dozens

Idea

Introduction

Does your bank help you stay out of the red? Or does it profit when you're in it?

Banks’ inability to use their customer’s data to help them save and dependence on credit products for profitability mean consumers are rewarded more for spending than for saving. Dozens was created to make saving easier and more rewarding for all, and is founded on a fundamentally new business model; we only make money when our customers do.

With a full featured app at launch, Dozens has created a new home for your money. It brings together a current account, a smart budgeting tool, and a savings and investment manager – all in one app.

Dozens is a trading name of Project Imagine, which has previously raised $8m in funding, received two licenses from the FCA and is live on app stores. £2.5m of this round has already been raised from existing shareholders, including STIFG.

Together with a 300-strong community across the UK, its unusually diverse team (at this stage dozens is 75%+ women and 75%+ non-financial background) are looking to define the second generation of challenger banks.

Want to see more of the dozens vision? Check out our pre-registration page: dozens.seedrs.com. We care a lot about transparency and have always aimed to publicly answer all questions from our community. Our official investor document for our public fundraise launch will go live on Monday. Until then watch out for updates with links to further information!

Note to investors: the company has different share classes in issue, along with an outstanding convertible loan. Please see more under 'Important information' below.

Intended impact

Fintech is a crowded market. However, with low average balances, challenger banks are finding wallet share and profitability remain elusive. On the other hand, P2P lending platforms and Robos are struggling to break into the mass market.

Dozens aims to fill this gap by offering an integrated current and investment account, that takes the UX level set by our competitors as hygiene, and instead focuses on balance sheet innovation, providing access to high return products.

Dozens looks to make saving easier and more rewarding.

For the 'Spender to Saver', there are unique in-app tools to improve financial capability, such as fun saving rules, ‘happiness ratings’, and cash rewards for good financial behaviour.

For the ‘Saver to Investor’, Dozens offers 5% fixed interest bonds and thematic investments.

Going beyond the app, Dozens aims to bring better financial products to everyone; people aged 45-64 hold 44% of the UK’s wealth, yet digital capability for the same group drops below 50%.

Substantial accomplishments to date

• Currently, less than 2 months post app launch, dozens has over 5,000 downloads and 3,500+ KYC completed account holders (72% conversion rate from phone verification).

• Issued ca £91,000 of bonds in February 2019.

• Received a full eMoney license allowing us to take in deposits, and a European Mifid Discretionary Investment license, allowing us to offer proprietary financial products.

• Created a proprietary retail bond listed on NEX stock exchange - the Dozens 5% pa fixed-interest FSCS protected listed bond with monthly interest and zero lock-in.

• Designed and built 600+-screen native iOS and Android apps in less than six months, allowing the user to access their current account, savings and investments all in one place.

• Built the app on top of our own balance and orchestration layer, integrating with over 20 partners within six months of build, and positioning us to extend our product range without execution issues in the future.

• Engaged a 300 strong cross-segment community from all over the UK who helped co-create the app.

Monetisation strategy

At Dozens, instead of relying on customer debt, or charging for overdrafts or platform fees even when an investment goes down, we have a spread of investment products and make a small percentage profit on investments as well as FX, the overnight rate for funds held in savings and card transactions from merchants.

Target average revenue per user is c£50 pa pre-banking license and c. £75 pa with banking license. Our business model is based on revenues from the savings and investment shelf as well as FX from the current accounts. A banking license will give us the potential to further open up monetisation of cash deposits.

Investment, licenses, and tech are all owned by Project Imagine, allowing us to explore more differentiated brands on the same stack in due course (eg a less simple, more configurable wealth segment offering) as well as B2B offerings.

Use of proceeds

Project Imagine will look to use this investment round to fund growth initiatives for Dozens, new product (financial + digital) development and the first phase of the banking license application.

Our product backlog includes:

• add-on propositions to reach a wider audience: eg business banking, child accounts, and a new banking distribution model (focused on the digitally less literate), to address the target segment not looking for an online-only banking solution.

• Dozens' financial product backlog: eg treasuries / emerging market bonds.

• Dozens' digital product backlog: joint accounts and offers platform

Investor perks

Investor card and preferred access to bonds perks are only available to Dozens customers (currently available to 18+ UK residents). Dozens will issue £250,000 - £500,000 of bonds depending on demand with preferred access for our investors through Seedrs. £250,000 - £500,000 will be issued in March, and £25,000 - £50,000 will be issued in April, as the campaign ends by the end of April. Access to bonds for Seedrs investors will be offered according to amount bid (preference given to lower amounts) and time entered (first come first serve).

Important information

The company has an outstanding convertible loan for US $3m with an interest rate of 10% pa. Funds raised through Seedrs in this campaign will not be used to repay this loan. Note that the loan may be converted at the discretion of the management team, or on a future equity raise, or may be repaid without converting the shares. The loan may be converted at either: (a) the share price of a fundraising round where the total amount raised is at least $5m, or (b) at the discretion of the company using a pre-money valuation of $30m. The conversion of the loan will dilute shareholders, including those investing during this funding round.

An investment of £1.25m is being made into Dozens by Dashdevs, the business’ development house in Ukraine. This investment takes the form of conversion of invoices (for development work) into equity on the same terms as other investors in this round.

Please note that some early shareholders in the company hold a class of share that grants them 1x non-participating preference rights. This means that in the event of a return of funds the preference shareholders will receive the greater of £3.4m (their “Preference Amount”) and their proportionate (pro-rata) share of any proceeds. If the preference shareholders receive their Preference Amount this will be received before ordinary shareholders receive any returns, after which all ordinary shareholders will receive returns on a pro-rata basis.