qwikwire investment pitch deck 6 2014
Post on 12-Jul-2015
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The Payment Solution for Planet Earth
From the $27B remitted
to the Philippines last
year, $15B went to
payments
$15B25 different countries
Cross-border Billing
( CNN – “What is driving the Philippines' surprisingly strong growth?”)
Cross-Border Billing
Mortgage Payments
More than 60% of properties sold in the
Philippines are purchased by expats.
Mortgage lifespan is 10-15 years with
perpetual payments on association dues.
Insurance/Social Security/Pension
Majority of expats still plan to retire in the
Philippines, so they continue to contribute
for their retirement and security.
Tuition Fees
Many support immediate and non-
immediate relatives to go to school.
Healthcare Expenses
Support for ageing parents for
maintenance, medications, checkups, &
emergencies.
Mortgage
Tuition
Problem: Cross-Border Billing60% of all real estate properties in the Philippines are owned by overseas workers,
and there is a big problem for overseas owners in paying their mortgage.
Currently there is no way for most expats to pay their mortgage directly from abroad. So
they have to send money to another person through a money-transfer service and hopes he
actually makes the payment every time. This has caused numerous problems between
families.
Current Solutions
• Customers leave post-dated checks for when payments are due.
• Checks may bounce if the bank accounts are not funded in time.
• Need to continuously fund the local bank account in the
Philippines
• Transfer money to relatives to pay on your behalf.
• No cross-border platform for bill payments.
• Terms and Conditions forbid people to use them for payments.
Indirect Payments
• Allows direct payments by partnering with property developers.
• No presence in the US and other major expat markets.
• Payments made manually by filling out payment forms at physical
offices overseas. No online credit-card or ACH options.
• No invoicing, auto-pay, or recurring billing services.
Direct Payment
Post-dated Checks
(Post-Dated Checks)
Recurring BillingAPI for Integration Invoice Generator
Solutions – Product Functionalities
Payments aggregation
will allow Institutions to
be able to set-up an
account and accept
credit card payments
using our API with ease.
We provide white-
labeled service to
partners for seamless
payment experience.
This will allow our
partners to send
invoices to any email
and receive payments
from anywhere in the
world via credit-card and
ACH bank-to-bank.
This will enable large
businesses and
institutions to collect
payments via recurring
invoice or auto-
payments from their
clients overseas.
Solutions – Strategic Partnerships
Our processing capabilities allows us to collect payments from anywhere in the world.
Funds are distributed to businesses and institutions through our localized banking partners
PROCESSING DISTRIBUTION
Credit Cards
ACH Transfers
1,700 bank branches
12,000 payout centers
User Friendly Forms
Recurring BillingInvoicing Auto Pay
Money Transfer iRemit* Check
Qwikwire VS. AlternativesCross-border Payment Collection for Real Estate Developers
Qwikwire
YesDirect Collection No Yes Yes
Auto-Pay
Invoicing &
Recurring Billing
Online Payment-
Credit Card & ACH
No No
Yes
Yes No
No No No
Yes Yes No No
Access to US and
Global MarketsYes NoNoYes
Share & Save is the first sales lead
generating tool embedded in the payments
process flow. This tool has gained intense
interest with property developers because
next to payments, sales lead generation is
their biggest challenge.
Launching - Share & Save Tool
• Additional revenue source
• Uses Facebook feed
• Free for property developers
• Two way discount structure
• Regularly scheduled ad posts
Share & Save
How it works – Receive an Invoice
Customer will
get an invoice
via email. Then
they will click
the “Pay Now”
button.
Payment Page
After
logging in,
they will be
redirected to
a payment
page.
Payment Page
Yes!- ₱100.00
No- ₱0.00
Do you want a ₱100.00 discount on this bill? Agree to post this ad on Facebook.
After
clicking the
“Pay Now”
button, they
will see this
pop-up
AXIS Residences
Location: Gateway Garden Heights, Pioneer Street
• Only 15,000 a month• No down payment option• Near mall and subway station• Great schools nearby
Get a P20,000 discount on your purchase by clicking this link.
Ad Post
The property developer uploads all the contents for the
ad post. They can choose whatever property they want
to promote
Commission Structure
Buyer = $400
= $4,000
Poster = $400
$80K
At 6% commission from the sale, Qwikwire makes $4,800 and shares it with poster
and buyer.
