invoizPAID

1. Providing African SME’s with quick & easy access to
short term working capital

2. African (Nigerian) SMEs have difficulty accessing working capital
●Requirement of security deposit such as land
●Lengthy documentation and application process
●High interest rates and bank charges
●Shortage of lending capabilities by bank
●Degrading payment terms from large clients
SOURCE: ASSESSMENT OF THE PROBLEMS AND PROSPECTS OF SMALL AND MEDIUM ENTERPRISES (SMES) IN NIGERIA, 2015, Oluwagbenga
Asuni Hakeem

3. How invoizPAID provides SME’s with working capital ?
Invoice Discounting
Trade Finance
(eCommerce)

4. Invoice Discounting
Mexico
South Africa
Chile
Nigeria
$31b
$1143b
$416b
$21b
$277b
$28b
$481b
$0.1b
GDP Invoices Factored
Source: Factor Chain International, 2014
● Low penetration in Nigeria
● Potential for $10-15bn of invoices
discounted per year
2.7%
5.0%
10.1%
<0.1%

5. Invoice Discounting - how it works
Step 1SME Onboarding
Auditing &
Verification
Bidding &
Disbursement
Collection
invoizPAID’s main focus is on a subset - invoices from blue chip companies
Supplier is approved and
onboarded on the platform
after invoizPAID’s initial due
diligence
Supplier and invoizPAID sign a
one-time Master Factoring
Agreement
Once approved, Supplier
uploads invoice and e-signs
invoice assignment
invoizPAID validates invoice
with Debtor and provides
signed assignment instructions
A banking partner confirms
domiciliation of proceeds into
a non-checking account with a
lien on behalf of invoizPAID
invoizPAID agrees on a bidding
range with Supplier and
prepares a brief for lenders
invoizPAID picks the best
bid(s) within the offered range
and proceed with transfer of
up to 80% of invoice value
invoizPAID has Guarantee
Funds to ensure Supplier gets
the funds within the agreed
bidding range even if lenders
don’t bid at the right range
Debtor transfers proceeds at
maturity into the domiciled
account
invoizPAID deducts the
principal and interest from the
proceeds and leaves the rest in
the Supplier account

6. Invoice Discounting- Online platform for discounters and lenders (beta)

7. ● Launched pilot 6 months ago
● $200k of invoices funded
● 16+ deals
● 5 lender partners
● 4 blue chip companies
● 2000 suppliers of blue chip
● 0% default
● $22k in interest income
Invoice Discounting - After a successful pilot, we are preparing to scale
Currently have in the pipeline
on-hold, high-quality invoices
from Nestlé worth $1m per
month.

8. ● Launched pilot 2 months ago
● $60,000 worth of loans
● 8 merchants
● Average size of loan = $7,000
● Online sales have grown x2
Trade Financing (eCommerce) - Pilot Ongoing

9. Trade Financing (eCommerce) - how it works
Step 1Merchant Screening
Business
Verification &
Auditing
Training &
Support
Disbursement
& Collection
Merchant is shortlisted based
on the following key
requirements :
● Selling online for at
least 9 months
● Have at least $1000 in
monthly sales
● Deliver at least 15o
items every month
Once the merchant has been
shortlisted, invoizPAID then
carries out due diligence by
visiting the merchant's business
premise.
invoizPAID validates the
merchant's inventory size.
invoizPAID trains the merchant
on how to to grow their
business online via an
induction bootcamp & 6 week
training programme.
The merchant also receives
free business advice &
support from invoizPAID
After the induction programme,
invoizPAID disburses the
funds to the merchants
invoizPAID deducts the
principal and interest from the
merchants weekly sales on
JUMIA.
invoizPAID’s main focus is on micro entrepreneurs

10. Trade Financing (eCommerce) - the impact so far
Source: Merchants sales data from the last 8 weeks (22nd March 2017)
2x
Growth

11. invoizPAID’s competitive edge
Nigerian SMEs prefer invoizPAID against traditional players :
● Speed - Response within 48hours, after the initial due diligence (fast-track)
● Business Friendly - No collateral or cumbersome paperwork
● Focused - Only one focus, short term trade financing for SMEs
● Competitive Rates - Multiple lenders bid against the same opportunities
● Unrivalled Support - Free growth hacking & business advisory sessions

12. Led by a talented and recognized Nigerian entrepreneur
● 3 national awards (Microsoft, Airtel &
AEA)
● Authored the National Standard &
Guideline for IT Incubation Centers
in Nigeria
● Listed as being among the top 50
innovative entrepreneurs in Africa -
Afrika4Tech
Daniel Isa
(Founder & CEO)

13. Supported by Seedstars
Tunde Akinnuwa
Managing Director,
Seedstars Nigeria
Joy Uzuegbu
Chapter Lead,
Growth & Marketing,
Seedstars Nigeria
Luis Rodrigues
CTO, Seedstars
Pierre-Alain Mason
Managing Partner,
Seedstars
Seedstars has an
active presence in 65+
emerging markets and
has currently
investments in 7
markets
More info @
Seedstars.com
Chijioke Ukwuegbu
CFO
invoizPAID
*

14. Next Steps
● Secure seed funding of $600k
● Access to a line of credit of $15m
● Already secured $500k from Seedstars Capital

15. Thank you for your attention!
daniel@invoizpaid.com