Close

Jump to:

  • Navigation
  • Content
  • Footer
Zvilo hero image

Zvilo

Follow

Zvilo aims to become the first major challenger bank in the Balkans & for Balkan people living in the EEA

330%
 - 
Funded 14 Jun 2021
£200,001 target
£661,104 from 466 investors
More
Less

Business overview

Location London, United Kingdom
Social media
Website www.zvilo.com
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 11342079
Incorporation date 2 May 2018
More
Less

Investment summary

Type Equity
Valuation (pre-money) £8.5M
Equity offered 7.23%
Share price £0.96
Tax relief N/A
More
Less

Business highlights

  • Lending focused model, targeting EU's next major growth market
  • Huge market: ~40% unbanked | ~€14bn remittances p.a | poor UX
  • Access to 800+ SMEs potential business customers for pilot
  • Access to 45,000+ potential personal banking customers for pilot
More
Less

Key features

  • Secondary Market
  • Nominee investment min. £10.56 +
  • Direct investment min. £20,000.00 +
  • Idea
  • Investor Perks
  • Team
  • Updates
  • Investors 466
  • Discussion
  • Documents

Idea

Introduction

In the EU, the top 50 fintech companies are collectively valued at over $92bn. Yet, there are signs that the market is heading towards maturity.

Challenger banks are present in most of Western Europe. However, the Balkans have been overlooked and we believe are poised to become the next major growth market in Europe.

With a population of >21m and rapid growth in card and digital payments, we believe there is an opportunity for Zvilo to become the first major challenger bank in this unpenetrated region.

According to Cambridge University, banks in the Balkans tend to only compete on margin and interest and not on user experience, forcing customers to accept cumbersome banking processes. A great opportunity also exists with the unbanked, as demonstrated by low account ownership levels in the Balkans vs the EEA (61.3% and 95.3%).

Zvilo plans to disrupt the outdated Balkan banking sector, offering digital financial solutions based on cost-saving, convenience, connectivity and accessibility.

Substantial accomplishments to date

● Established a letter of intent for a pilot program, which would enable us to:

- Offer business lending (via SCF) to a network of 200+ suppliers and 600+ SME buyers

- Promote our lending and digital personal banking offering to 45,000+ customers

- Disburse €15m across a diversified pool of SME’s and consumers

● Mastercard (“MC”) partnership – having selected MC as the card scheme and built a strong working relationship, MC are expressing interest in supporting us in implementation and launch

● Initiated licensing application with the Central Bank of Kosovo

● After 9+ months of discussions with leading technology enablers, we conducted a comprehensive due diligence and financial modelling of their propositions – includes Railbanks, Modulr, Transact Payments, Paymentology, i2C, TransferWise, Currencycloud and other market leaders. This was essential for mapping a clear execution strategy after our first public fundraise.

● Conducted in-depth market research, including the development of a 5-year strategic plan and an understanding of the regulatory requirements for key target countries/markets.

● Established an experienced and diverse management & advisory team

Monetisation strategy

Under the freemium model, we aim to generate a large portion of revenue through interest on overdraft and microloans issued on the back of a debit card. However, what sets us apart from other challenger banks is:

●Business lending (post-licensing) - we will lend to corporate retailers & their SME suppliers, providing short-term working capital facilities (“Supply Chain Finance” or “SCF”). This not only gives us a direct path to revenue generation, but the relationship we build with retailers allows us to promote our banking service to their customers. To that end, we can lower our customer acquisition costs.

●Money transfer service (powered by P2P tech) is est. to offer >85% savings in transaction fees. Since the Balkans have some of the highest inbound remittance volumes in Europe (~€14bn p.a in 2019), we expect this to be an integral solution for incumbent bank users.

●Lending from day 1 (post-licensing) - this enables us to combine growth and profitability in the early stages of business.

Use of proceeds

Post-funding, we will:

● Formalise our application for SCF licensing in Kosovo

● Execute the strategic partnership agreement with our Kosovar partner retailer, enabling us to launch business lending services

● Preparations for a second round of fundraising

The second round of fundraising will be used for E-money licensing while we ramp up card launch preparations. Between the launch of our business lending and E-money license, we also aim to obtain our Mastercard license for the Kosovo market. During this time, we also plan to formalise our partnerships with:

● A Banking as a Service (“BaaS”) provider in the UK and EU.

● Other technology partners for issuing cards and current accounts to Kosovars and other Balkan communities who live and work in the UK and EEA.

Investor Perks

Open an account to get access to the team members of Zvilo

Sign up

Already have an account? Log in

To comply with financial regulations, we can only show full campaign details to registered users.

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

Share on:

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 Zvilo has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 27 April 2021 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 £8,472,371

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.

Find out more

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.

Find out more

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.

Find out more

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.

Warning

You are following a link outside of europe.republic.com.

None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

ContinueCancel