$5.6BMortgage Payments
Market Size: Philippines in 2015
x$400
Avg. Monthly
mortgage
1.2MEst. Overseas
Property Owners
Addressable Markets - 2013
Healthcare, Insurance, and Tuition Payments
$9.6B
$12.5BTotal Property Sold in the Philippines per year
+ 2.5%
FX Spread
2.9%
Credit Cards
5.4%
Revenue
=
Revenue Model - Billing
$810MPotential revenue
from billing in the
Philippines alone
6%
Broker/Agent
Commission
$12.5BReal Estate
Sales
=
Revenue Model – Share & Save
$750MPotential revenue from
sales commissions in
Philippine real estate
Agent
Commission
$810MBilling
Revenue
=
Revenue Potential – Real Estate/Billing
$1.6BPotential revenue in the
Philippine billing market
$750M
-Closed a deal with 5 property
developers to build their payments
collection platforms in 3 weeks
(20,000 units)
Traction
- and partnered with these banks:
Team
● Started MoneyTran, an online money-remittance service for Filipino expats
● Know-how in regulations and industry money logistics
Ray Refundo
Team Lead
● 12 years experience in fintech & payments related platforms
● Projects - PDIC, Central Bank of the Philippines, Western Union
Bing Tan
Tech Dev
● Finance & Accounting background - Senior Auditor at Deloitte
● Industries - Media & Telecom, Venture Capital, SaaS, Gaming
Scott Yu
Finance
Investors & Advisors
Founder of Searchfuse & Investor to Y-Combinator startupsJon Edward Santillan
#1 accelerator in SE Asia. Vast network of industry expertsJFDI Accelerator
Marketing Strategies – Acquiring Users
Partnerships with property developers and insurance companies
collecting bill payments from abroad as a white-listed service will
allow us to gain instant access to millions of existing customers.
Very effective conversion with online merchants. Online merchants
have dozens of groups in social media platforms.
Will allow us to gain credibility to first time users doing research
on our service.
Will be most effective to merchants who have already signed-up.
Referral bonuses and other incentives to share the service will be
regularly sent.
Direct Partnerships
Email Campaigns
Publicity & Blogs
Social Media and SEO
Risks Mitigation
Systems Risks
SSL Certification and PCI compliance combined with industry
standard system security will minimize the risk that the
application will be damaged from attacks.
Transactional Risks (Fraud)
The system is not open to non-white listed merchants and
businesses, minimize transactional fraud to occur.
Regulatory Risks
Partnerships with larger and regulated institutions will most likely
dampen the impact from any changes in the laws.
Market/Competitive Risks
We will remain stealth by providing a white-labeled service for
our real estate clients. In addition, having an open dialog with
our clients will help us understand their process and create
value beyond direct collections.
Raising – $400,000
Payout Cash Reserve
• This will not be expensed but will only serve as reserve between
pending transactions and actual payout
Product Development
• Current team plus hiring 1 more back-end engineer & 1 front-end
developer$83,000
General Administrative & Operations
• Founders’ living expanse allowance
• Office staff, customer service, marketing team salaries
• Hosting, Utilities, Office lease and other expenses
Sales & Marketing
• Sales & Marketing staff will mainly consists of interns. Meal & travel
expenses will be paid for. Contractor salary will be offered after
internship based on performance)
• Sales awards & commission
• Marketing / Advertising & Sponsorship expenses
$35,000
$170,000
$50,000
Licenses & Other Fees
• Regulatory compliance atty. fees, AML & KYC compliance, bonds
• Upgrading our underwriting account with partner banks in the US
$20,000
2014 2015 2016
Number of R.E. Developers* 3 6 10
Number of Condo Units* 11,278 45,768 79,571
Transaction Revenue $ 2,022,790 $ 8,209,076 $ 14,272,053
FX Revenue $ 1,246,090 $ 5,057,001 $ 8,791,951
Total Revenue (U$D) $ 3,268,880 $ 13,266,077 $ 23,064,004
Cost of Processing** $ 915,286 $ 3,714,502 $ 6,457,921
Sales & Marketing*** $ 23,760 $ 47,360 $ 127,360
R&D Expense $ 64,800 $ 194,400 $ 464,800
G&A $ 143,880 $ 143,880 $ 250,480
EBIT $ 2,121,154 $ 9,165,935 $ 15,763,443
Financial Projections
**This includes payment to the underwriting banks for credit cards and ACH transactions. Gross margin is at 72%.
* There are almost 350,000 existing and under construction condominium units in Metro Manila. This market size represent only a
fraction of real estate market in the Philippines. Figures are from Colliers Report for real estate in prime locations in Metro Manila.
Although these figures does not represent total available residential stock in Metro-Manila, it should be sufficient to give us a solid
and conservative outlook. In addition, about 30,000 new units are built and added to the market each year.
CNN - Why are more foreigners buying condos in Manila?)
***Sales & Marketing expenses mainly consist of Meal & travel for interns. Salaries are under G&A expenses
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