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zuper

Platform:
Seedrs
Stage:
Expansion
Industry:
Business Services
Location:
International - Europe
Date Rated:
24/07/17
Raise:
£500,004
Equity:
10.42%
Valuation (Pre Money):
£4,298,499
Industry: Business Services
Location: International - Europe
Platform: Seedrs
£500,004 Expansion
Valuation: £4,798,503
Date Rated: 19/07/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: None

Business Summary

zuper is a European personal financial management app, providing users with insight into their spending habits once connected to their various bank accounts. The app has over 1,000 registered users and the company is ready to start rolling it out at a greater scale. These funds will be used to hire a marketing team and fuel their efforts, and some of the funds will be invested in further development.

Financial Overview

Dec-21
Date (y/e) Dec-17 Dec-18 Dec-19 Dec-20 Dec-21
Sales Dec-17€15,192 Dec-18€189,983 Dec-19€4,690,611 Dec-20€17,959,332 Dec-21€30,817,285
Gross Profit Dec-17-€8,808 Dec-18€165,983 Dec-19€4,666,611 Dec-20€17,935,332 Dec-21€30,793,285
GP as % sales Dec-17-58% Dec-1887% Dec-1999% Dec-20100% Dec-21100%
Overheads Dec-17€993,285 Dec-18€1,711,218 Dec-19€7,890,214 Dec-20€12,894,429 Dec-21€13,527,217
Operating Profit Dec-17-€1,002,094 Dec-18-€1,545,235 Dec-19-€3,223,603 Dec-20€5,040,903 Dec-21€17,266,067
OP as % sales Dec-17-6596% Dec-18-813% Dec-19-69% Dec-2028% Dec-2156%
Closing Cash Dec-17- Dec-18- Dec-19- Dec-20- -

Note: This financial information has been sourced from the company on 18/07/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd. NB, Valuation and Raise are in EUR, not GBP.
62%
SKILLS:
EXPERIENCE:
COMMITMENT:
The team covers many of the key business functions, but is currently missing a sales/marketing lead. The CEO's background in finance will be an asset.
The team is very experienced and the COO has a history of working in/with early stage companies, so he should be very familiar with the challenges they will face.
The CEO's loan of €900k and apparent absence of salary demonstrates serious commitment on his part but we have limited info on the other current and planned team members.
53%
MARKET:
PRODUCT:
COMPETITION:
The potential European market for PFM tools (unified under common banking rules and protocols) is large and the German domestic market is predicted to grow quickly through 2025.
The zuper app has had a large amount of development effort applied and is undergoing further improvements as its userbase grows.
There are a number of competitor services all taking advantage of harmonised banking rules and this is an area with regular new entrants, many well capitalised.
71%
PROFITABILITY:
CASHFLOW:
RETURNS:
zuper has provided a detailed set of financial projections supporting their business model however we question whether CAC of €27 dropping to €17 over time is realistic.
There is insufficient information available to fairly rate this aspect of the business
The team can point to many comparable acquisitions that indicate the most likely exit route. Investors should note 2 further major rounds are planned in the coming years.


Conclusion

zuper's experienced and professional team have completed the initial development of an app that is being received well by initial users. Ongoing development efforts will no doubt add further value for users, while introducing the key monetisation channels.

This is a very competitive sector, with a number of similar apps launching/already launched. Finding a way to stand out from the crowd is something they all seem to be struggling with, so in the meantime savvy marketing is key for each company's survival/growth. As such, it is disappointing that this function is currently unfilled at zuper, but this has been identified as an early priority for these funds.

Without a current cash position we cannot speak to any potential cashflow issues the company may have in the future, however investors should note that there is a planned raise of €8m in just over a year's time, and a further €20m at the end of 2019. Such amounts may cause significant dilution and so investors should be prepared to exercise whatever pre-emption rights they may have to protect their investment.

We would also question how this Seedrs campaign for €500k fits into the larger 'Series A' round of €1.5-2m included in the business model and financial model provided.

Related Links

Seedrs Pitch

www.getzuper.com

 

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The Ratings we publish have been approved and issued at Financial Promotions in the United Kingdom by Wheatfromchaff in the United Kingdom who is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. Wheatfromchaff Limited registered office is Kilver Court, Kilver Street, Shepton Mallet, Somerset, BA4 5NF and telephone number +44 (0) 1749 347 577. Telephone calls may be recorded. VAT No: 214 0196 49

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