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Baanx

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Baanx is a B2B2C Mobile Banking Platform - managing a global blockchain alternative financial system.

108%
 - 
Funded 30 Jan 2020
£600,000 target
£658,200 from 539 investors
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Business overview

Location London, United Kingdom
Social media
Website www.baanx.com/
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 11155938
Incorporation date 18 Jan 2018
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Investment summary

Type Equity
Valuation (pre-money) £7.9M
Equity offered 7.68%
Tax relief

EIS

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Business highlights

  • Mobile Banking which is Digital Asset & Cryptocurrency friendly
  • Innovative customer acquisition via partner communities
  • Launched Baanx App and 3 Partner branded Mobile Banking Apps
  • Cutting-edge services in remittance, spending & blockchain
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Key features

  • Secondary Market
  • Nominee investment min. £25.00 +
  • Direct investment min. £50,000.00 +

Idea

Introduction

Baanx is a Mobile digital banking application, payments engine and cryptocurrency platform. September 2019 saw Baanx Group launch GBP & EUR Debit Cards & Virtual Accounts across 30 countries through the Baanx App and Banking brands via our white-label solution.

Our customer acquisition process is innovative, as we aren't just B2C, but B2B2C - which means we piggy-back on successful brands' customer bases to avoid high customer acquisition costs and can expand fast.

Baanx:

- Partner with a successful and proven user community
- White-label as them, launching through our fast-deployment model
- Fully manage all the operations and ensure compliance

Baanx CL already has a CL™ VISA Debit Card, a Crypto-Exchange, Crypto-Payment Gateway with high limits, Stablecoins and exciting features, like enabling users to send Crypto & Stablecoin by SMS - tethering addresses to Mobile Numbers to finally make Cryptocurrencies easy to use, send and spend.

Intended impact

In short, the Baanx vision is highly ambitious. We are building an alternative financial infrastructure, running adjacent to the existing financial system from end-to-end. Harnessing the potential of blockchain technology to launch mobile banking brands that connect user communities together in the Baanx network.

Powered by an internal blockchain platform we are able to create efficiencies in banking, international remittance and provide easy access to banking services for everyone - from HNWs through to the under-banked - and aim to take revenues and profits away from traditional banking and fintech to return to user communities in big savings; returning value through reward schemes and innovative financial products.

Baanx is partnering with new brands in new countries and regions, most of which are not in banking already, but have large user communities to connect together - this model allows us to grow our financial network.

Substantial accomplishments to date

- Baanx began in January 2018

- Later in 2018, we started our first equity Seed round, which closed January 2019 having raised £870,000 from Angel Investors.

- By 2019, we had an MVP, the iOS app for our Baanx B2C brand, offering secure digital wallets, stablecoins and one of the most user-focused mobile cryptocurrency exchanges on the market.

- Around the same time, we launched our first white-label product, partnering with a blossoming investor community.

- The Baanx platform has almost 10k users signed up to date and has successfully delivered three Mobile Banking brands with Debit Cards, Virtual Accounts, which crucially, are Blockchain & Digital Asset enabled and approved - a rare product which we are so proud of and excited to keep building!

- Baanx is aiming for a target of 100,000 users by Q2 2020 with the help of Super Seed Investors in this Investment round.

Monetisation strategy

Baanx generates revenue from:

- Launching partner mobile banking brands to user communities. We charge a one off License fee and a monthly maintenance and license fee (SAAS model)

- Providing Mobile Wallets to all users. We charge small % of transactions.

- Debit Cards & Virtual Accounts to Baanx users and user communities of our Partner brands. We retain a small % of transaction fees.

- Crypto-Exchange Sales.

- Wallet-to-Wallet Transfers by SMS - Mobile Texting of Cryptocurrencies.

After the Super Seed we plan to roll out:

- Lending Services.

- Savings Accounts.

- Budgeting.

- Native Currency Debit Cards including USD and cards in Asia & South America.

- International Remittance services with FX integration to connect our user communities across the globe.

Use of proceeds

Baanx will give a free Debit Card to all investors in the Super Seed round in optional currencies GBP, EUR and shortly USD, we look forward to sending you yours!

With the proceeds Baanx will:

- Hire additional team members to grow our team of 16 to 25 to handle launching new brands

- Spend funds on marketing (conferences, upgrade website + marketing materials).

- Spend funds launching our services in Asia and South America

- Deliver further currency cards to connect to our partner communities

Key Information

Company Structure

- Investee Company - Baanx Group Limited

The investment in this round will be made into Baanx Group Limited (BGL), which owns the IP and technology subsisting in the platform. It is the entity providing managed services to clients as well as managing the operations of the platform and mobile apps

Managed services include managing mobile applications such as technology and user support, development and release, as well as compliance, operations, KYC, legal elements and providing all staff to run the apps and operations.

Managing the actual full end to end delivery of all services to the users of the platform for both Baanx App and all white-label apps.

- Wholly-owned subsidiary - Baanx.com Ltd

This company owns the B2C app and all services provided by Baanx.com Ltd are managed by BGL. Prior to closing Baanx.com Ltd will become a wholly-owned subsidiary of BGL.

Related Companies

The founder of BGL separately owns the following companies, which operate in the industry. The intention of the founder is that these companies, along with BGL, will be consolidated under a single holding company in the future. The shareholding in the new holding company will replicate the shareholdings in BGL immediately after this internal restructure, such that shareholders in BGL will own the entire group of companies should the restructure be carried out.

Please note that all payroll and other costs associated with running the below companies are borne by BGL.

- Global Business Holdings (currently 100% owned by Garth Howat)

This company is the issuer of the Currency Life card, owns the partnership with VISA as well as other partner banks, and the “Currency Life” trademark.

- Emoney Cards Ltd (currently 100% owned by Garth Howat)

This company is currently applying for an e-money license with the Central Bank in Lithuania.

- Optimal Search Ltd (currently 80% owned by Garth Howat and 20% by another individual)

This company is a credit-broking company based in the UK and provides lending services elsewhere in the EU and elsewhere. In the future, the company intends to provide services to Baanx Group Limited. Optimal Search Limited has FCA licensed abilities to facilitate lending services between a lender and the end receiver of the loan.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited (trading as Republic Europe) ("Republic Europe"), which is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Republic Europe platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Republic Europe platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £7,856,000

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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