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MishiPay

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Building innovative self-checkout solutions to enable frictionless shopping in stores.

107%
 - 
Funded 19 Jun 2024
£3,300,005 target
£3,557,590 from 164 investors
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Business overview

Location London, United Kingdom
Social media
Website mishipay.com/
Sectors SaaS/PaaS Digital B2B
Company number 09717666
Incorporation date 4 Aug 2015
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Investment summary

Type Equity
Valuation (pre-money) £25M
Equity offered 12.45%
Tax relief N/A
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Business highlights

  • Processed £74M in transaction value in last 12m
  • Backed by Nauta Capital, American Express and United Ventures
  • >1% of the UK population used MishiPay in Dec'23
  • Live in 400+ stores globally
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Key features

  • Secondary Market
  • Nominee investment min. £81.54 +
  • Direct investment min. £50,000.00 +

Pitch

About the Campaign

Mishipay is transforming the retail shopping experience with our innovative self-checkout solutions that empower customers to shop in-store with unprecedented speed and convenience.

Our full product suite includes our Scan & Go App, self-checkout kiosks, mobile POS and cash desks which have the ability to process 100% of the store transactions.

Mishipay's self-checkout solutions are now being used by 30 brands across 407 stores worldwide, including Flying Tiger Copenhagen, Muji, Hudson News, Dubai Duty Free, Grandiose and Virgin megastores.

Market Opportunity

Retailers are estimated to lose $341B in lost sales annually due to long queues at checkout. *Unified Commerce Retail Report 2019. We are helping retailers recover these lost sales while also reducing their stores’ costs and improving the in store checkout experience. Our research shows that Mishipay's mobile first, cloud native approach to checkout results can result in up to 80% lower capex for the stores.

We have seen as much as 78% of the transactions move from tills to self checkout. This is one of the main reasons why Flying Tiger, Copenhagen, a retailer with over 900 stores in Europe have made MishiPay the only method of checkout in 58 of their UK stores since last year.

These are the benefits we have delivered with some of our key retailers:

Traction & Key Accomplishment

• £74M in transactions processed with MishiPay in last 12m

• 1.37M checkouts in Dec'23

• 129% growth in ARR and >1100% growth in transactions in Dec'23*

• 407 stores live with Mishipay solutions across 30 brands

• Customers include Flying Tiger Copenhagen, Muji, Carters', and Hudson News.

• Total funding of £11M raised till date from investors such as Nauta capital, American Express Ventures, United ventures and family offices active in the retail industry.

• Ranked in the Sifted Top 100 ‘24 list of UK's fastest growing startups.

*based on unaudited management accounts.

Team

Mustafa Khanwala is the Founder & CEO, an Engineer from UCL and an entrepreneur at heart. In 2019 he was listed in the Forbes ‘30 Under 30’ and has won the UCL ‘Bright Ideas’, and Top 10 shortlisted for Mayor of London’s International Student awards. It was when he was standing in a queue waiting to buy a can of coke for 20 minutes at Lidl that he identified the need to digitise the in store shopping experience.

Mustafa is supported by our Chief Product Officer Theo Sotiriou and Swati Phadke, CFO & COO.

This led to the launch of the first product Scan & Go and evolved into a full product suite which can now cater to different types of checkout journeys being used by our customers across the world.

Business Model

MishiPay's ability to process 100% of the store transactions presents a strong monetisation opportunity. We are currently earning revenue in 3 ways:

B2B subscription; We charge retailers a fixed subscription fee per store per month.

Transaction Fee; In order to monetise the value that we deliver behind every transaction, Mishipay charges the retailer a transaction fee as a % of the value of transactions completed using MishiPay.

Payment Processing Fee; MishiPay onboards retailers on our own marketplace with our preferred payment provider, aggregating volumes across retailers to get an attractive buy rate from the payment provider. We share the benefit of this lower rate to the retailer and at the same time retain some of it.

Use of Funds

In the last 2 years we have been busy developing a full suite of checkout solutions which can cater to every type of buying journey in stores. With this funding round we aim to achieve profitability by Q4 2024 and continue our strong ARR growth.

A significant portion of the round funds will be invested in growing our sales and customer success teams in our key markets of Europe, US and Middle East.

We will also be spending a part of the funds in B2B marketing activities to drive awareness

Key Information

Share Price

Please note, the share price for the round received by direct investors is £81.53521. Due to rounding, Seedrs investors will receive a share price of £81.54.

Share Classes

The Company currently has 6 classes of shares: Series A, Series A1, Series A2, Series A1+, Series A2+ and Ordinary Shares. All investors reflected in this round, including Seedrs investors, will receive Series A1+ Shares.

All classes of shares hold voting rights. The Series A2+ are held only by Amex, a regulated bank, and therefore have certain regulatory and voting restrictions.

Liquidation waterfall:

On a liquidation, return of capital or exit, the proceeds will be distributed as follows:

- First, Series A1+ and Series A2+ Shareholders shall receive 1x their initial investment amount back;

- Second, Series A, Series A1 and Series A2 Shareholders shall receive 1x their initial investment amount back; and

- Finally, Ordinary Shareholders will share in the remaining proceeds pro rata to the number of shares held,

Provided that if the holders of Series A, Series A1, Series A2, Series A1+ or Series A2+ Shares would be entitled to a greater amount if the proceeds were distributed to all shareholders on a pro rata basis (according to the number of shares held), then the above waterfall will not apply and the proceeds shall be distributed to all shareholders pro rata.

Anti-dilution
Series A, Series A1, Series A2, Series A1+ and Series A2+ have anti dilution rights on a broad-based weighted average basis. This means if shares are issued at a price below the price that the shareholders invested at, they will be issued new shares to mitigate the dilution suffered.

Debt

The company has the following outstanding loans:

1. $271,779.60 loan from Founder Path at an interest rate of 18% per annum. The loan is repaid in monthly instalments and has $56,620.75 remaining. The final repayment date is 2 Oct 2024.

2. £50,000 bounceback loan from Natwest loan at an interest rate of 2.5% per annum. The loan is repaid in monthly instalments and has £20,852.05 remaining. The final repayment date is 17 May 2025.

The funds raised from this investment round will not be used to repay these loans.

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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

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 campaign for MishiPay has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 24 May 2024 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

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 £25,001,469

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

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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

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