Use real gold as real money. Buy, save, spend & send real gold and other currencies, digitally with Glint
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.glintpay.com |
| Sectors | Finance & Payments Digital Mixed B2B/B2C |
| Company number | 09507932 |
| Incorporation date | 25 Mar 2015 |
Investment summary
Business highlights
- 49% growth 6 months, 79k registered, £158+ million transactions
- Launched US office and full operations, including cards, in 2019
- Principal Member of Mastercard UK + Glint it! P2P transfers
- £26.41m pre-money valuation based on issued share capital
Idea
Introduction
"Welcome to Glint where we have taken gold, one of the most trusted and proven stores of wealth and made it liquid, enabling clients to buy, save, spend and send real gold, instantly and inexpensively, using our bespoke platform, through the Glint App and Mastercard.
The US Dollar and the British Pound have devalued over 85% in the last 50 years. Over the same period, gold, which we appreciate can go down in value as well as up; one of the most proven and trusted stores of value over time, has increased by over 500%, but, until now, it hasn’t been a good medium of exchange. Imagine investing in a business that is on a mission to revolutionise payments across the world by making real gold, liquid, a safe and reliable method of payment. Thanks to Glint, with its teams in the UK, US and Japan, everyone can now have their own personal gold standard
The Glint team has built a unique global FinTech business that is a regulated (UK FCA eMoney Issuer), multi-currency saving and payments platform, which we believe is the first in the world to allow instant, electronic transactions in digitized gold, at point of sale.
Our scalable technology enables Glint clients to use their currencies (GBP, USD, EUR and GOLD), with our UK, EU and US issued Mastercards in 210 countries world-wide. Our P2P Service, Glint It!, allows clients to send and receive gold and currency between Glint accounts in over 160 countries.
Gold is security. Glint its key."
Jason Cozens, CEO
Substantial accomplishments to date
• World’s first: Save and spend gold as money in any amount, anywhere in the world that Mastercard is accepted.
• Global gold-based payments network: Gift & pay with gold as easily as sending a text or email.
• Physical gold: Buy physical gold (allocated to you), insured by Lloyds of London and held in a secure Brinks vault in Switzerland.
• Multi-currency: Access and switch between your multiple currencies including GBP, USD, EUR and GOLD using your Glint app. Currencies are stored in safeguarded and segregated accounts.
• Global Presence: Available in 200+ countries, Glint cards issued in 37 countries: US, UK & EU.
• New Products: Glint it! Gold-sharing P2P service launched in UK and Europe in 2020. Gold sharing P2P service in the US to follow in the near future.
• Emerging growth: After building its platform Glint’s user base has grown by 40% in the last four months (Oct 2020 - Feb 2021).
• Card Issuing: Mastercard Principal Member for issuing in UK and Partnered with Sutton Bank for the US.
• Funding: £20 million equity funding raised to date.
• Transactions: Over £158 million transactions.
Monetisation strategy
Glint's revenue model is very simple and currently derived from exchange and card transactions.
We charge clients a 0.5% fee on the exchange of gold or FX.
We receive an 'interchange' fee (UK/EU 0.2% & US 0.9%) when our cards are used to buy something, this fee comes from the merchant not the Client.
Finally we also charge the client £/$/€1.50 for an ATM withdrawal.
We are currently looking at Future Revenue streams which include:
- Corporate Products
- Tiered Subscriptions
- Premium Card and account products (e.g. Solid Gold card)
- Gold Savings Products e.g. Pension Wrappers, School Fees
- 3rd Party corporate and client payments
Use of proceeds
The funds raised will be reinvested to maximise revenue and organically grow the business. This will be done by increasing targeted spend on Marketing and New Markets and products (including soft launch in Japan 2021, launch of Glint it! in USA).
To meet our forecast revenue targets we will need to increase our registered customer base to 250,000 in 2021 (currently 75,000). To maximise our revenue from these new customers we will look to use part of the investment to consolidate existing functionality and develop new revenue generating products, as per the Future Revenue streams listed above.
To support this growth we will need to add key human resources in IT Development, Operations, Client Services, Marketing, Finance and Compliance to ensure that we not only support our client base, but are able to plan for further growth.
Key Information
Valuation
The pre-money valuation for Glint has been calculated on a fully diluted basis, including all existing rights to equity that may convert and dilute investors in the future. In this case, the valuation on the campaign reflects (i) issued shares (ii) options (iii) warrants, and (iv) the Future Fund Convertible which is expected to convert on close of this round (see below).
Please note that the pre-money valuation of the business when taking into account only issued share capital, is £26.41m
Future Fund Convertible
The company has the following outstanding convertible loans, which may convert to equity after this round and dilute existing shareholders:
£2,453,540 Future Fund Convertible Loan, with the following key terms:
- Interest rate: 8% non-compounding.
- Conversion trigger(s): An equity raise of at least the value of the convertible loan.
- Conversion price: 20% discount on the share price of the qualifying round
- Valuation Cap: None
- Share class: Most senior class of shares issued in the round
- Repayment date: 28 October 2023
This round is expected to trigger this convertible loan and it has been priced in to the pre-money valuation.
Existing Loans
1. The company has an outstanding loan from Stockford Limited of £2,500,000.
The loan is subject to interest of 15% per annum. Interest up to the original Repayment Date, 19 November 2020, was prepaid (ie it was deducted from the original amount of the loan which could be drawn down, while the full loan amount is repayble).
The loan has since been extended to 19 May 2021 and again to 19 May 2022. During this extension period, the interest is repayable on a monthly basis and is approximately £31,285 per month.
The proceeds of this fundraise are not intended to be used for repayment of the loan. However, investors should note that the company is still loss making and therefore proceeds may, in part, be used to make the ongoing interest payments. The loan is also secured over the assets of the business.
2. One bounceback loan of 50,000 loan at an interest rate of 2.5% per annum. The loan is to be repaid in monthly instalments from 8 June 2021 until 8 June 2023.
The funds raised from this investment round will not be used to repay this loan.
Administration
In 2019 Glint successfully emerged from administration following a hostile takeover attempt. The hostile group, purchased Glint’s only loan from the original lender and appointed administrators, using a disputed claim of technical default. With the full support of its shareholders Glint achieved a solvent exit, raising funds to repay the loan early, all creditors, and the administration costs.
Republic Co-Raise
Glint is co-raising with Seedrs US Partner, Republic, for a joint equity crowdfund. Investment on Republic is being raised via a Private Placement Memorandum (PPM) on the same terms offered to Seedrs investors. The exchange rate for these investments has been set at £1/$1.35.
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