Samson Mutisya
CEO
P.O Box 30333-00100, Nairobi Kenya, ICEA Building, 4th
Floor, Kenyatta Avenue
samson@tracopay.com
+254 ...
WHO WE ARE
Tracopay provides financial institutions with
proprietary mobile payment technology to enable
their clients to ...
MARKET OPPORTUNITY
•

Mobile users in emerging markets are already using their mobile phones
to make person-to-person mone...
TRACOPAY’S SOLUTION
•

Tracopay’s mobile micropayment solution is easy-to-use and fast–It
does not involve numerous and cu...
SALES AND MARKETING
• Tracopay’s mobile payment will be channeled through
banks thus leveraging on their existing customer...
COMPETITION
We will enable banks to out-compete Mobile Network Operators
(MNOs) and to dominate the mobile payments market...
BUSINESS MODEL
•

Tracopay has a diversified income stream: i) Micropayments-1% of the
transaction amount charged to consu...
FORECAST-KENYA
Year 1

Year 2

Year 3

Year 4

Year 5

# of Customers

2,283,463

7,449,942

8,269,437

8,449,777

8,634,0...
FORECAST-GLOBAL
Year 1

Year 2

Year 3

Year 4

Year 5

# of Customers

2,283,463

7,449,942

Sales (USD M)

1.89

27.04

...
THE TEAM
•

Samson Mutisya- Chief Executive Officer
Samson has a financial background and has worked as a money market dea...
STATUS AND MILESTONES
•

We have created a computer simulation which simulates all aspects of the
payment solution. This p...
Upcoming SlideShare
Loading in...5
×

Pitch Deck-Tracopay

432

Published on

A short description about Tracopay meant for seed investors.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
432
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • We have created a detailed and comprehensive financial model that takes into consideration population, economic growth, individual incomes, inflation and Tracopay’s business parameters. The key assumptions of our model are:To estimate average monthly incomes we use GDP per capita as a proxy.Consumers will gradually increase the proportion of their income that they spend through our payment solution to 50% over a period of 3 years.Reach our peak market share which is 31% of individuals between the age of 15-64 (~1.58 billion customers) after seven years of operation.In our model we make revenue projections for micro-payments and peer-to-peer funds transfer services for our Kenyan operations. For international markets, we make revenue projections for only micro-payments. These are the payment services which we could have a strong basis on which to make projections. It would have been difficult to make revenue projections for international remittances, bulk payments, online payments and bill payments.Globally, our model predicts the everyday micro-payment market to be worth USD 41.6 trillion dollars in 2014. This market will grow at 7% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 20% which is the global average.For Kenya, the everyday micro-payment market will be worth KES 1.81 trillion (USD 20.85 billion) in 2014 and it will grow by 4% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 4% which was the household savings for the year 2012.
  • We have created a detailed and comprehensive financial model that takes into consideration population, economic growth, individual incomes, inflation and Tracopay’s business parameters. The key assumptions of our model are:To estimate average monthly incomes we use GDP per capita as a proxy.Consumers will gradually increase the proportion of their income that they spend through our payment solution to 50% over a period of 3 years.Reach our peak market share which is 31% of individuals between the age of 15-64 (~1.58 billion customers) after seven years of operation.In our model we make revenue projections for micro-payments and peer-to-peer funds transfer services for our Kenyan operations. For international markets, we make revenue projections for only micro-payments. These are the payment services which we could have a strong basis on which to make projections. It would have been difficult to make revenue projections for international remittances, bulk payments, online payments and bill payments.Globally, our model predicts the everyday micro-payment market to be worth USD 41.6 trillion dollars in 2014. This market will grow at 7% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 20% which is the global average.For Kenya, the everyday micro-payment market will be worth KES 1.81 trillion (USD 20.85 billion) in 2014 and it will grow by 4% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 4% which was the household savings for the year 2012.
  • Pitch Deck-Tracopay

