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Fintech currency exchange - pre-administration

Reference
D7998
Turnover
£0.5m to £1m
Sector(s)
Business services, Miscellaneous, Service industries, Technology
Region(s)
UK Wide, Outside UK
Added
24 August 2021
Offers required by
October 22, 2021 - 1:00pm

Business description

Established in 2010 and launched in 2015, this Company is a travel money business offering customers cost effective travel money via a multi-currency prepaid chip and pin and contactless   enabled Mastercard offering excellent exchange rates and transparent pricing and can be used worldwide in any currency.

The core product is the pre-paid currency card which links to a digital currency account that can be managed through the Company’s website or mobile app. A simple registration process includes AML & KYC. Once registered, a user can load their account with funds through a linked debit card, bank transfer or Apple Pay.

As a result of its business operation, the Company won various British Banking & other Awards between 2018 and 2020.

The business has a proven revenue model with revenues generated  through commissions paid on currency exchange volumes, ATM fees for withdrawals below £200 and interchange  fees derived from point-of-sale transactions with local merchants.

The Company has developed its own  API which allows integration directly into the booking flow of a range of third party online platforms such as travel agents, car rental companies. The API also allows for integration with technology platforms which specialise in providing travel booking solutions to online travel companies. The Company securely retains details on it Users’ activity and KPIs, within its database, enabling business management tools to analyse performance, its compliance team to review users’ behaviour and its support  team to deal with queries.

By the end of 2019 registered users surpassed 450,000 and total annual volumes transacted exceeded £80million (£277million since launch in 2015) achieving revenues of £1.77m.

Unfortunately, the Covid-19 pandemic caused most foreign travel to cease immediately causing the Company’s volumes and revenues to fall by 90% resulting in a reduction in staff numbers from 40+ to 15. Originally based in London, as a result of the necessary restructuring the operation is now no longer office based with all employees working remotely.

With such a dramatic fall in volumes, the previous forecasts were no longer achievable but with the return of international travel the outlook for the business once again looks much more positive, although additional funding is still needed to get to break even and profitability. Notwithstanding this, the prolonged effects of the Covid-19 pandemic that led to a lack of foreign travel throughout most of the previous 18 months and the fall in volumes this had precipitated, has created a liquidity issue for the ongoing business. As a consequence, Williams & Partners Ltd has been engaged to find a buyer for the business and goodwill as a going concern out of Administration or failing that, on a break-up basis.

If you are interested to know more about the above opportunity, we are able to offer a short period to undertake a limited amount of due diligence. However, please note that offers must be received by no later than 12:00pm on Friday 22nd October 2021 with a sale to be concluded by Wednesday 27th October 2021. Only parties that are able to work within a short time frame should respond. Williams & Partners Ltd reserve the right to close the bidding early or extend the deadline, without liability. 

Preference will be given to companies or investors with experience within the fin tech arena as we would consider that knowledge of the industry is essential to the future success of the business. 

Due to the confidential nature of this sale, interested parties will be invited to sign a non-disclosure agreement before further details can be released. 

If you are interested in finding out more about the above opportunity, please contact us at your earliest opportunity.

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