UK Payments Fintech PonchoPay Secures £393K+ in Funding via Seedrs

PonchoPay says it is on a mission to streamline payments in the childcare ecosystem.

PonchoPay has raised 98% (£393,383) of its £400,012 target from 86 investors with 26 days left in the firm’s crowdfunding campaign, carried out via Seedrs.

Based in London, United Kingdom, Ponchopay operates in the Finance & Payments (Digital Mixed B2B/B2C) sectors.

Incorporated in September 2020, the Fintech firm’s investment summary is as follows: Type Equity; Valuation (pre-money) of £4.5M; Equity offered is 8.16%; Share price is £19.05; Tax relief; EIS.

Business highlights include:

  • Thousands of childcare payments already handled
  • Immediate pipeline & LOIs worth tens of millions
  • Nearing a partnership with major global payment processor
  • Accenture’s Fintech Innovation Lab 2023 Cohort

Key features:  Secondary Market; Seedrs nominee min. £19.05 +; Direct investment min. is £20,000.00 +.

As noted in the update, PonchoPay aims to change “the way parents pay for childcare and access the government funding they’re entitled to.”

Hundreds of millions of pounds of government “support available to parents is going unspent each year due to poor awareness, clunky processes and a low adoption of technology.”

PonchoPay is making it easy for “any source of funding to be aggregated at point of checkout, saving parents money and saving childcare providers a significant amount of time in the process.”

Using Poncho Pay’s intelligent automation engine, their vision is “for parents to be able to quickly access and use this funding across all childcare providers that are registered to receive them nationwide.”

As they build their role in the payment journey, PonchoPay will be well positioned to offer additional services in future “to parents and childcare providers alike. Growth capital and insurance solutions for childcare providers, Buy Now Pay Later for parents and AI-powered booking curation tools are a handful of additional revenue sources that we plan to explore in the future.”

Monetization strategy

Their revenue source is generated through “a per-transaction percentage fee, which is billed to the childcare provider at the end of each month.”

Although they do not process any payments ourselves, the PonchoPay software assists parents and childcare providers alike “through the process of accepting, managing and reconciling all payments including government subsidized ones.”

Their monthly charge is thus a reflection of “the total value of transactions we’ve managed for the childcare provider in the preceding month.”

Their future monetization plans could potentially “include adding embedded finance options via bank accounts, enabling payouts from government schemes directly to a PonchoPay-powered bank account.”

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