Spendology, a Fintech licensing a digital-first SaaS-based travel money platform to retailers worldwide, has raised 117% (£351,210) of its £300,000 target (at the time of writing) through its crowdfunding campaign, carried out via Seedrs, with contributions from 199 investors.
Located in London, Spendology operates in the SaaS/PaaS Digital B2B sectors. The firm reports a Valuation (pre-money) of £1.3M. Incorporated in March 2016, the firm’s investment summary is: Type Equity; Equity offered 21.24%; Share price £0.15; Tax relief; EIS.
The company’s Business Highlights:
- £50m of UK currency turnover with dozens of travel clients
- First overseas franchise just launched in the US
- Interest from major US retailer with 1000+ stores
- Targeting top 28 countries for overseas travel
Key features: Secondary Market; Seedrs nominee min. £10.05 +; Direct investment min. £10,000.00 +.
As explained in the update, Spendology is a fintech that “has digitized the world’s favourite travel add-on, travel cash.” You may be surprised to learn “that 90% of Brits like to take cash when they travel overseas (Mintel), spending over £56bn each year (UNWTO).”
As a frequent traveler, chairman Don Clark was “frustrated by old fashioned bureaux de change and by travel agents not offering online ordering with home delivery for travel cash.”
He was inspired to change that, “just as he had done in his previous financial services business, which he sold for an 8-figure sum.”
Spendology’s digital-first platform “enables travel companies to sell travel cash to their customers.” Each order creates “an extra profit for them and a royalty for Spendology.”
Travel companies of all sizes, “anywhere in the world, can now benefit from Spendology’s SaaS solution.”
Spendology is live in the UK, has launched its’ first overseas franchise “in the US, and is ready for roll-out to 28 countries whose travellers spend $1trillion overseas.”
From Don Clark, Chairman:
“Our business model is to create an exponentially increasing royalty income, but with a moderately increasing operational cost.”
Spendology achieves that by doing the following:
- Spendology licences franchises around the world
- Franchises licence clients in their territory, eg travel agents, tour operators, airlines and personal finance
- Clients sell travel money to new and existing customers
- Spendology earns a royalty on every order
Additional revenues are generated through:
- A setup fee for each franchise territory
- Passing through all direct costs to the franchise
- Charging a day rate for all bespoke product development.
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