Zumo

Idea

Introduction

Zumo is the wallet and payments platform that makes your money and cryptocurrency work seamlessly and safely together.

We're on a mission to bring the benefits of decentralisation and cryptocurrencies to people everywhere. Our blockchain powered smart wallet is a safe and simple way to trade, store, transfer and spend cryptocurrencies.

The Zumo ecosystem is made up of three core products:

• Zumo App is our consumer product aimed initially at the UK market, incorporating both crypto and traditional money in one powerful app.

• ZumoKit is our partner solution for banks, payments companies and developers to build into their products.

• ZumoPay is our B2B product which enables businesses to accept cryptocurrency payments.

Our vision is to massively improve global financial inclusion regardless of gender, race or geographic location. As we enter the third era of the Internet, we believe transformational change is required, and we want to be part of that change.

Substantial accomplishments to date

Over the past two years we’ve hit a number of key milestones.

We raised £3m in equity funding across 3 investment rounds.

We used that funding to grow our development team from 4 to 12 and our sales, marketing and compliance team to 10, split between Edinburgh, London and Ljubljana.

Zumo is made up of a proprietary codebase that is continually improved and at the bleeding edge of blockchain technology.

Part of that codebase is our Patent Pending token management system that means Zumo is truly decentralised in how our users access and manage their digital assets.

We have received just under £300k of R&D tax credits to date.

We have successfully planned and deployed several key development releases.

We moved from testnet to mainnet for Bitcoin and Ether in March 2020.

We launched the first version of our exchange service in May 2020.

We launched our GBP wallet in July 2020 enabling exchange between crypto and traditional money in the app.

Our next major release will be the launch of our convertible debit card in September.

Zumo soft launched on the App and Play stores in November 2019 and we’ve grown to nearly 1000 users in that time. We’ve collected insights and feedback throughout and are using that data to deliver a product that our users love.

We were part of the first Wayra AI & Blockchain accelerator cohort in Edinburgh in 2018.

We are at the final stage of approval from the FCA for our E Money Institution Licence.

Monetisation strategy

Our main source of revenue will be our in-app currency exchange. We charge users 0.5% for any kind of currency exchange performed, whether it’s crypto-crypto or crypto-fiat. As time goes on, we plan on adding more and more currencies.

Once we launch our convertible debit card in September there will be a £2 monthly subscription. This card will allow users to spend their crypto anywhere a debit card is accepted.

Two premium subscription options will be available in future too. One will provide insurance on cryptocurrency holdings, the other will be a subscription for location-locking of the wallet.

We also have our B2B offering, ZumoKit and ZumoPay. ZumoKit will be licensed to developers with a cost per install model and licensed to enterprise with a revenue share model on exchanges made via the platform.

ZumoPay is our payments platform, provided to clients looking to accept cryptocurrency payments on their site or in their store. We plan to charge 1% to merchants on every transaction made via ZumoPay.

Use of proceeds

People – 39%
• Salaries – 32%.
• 3rd party contractors – 6%.
• PAYE deferral repayment – 1%.

Product – 39%
• Development – 25%.
• Cryptocurrency exchange – 4%.
• Know your customer AML (KYC) – 4%.
• Know your transactions AML (KYT) – 1%.
• Hosting and software - 1%.
• Banking provider – 2%.
• Visa – 1%.
• CRM – <1%.
• Expected premium security costs – <1%.

Marketing – 17%
• Digital marketing – 10%.
• Traditional marketing – 3%.
• Influencer marketing – 2%.
• Consulting – 1%.
• Other marketing – 1%.

Admin – 5%.

Legal – 3%.

Rent – 1%.

Employee expenses – <1%.

Loan repayment – <1%.