    1. 1. Samson Mutisya CEO P.O Box 30333-00100, Nairobi Kenya, ICEA Building, 4th Floor, Kenyatta Avenue samson@tracopay.com +254 722 80 33 84 www.tracopay.com
    2. 2. WHO WE ARE Tracopay provides financial institutions with proprietary mobile payment technology to enable their clients to securely make everyday micropayments in a way that is faster and more convenient than using cash
    3. 3. MARKET OPPORTUNITY • Mobile users in emerging markets are already using their mobile phones to make person-to-person money transfers. • However, the mobile payment solutions in existence are cumbersome and time consuming when used to make merchant payments (only 0.6% of the value transacted through mobile payment platforms in emerging markets in 2012 was attributed to merchant payments). • What if we enabled these users to securely make merchant payments with ease, speed and convenience? We will be able to monetize the over 90% of everyday micropayments done with cash.
    4. 4. TRACOPAY’S SOLUTION • Tracopay’s mobile micropayment solution is easy-to-use and fast–It does not involve numerous and cumbersome steps and keying in of ‘till numbers’. Confirmation of transactions is instantaneous. • The solution can inexpensively and conveniently be used to make payments in both formal and informal business settings. • Users of the solution will have a ready and convenient low-cost access to funds like in the use of debit cards. • The solution does not tie users to a single network—A user can conveniently and inexpensively make cross network mobile money transactions. • Users can make payments for goods and services even if the mobile network is down or experiencing delays. • Users with feature or smart phones can use the mobile payment solution (everyone can use it).
    5. 5. SALES AND MARKETING • Tracopay’s mobile payment will be channeled through banks thus leveraging on their existing customer base and infrastructure/resources to distribute and advertise the solution. • Most users in emerging markets are familiar with personto-person transfers thus we will exploit this familiarity as an anchor to introduce consumers to Tracopay’s solution. • We will position ourselves as a low cost payments solution provider that enables users to conveniently and intuitively make all and any payment(s). • Tracopay will penetrate the market easily and quickly since there are no adoption costs associated with the mobile payment solution
    6. 6. COMPETITION We will enable banks to out-compete Mobile Network Operators (MNOs) and to dominate the mobile payments market, since:  We facilitate everyday micropayments with ease and speed unlike MNO micropayment services which are cumbersome and time consuming.  We offer all payment services offered by MNOs but at a lower cost since our revenue base is larger.  Our micropayment solution is able to penetrate market segments that MNO micropayment services cannot i.e. public sector transportation, street merchandise vendors and other small scale informal businesses.  There is no need for mobile agents thus users do not need to spend time to make the occasional trips to agent outlets or incur costs to cash-out.  Tracopay provides banks with the tools to compete with MNOs. Banks will earn 40% of the transaction revenue generated in Tracopay’s payment ecosystem—A revenue stream banks will be ready to defend.
    7. 7. BUSINESS MODEL • Tracopay has a diversified income stream: i) Micropayments-1% of the transaction amount charged to consumers and 1% charged to merchants ii) Fund remittances-simple graduating scale iii) Bill Payment-flat fee iv) Online Payment-flat processing fee. • The main revenue stream for Tracopay will be from licensing its proprietary technology to financial institutions around the world. Tracopay expects to earn a minimum of 5% of the revenue its licensees make from the payment innovation. • Tracopay will operate in Kenya for one to two years. It will then license its proprietary technology to banks in emerging markets—Nigeria, South Africa, Brazil, Mexico, India and China. To penetrate developed markets, it will consider partnering with Visa or MasterCard.
    8. 8. FORECAST-KENYA Year 1 Year 2 Year 3 Year 4 Year 5 # of Customers 2,283,463 7,449,942 8,269,437 8,449,777 8,634,050 Sales (USD M) 1.89 27.04 78.59 110.67 131.34 Expenses (USD M) 14.73 29.25 58.32 76.72 88.88 EBITDA (USD M) (12.84) (2.21) 20.27 33.95 42.46
    9. 9. FORECAST-GLOBAL Year 1 Year 2 Year 3 Year 4 Year 5 # of Customers 2,283,463 7,449,942 Sales (USD M) 1.89 27.04 194.60 2,223.34 5,925.57 Expenses (USD M) 14.73 29.25 58.32 76.72 1,955.11 EBITDA (USD M) (12.84) (2.21) 136.28 2,146.63 3,970.45 444,559,516 1,202,768,544 1,512,652,783
    10. 10. THE TEAM • Samson Mutisya- Chief Executive Officer Samson has a financial background and has worked as a money market dealer, equity analyst and also as a micro-finance rating analyst. He has a bachelors in International Business Administration (magna cum laude), finance concentration. Currently, he is pursuing an MBA finance. • Rodney Ochola-Chief Technology Officer Rodney is a co-founder of Sicreso, a firm that offers software consultancy services to SMEs. He has a deep understanding of programming, circuit design, machine networking and penetration testing. Rodney has a background in Electronics and Computer Engineering and is currently pursuing a second degree in Computer Science. • Robert Muchiri-Chief Strategy Officer Robert is also a co-founder of Sicreso. As a self taught trader, he has traded financial derivatives for over six years. Robert has a bachelors in International Business Administration (cum laude distinction), marketing concentration.
    11. 11. STATUS AND MILESTONES • We have created a computer simulation which simulates all aspects of the payment solution. This proves the solution is feasible. • An expert on payment systems from Ehrlich & Fenster (one of the top patent firms in the world) has evaluated our solution and recommended an application for seven patents. • We have had constructive discussions with Kenya Commercial Bank and they are awaiting a demo of the solution to make a final decision on being Tracopay’s developmental partners. • Held preliminary talks with IBM, they are interested in a partnership to create the payment solution. We will engage them once the provisional patents are secured. • Next milestones: 1) Finalize on raising seed funding. 2) Secure provisional patents. 3) Develop prototype payment solution. 4) Get service endorsements from banks. 5) Secure Series A funding. 6) Go commercial.
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×