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Spendology

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Spendology is a fintech licensing a digital-first SaaS-based travel money platform to retailers worldwide

121%
 - 
Funded 13 Nov 2023
£300,000 target
£374,053 from 204 investors
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Business overview

Location London, United Kingdom
Social media
Website www.spendology.com
Sectors SaaS/PaaS Digital B2B
Company number 10059951
Incorporation date 13 Mar 2016
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Investment summary

Type Equity
Valuation (pre-money) £1.3M
Equity offered 21.83%
Tax relief

EIS

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Business highlights

  • £50m of UK currency turnover with dozens of travel clients
  • First overseas franchise just launched in the US
  • Interest from major US retailer with 1000+ stores
  • Targeting top 28 countries for overseas travel
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Key features

  • Secondary Market
  • Nominee investment min. £10.05 +
  • Direct investment min. £10,000.00 +

Idea

Introduction

Spendology is a fintech that has digitised the world’s favourite travel add-on, travel cash. You may be surprised to learn that 90% of Brits like to take cash when they travel overseas (Mintel), spending over £56bn each year (UNWTO).

As a frequent traveller, chairman Don Clark was frustrated by old fashioned bureaux de change and by travel agents not offering online ordering with home delivery for travel cash. He was inspired to change that, just as he had done in his previous financial services business, which he sold for an 8-figure sum.

Spendology’s award-winning digital-first platform enables travel companies to sell travel cash to their customers. Each order creates an extra profit for them and a royalty for Spendology.

Travel companies of all sizes, anywhere in the world, can now benefit from Spendology's SaaS solution. Spendology is live in the UK, has launched its’ first overseas franchise in the US, and is ready for roll-out to 28 countries whose travellers spend $1trillion overseas.

Substantial accomplishments to date

* UK launch in October 2019

* Dozens of UK clients, including in-house brand, Travel Money Club

* Digital Startup of the Year - BIMA Awards 2018

* Best Travel Money Retailer Silver Award - British Travel Awards 2019

* Over 5,000 "excellent" reviews on Trustpilot

* £50m of currency sold in the UK

* Proof of concept achieved

* First overseas franchise secured April 2022 with $23bn travel giant, Internova Travel Group

* First US travel industry client launched September 2023

* Interest from a national US retailer with 1000+ stores

Monetisation strategy

From Don Clark, Chairman: "Our business model is to create an exponentially increasing royalty income, but with a moderately increasing operational cost."

How does Spendology achieve that?

* Spendology licences franchises around the world

* Franchises licence clients in their territory, eg travel agents, tour operators, airlines and personal finance

* Clients sell travel money to new and existing customers

* Spendology earns a royalty on every order

Additional revenues are generated through:

* A setup fee for each franchise territory

* Passing through all direct costs to the franchise

* Charging a day rate for all bespoke product development.

Use of proceeds

BUSINESS DEVELOPMENT 33%

To enable the business to pursue further franchise opportunities

SOFTWARE DEVELOPMENT 33%

To enable the business to undertake multiple local integrations and customisation

OPERATIONS 33%

To scale out the franchise support operation including on-boarding, training and tech support

Investors Perks

We are delighted to announce that Seedrs investors making investments over £1,000 with Spendology will be able to buy their travel cash from us at cost through our Travel Money Club retail brand. All you have to do is pay for your delivery, and you can exchange up to £10,000 each year.

If you exchange mainly long-haul currencies (excluding US dollars), you will typically save £750 each year. The more you invest, the longer the perk lasts. Invest over £20k and receive the benefit for life! Take a look at the infographic for further information.

We're sorry, but as a regulated activity, we can only offer the service to UK residents with a UK payment source, and the perk is non-transferable.

*Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers, and Seedrs does not take any responsibility for them.

Key Information

Outstanding Debt

The company has the following outstanding loans:

- £18,819.97 loan from a founder with no interest rate, no repayment date, and to be paid from net profits.
- £15,000.00 loan from a founder with no interest rate, no repayment date, and to be paid from net profits

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

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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

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 £1,302,450

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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