Mobile Phone Transactional services
Market Sector | Mobile Phone Transactional services |
Product Development | Fully Developed & Tested |
Business Stage | Pre Revenue/ Early - customers trialling product |
Investment | Up to £60,000 |
EIS Tax Relief | Yes |
Valuation | £1.34m |
Location | West Midlands/London base |
The company have developed their Mobile Commerce proposition that uniquely, unlike any other method of payment by mobile, ensures the merchant receives 100% of the transaction value in a secure, encrypted environment.
The suite of managed services with its transactional payment proposition, enables an easy entry to M-Commerce by merchants whose product offer lends itself to this application and who are also seeking a market edge by using mobile as the ‘fourth screen' after film, TV and PC. With over 3.5 billion phones worldwide and smartphone market growth expected at 53% pa Mobile media will continue to become a prime focus of commercial activity that the technology developed will be well positioned to exploit.
The product has been rigorously tested for over a year and in the latter half of 2008 the B2B proposition was launched as a ‘Managed Service' to targeted partners who already provided transactional on-line services into key sectors, and were seen as primary route to market. Deals have now been secured with key market leaders who between them have over 40k merchant clients, with the first going live in March 2009 and more to follow over the next few months, all from Industry sectors with existing propositions relevant to mobile - Travel, Ticketing, Retail and Gaming that have a combined online world wide market revenue value per annum of more than $1Trillion & growing (Forrester 2007)
Revenue is generated from the initial setup and build of the service, a monthly subscription and from recurring income through a fixed fee per transaction. For B2C, revenue is created from commissions paid by a supplier for each successful sale.At this stage the company feel they have a technical and market advantage over the competition that will remain sustainable for some time as they establish sales traction and market penetration much of this attributed to the strength of the management team who can demonstrate successful track records and performance in growing businesses to significant revenue and profit levels both UK and overseas.
The business has been funded to date by the Directors own funds, private investors and a regional co-investment fund and with revenues now expected to be generated by the end of this 2nd Quarter the company seek £60k funding at a valuation of £1.34m taking them through to Q3 when on-going discussions with a major VC is targeted to inject equity investment of £1m to provide the funding needed to fully exploit the potential.
The forecasts below anticipate implementing an exit strategy in 2012.
Trading Results | 2009 | 2010 | 2011 | 2012 |
Revenue | 214,609 | 1,982,796 | 5,144,978 | 10,352,001 |
Gross Margin | 97,823 | 1,564,147 | 4,291,433 | 9,204,629 |
Overheads | 518,988 | 933,668 | 1,306,720 | 1,855,599 |
Profit/(Loss) | (421164) | 630,478 | 2,984,713 | 7,349,173 |
End of Year Cash | 604,580 | 536,258 | 2,113,480 | 7,040,173 |