2021 respectively.
The decrease in gross margin of 0.2% is due to our vendor increased the product price due to the decrease of the purchasing volume as our management decided to reserve more working capital in developing TAZTE within the ZCITY platform. In fiscal year 2023, our major focus is on growing our gross profit by increasing user engagement through the new products and services developments such as TAZTE to increase retention rates and generate higher profit and margin. Net loss was approximately $3.7 million for the first quarter, up by approximately $0.9 million from approximately $2.8 million for the prior year first quarter. On August 15th, we were pleased to close our initial underwritten public offering.
The company has received aggregate net proceed from the closing of approximately $8.2 million after deducting underwriting discount and commission and fee and other estimated offering expenses which amounted to approximately $1 million. After the completions of the underwritten initial public offering, following the conversion of the convertible note payable, net of unamortized discounts to equity, our working capital was able to change from a deficit of approximately $15.9 million as of June 30th, 2022, to a positive working capital of approximately $6.7 million as of September 30th, 2022. I will now hand the call back to Sam.
Thanks, Jerry. To conclude, we are pleased with the recent milestone we have achieved as we continue to grow TGI as a leading innovative e-commerce platform provider. We are focused on growing gross profit through fiscal year 2023 and beyond. We are confident we will do this by driving user engagement with new products and services such as TAZTE, resulting in increased profit and enhanced margins. TGI has already built and proven its infrastructure in Malaysia, and we are on track with the next stage of its growth plan of expanding further into the Southeast Asia region and Japan. We plan to grow into neighboring country markets of Indonesia, Japan, Vietnam, Philippines, and Thailand as part of our regional expansion. Our intention is to target Indonesia first, which has 10 x the population of Malaysia, a similar demographics and language to Malaysia.
We see strong parallel between Malaysia and Indonesia, which are both multi-ethnic and multi-religious society. There is therefore a strong opportunity to capitalize on several seasonal marketing campaign throughout the year around the various religious holidays and festivals. As the Southeast region continue to reopen after the COVID-19 pandemic, we are well-placed to penetrate this market. TGI's strong balance sheet and growth momentum will allow us to execute on regional expansion plan to a large total addressable market. This concludes our prepared remarks. Thank you all for joining us for today's call. As always, we appreciate the support of our investors, staff, and stakeholders who believe in TGI's mission to innovate as much as we do.
Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.