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TranSat Africa

TranSat Africa

Transforming payments in the next big emerging market -- Africa

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Deal Type

Equity

Funding Goal

$2,000,000

Current Reservations

$885,000

Minimum Reservation

$20,000

Deal Stage

Bridge to Series A

Pre-money Valuation

$11,250,000

Open Date

10/02/2019

Closing Date

12/31/2019

Elevator Pitch

TranSat Africa (Transactions via Satellite) provides the connectivity and interoperability to be first-to-market with a mobile and cloud-based payments network specifically developed for Africa.

Company Overview

Africa’s $1.4 Trillion merchant payments market is rapidly moving from cash to mobile payments – but much of the continent lacks some or all of the critical infrastructure components for a functioning payments network.

TranSat Africa is an integrated connectivity, payments and fintech network specifically developed to provide:

  • A secure, reliable satellite network that seamlessly links banks, merchants and payment providers to their mobile phone customers;
  • Payments interoperability: we enable merchants to instantly accept any type of digital payments including (importantly in Africa) Mobile Money;
  • Mobile interoperability: our technology works with any mobile phone -- from inexpensive ‘feature’ phones (60% of the African market) to 5G smartphones;
  • Tamperproof transactions: we create a unique online ID for each customer; encrypt all data; and routes all transactions through a secure cloud-based network.

Our satellite network uniquely addresses the African banking and payments markets connectivity requirements including:

  • New-to-market satellite terminal that is the size of an iPad and can be solar-powered;
  • All-weather and all-terrain network provides 99.99% uptime (the highest in Africa).

Our interoperable payments network securely routes the transaction for the most efficient and cost-effective processing:

  • Interoperability enabled MasterCard / Visa to become the largest payment networks (with a combined market cap of $700+ Billion).

Our fintech solutions provide:

  • Patented multifactor authentication (including MasterCard certification as an advanced authentication solution);
  • Proprietary process for converting telco Mobile Money to an interoperable virtual pre-paid debit card.

Simple, scalable business model:

  • We earn a per-transaction fee on every payment routed through our network.

Accomplished management team:

  • TranSat was founded by experience digital bankers and cybersecurity experts along with an on-the-ground in Africa technology implementation team.

Strategic Partnerships:

  • ViaSat is a San Diego-based, publicly, traded satellite communications company (NSDQ:VSAT). TranSat Africa is commercializing and adapting ViaSat’s L-Band Satellite Network (developed for the US Military) to banking and payments in Africa.
  • Unlimited is a Kinshasa-based technology solutions provider with over 20 years experience implementing satellite and mobile communications solutions.
  • Arch Retail Systems is one of the largest providers of point-of-sale (POS) payment and accounting systems to merchants in Africa.Arch has over 1,400 customers including the 2 largest retailers in Africa:
    • Shoprite (largest supermarket chain in Africa with 2,700+ stores)
    • Walmart Africa (MassMart with 425 stores in12 African countries).

Mobile Money:

Sub-Saharan Africa is a Mobile Money market with 400 million accounts (half of all adults) 87 million active monthly users, and 1.7 Billion transactions in 2018 worth $27 Billion.

  • 90% of Mobile Money payments are Person-to-Person (P2P) and 10% are merchant payments – mostly for utilities and ‘air time top up’ (purchase of cell phone minutes).
  • Mobile Money is generally not used at merchant point-of-sale (POS) because the connectivity is too slow or uncertain, and the process is too cumbersome – problems addressed by TranSat QuickPay.

Merchant Solutions:

TranSat Africa is digitizing the $1.4 Trillion retail payments market by providing merchants with an end-to-end solution that is simple to install and eliminates the complexities of:

  • Instant connectivity to both in-store Mobile Money customers and back-end payments processors and settlement banks;
  • Payments interoperability enabling seamless acceptance of any digital payment including debit and credit cards, and Mobile Money;
  • Encryption and compliance with payments industry security protocols;
  • Integration into back-end accounting and inventory control systems.

The Opportunity:

  • Our immediate opportunity is to make Mobile Money payments at merchant POS more convenient than using cash.
  • Get this right, and the numbers speak for themselves – half of all adults already have a Mobile Money account and merchant payments today are 90% cash.
  • If we capture 3% of the market, we will do $42 Billion in transactions and generate $1.05 Billion in fees.

Competition:

  • KPMG views the competitive landscape in Africa as:

“FinTech companies entering the Africana market face some complexity but virtually no market competition, and more than a billion people can be reached.” – KPMG 2016 Africa Report, Payment Developments in Africa

Sustainable Competitive Advantage:

  • Payments networks are only as useful and reliable as the connectivity.
  • Once a new connectivity and payments network is adopted by banks, merchants and their mobile customers, it will become difficult to dislodge.

Traction

  • MILESTONES FOR Q4 2019

    October, 2019
  • CENTRAL BANK CERTIFICATION: Will be the de facto standard for routing banking and payments transactions in the DRC.

    October, 2019
  • MILESTONES FOR Q1 2020

    November, 2019
  • BANKING: Install TranSat Africa satellite terminals at Ecobank (the largest pan-African banks with 10+ million customers in 36 countries.)

    October, 2019
  • MERCHANTS: Install satellite terminals at Arch Retail System’s merchant customers incl 2 largest retailers in Africa: Shoprite & Walmart.

    September, 2019

Key Customers & Partners

MasterCard ViaSat

Previous Funding

  • $3,000,000 Equity
  • Raise Source: Self
  • September 2016

Risks & Disclosures

Please review Risks and Disclosures in the Confidential Documents section.

Documents

Confidential

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