Zvilo

Idea

Introduction

Zvilo is on its way to becoming the first digital bank in the Balkans, providing ­­seamless connectivity, low fees, and accessible credit, and later bringing its offerings to other emerging markets.

Digital banks are present in most of Western Europe; however, the Balkans have been overlooked, and we believe the region is poised to become the next major growth market in Europe. There is a huge opportunity for Zvilo to modernise the banking experience in the Balkans.

The Balkan region has a population of over 21m, of which almost 40% remain unbanked. Moreover, 41% of businesses in the region need loans, but collateral requirements are almost 200%, which means funding is less accessible for SMEs.The diaspora of Balkan people is over 6m, with more than €11b being sent to their families in the Balkans each year. Through Zvilo, SMEs and consumers can take advantage of up to 85% savings across all banking and transfer fees.

We believe in a financially inclusive future, and it's our goal to make affordable financial products & services accessible to all.

Substantial accomplishments to date

✔️ €50m debt facility signed with Fasanara Capital, turbocharging our SME lending.

✔️ The development and successful launch of Zvilo’s proprietary digital platform for our supply chain finance program.

✔️ Successful onboarding of our initial value chains. We are in the process of onboarding several more by Q1 2023.

✔️ Continued revenue generation since the launch of our SME lending product in Kosovo in December 2021 while building a quality loan book with zero losses and NPLs.

✔️ Growth in our Kosovo and London teams with the commencement of three new full-time staff members.

✔️ Development of the Zvilo app prototype showcasing key features, including consumer microloans, specialized SME loans, remittance transfers and B2B and B2C payments.

✔️ Lending (factoring) license secured from the Central Bank of Kosovo in November 2021.

✔️ Signed a Memorandum of Understanding (MoU) with Mastercard, affirming Mastercard's support towards the region and Zvilo's business model.

✔️ Aligned with United Nations Sustainability Development Goals (SDGs) and adopted Environment, Social and Environment (ESG) commitments.

Monetisation strategy

We believe that building a loan book from the very beginning is key to building a sustainable digital bank that generates revenue from day 1. As we scale our lending product in Kosovo & expand operations into other markets, we will kick-start our consumer lending and transactional banking via the Zvilo app.

What sets us apart from other digital banks is our specialised lending across these key revenue streams:

1. SME Lending: we provide short-term working capital facilities to SMEs across systemic value chains.

2. Consumer Lending: through the Zvilo app, credit-eligible consumers will be able to obtain microloans, such as Buy Now Pay Later, overdrafts & credit cards.

3. Money Transfer: through the Zvilo app, Balkan nationals can transfer funds from the UK & EEA to their families in the Balkans & vice-versa with savings of up to 85%.

4. Transactional Banking: Zvilo will receive interchange, FX and payment fees with each transactional use of the card products and payments.

Use of proceeds

A successful round of funding will enable Zvilo to grow its loan book and revenue, help prepare its entry into North Macedonia and Albania, invest in technology and expand its product offering. The primary use of funds will be for:

— Further development of Zvilo’s proprietary SME platform and its Zvilo app

— Launching Zvilo in North Macedonia and Albania*

— Scaling Zvilo’s SME loan book in Kosovo, North Macedonia and Albania

— Expansion of Zvilo product offering

— Accommodating the growth of the Zvilo team and the ongoing costs associated with human resources, operations and strategic planning

— Marketing activities related to Zvilo products and the investor community

*Zvilo is not yet regulated in these jurisdictions but has begun the preliminary steps.