A stock financing app

for micro-entrepreneurs

www.sevio.io
INVESTOR DECK 23.04.24 - CONFIDENTIAL INFORMATION
Context MSMEs in developing
countries
Micro, Small and Medium Enterprises (MSMEs) play a major role in
job creation and economic development.

Access to finance is a key constraint to SME growth, 2nd most cited

obstacle

5.2$ The International Finance Corporation (IFC) estimates that

65 million MSMEs in developing countries, have an unmet
trillion financing need of $5.2 trillion every year

Source: https://www.worldbank.org/en/topic/smefinance

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WHICH PROBLEM CAN WE SOLVE

Small enterprises MSME finance is hard

are stuck for formal institutions
Can’t grow their business to full potential: Too expensive to provide small loans:

No 30-day invoicing High KYC and appraisal cost

Orders based on available cash instead of market High cost for collection
demand
Cashflow constrains throughout the value chain, cause High risk to provide credit to MSMEs
inefficiencies for both Seller and Buyer
Informal business
No access to affordable finance: They have no collateral
They don’t hold records
They have no collateral
High interest rates on alternative loans
Tedious processes to get a loan

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 Solution

INVESTOR DECK 23.04.24 - CONFIDENTIAL INFORMATION

Market Solution
SEVI: a stock financing app that reduces the transaction costs, via fully
automated authentication, KYC, credit scoring and payment collection.

SEVI offers the following services to these informal retailers

Access to stock finance 5000-0.5 million KES (USD 30-3000)

Cheapest fees in the market 1.2 - 2.2% per week
Indebtedness prevention credit risk scoring and payment plan offerings
Time-saving instant mobile ordering (and collection/delivery)
Improved trust with sellers
Automated mobile payment collection based on agreed payment plan
On-selling credit feature for B2B customers
A management dashboard to monitor sales and credit performance.

“The credit management system of Sevi is great to measure buyers’

ability to pay. We have increased our sales due to extension of credit
services through Sevi” - Kim Ndirangu Gathuku, CFO Philmed

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Tripartite Model (e.g. retail,
wholesaler)

Buyer
Financial Institution
Tripartite agreement

Money is disbursed directly Manufacturer

to the Seller
Payment from Buyer Ordering &
Deposit Delivery
Buyer credit activated on Installments
delivery
Distributor

IT platform for multiple

Credit Funds
Wholesale / Sub D
On all levels of the value Credit Fund Seller
chain (e.g. manufacturer,
distributor)
Payment to Seller
On delivery

Retailer

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 How it works

INVESTOR DECK 23.04.24 - CONFIDENTIAL INFORMATION

Step 1: Onboarding *

Create profile by entering

Phone number
Photo
Scan of ID
Set PIN

Automate KYC

* All steps can be done by the Buyer or when the Buyer doesn’t
have a Smartphone, by the Sales agent of the Seller on behalf of
the Buyer.

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Step 2: Order Product
Sevi offers 4 options:

1 ERP integration

2 Web shop integration

3 Sevi portal

4 In-app order creation

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Step 3: Payment Plan

Buyer selects preferred payment plan

The total fee per instalment plan is shown

transparently, no hidden fees

Any payment plan can be set in consultation

with Seller

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Step 4: Repayment

Easy repayment and reminders to never miss an

instalment due date.

Pay straight from bank or M-Pesa.

Clear overview of instalments paid and

scheduled.

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Step 5: Monitoring

Through ERP or on the Sevi portal Seller

can track e.g. orders, sales, sales per
agent, status of the credit, etc.

Daily statements by e-mail

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Step 6: Delinquency
Management
Reminders by SMS / push notification

Follow-up by Seller Gets daily email

updates on overdue Buyers

Follow-up by Sevi team

Debt collector

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 Market

INVESTOR DECK 23.04.24 - CONFIDENTIAL INFORMATION

Business Model
Processing fee per order
Fee is based on dynamic risk-based pricing
All-inclusive fee, no hidden cost

Main revenue drivers

Number of Buyers onboarded per Seller
Order value and frequency

Main cost drivers

Sales, credit and verification teams
Transaction and SMS fees

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Market Strategy

Top-down sales strategy to Manufacturer/Distributor

Brand awareness strategy to Retailers

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Market Opportunity
€331
Unmet financing need of formal
65 6.5 million MSMEs; Kenya has an
estimated 1.5 million formally registered
MSMEs for Sub-Saharan Africa

MSMEs and over 5 million informal trillion

MSMEs

€440 Unmet financing need of formal

30% These collectively generate 30% of GDP

and most of the non-agricultural million
MSMEs in Kenya. This financing gap is
even larger when informal enterprises
employment. are taken into account.

Kenyan MSMEs operate in all sectors of the

economy, with large concentrations in wholesale
and retail trade, manufacturing, and food services.
€13 Targeted cum. loan volume on Sevi
at break-even point
million

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Competition
Digital Credit Provider Banks Mobile Loans

APR low mid low high

AI Credit Scoring

Ease of Access to
business loans

Value chain trusted

based lending

Stock financing

Scale

Reach MSME2

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Competitive Advantage
SEVl's app stands out in terms of:

Scalability All back-end processes (authentication, credit

scoring, payment plan offerings and payment collection) are
automated into a seamless process;

Go-to-market strategy supply chain-based onboarding enables

scalability and improves stock flow from manufacturer to
micro-entrepreneur;

Trust based lending the trusted seller-buyer relationship

helps to overcome buyer's distrust towards digital financial
products and improves collection rates. CBK license and partners in place.

The above USP's have positioned SEVI as the fintech provider

with the lowest default rate (<1.3% at 30 days, and <0.4% at 90 days)

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Sevi’s Impact
SDG 5B Enhance the use of enabling technology to enhance the empowerment of
women

60% 60% of SEVIs users are women micro-entrepreneurs

SDG 8 Better work and Income. Financial inclusion: Access to affordable finance; a
crucial condition for further growth of MSMEs in low income countries, contributing to
economic growth and creating better income for their employees and family.

100% Up to 100% increase of revenue

33% year
33% of the micro-entrepreneurs are enabled to hire 2 employees within a

SDG 9.3 Increase access to financial services and integration in supply chain

The SEVI app is supply chain based and its automated algorithms ensure
a lowest market price, gives insight, prevents fraud and over leveraging,
improves credit scoring and increases efficiency, while reducing costs and
transport movements.

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 Current Status

INVESTOR DECK 23.04.24 - CONFIDENTIAL INFORMATION

Key Management Team
Walter aan de Wiel Bartel Verkruijssen Julius Wanyaga Joyce Gitobu
CEO CTO Country Director Kenya Key Account Manager
18+ years experience in 15+ years experience in IT 25+ years experience in 9+ years experience,
enterprise development dev. incl. two exits distribution, telco, banking including Head of Business
COO @ Enviu: co-founded 8 Founding CTO @ Dicoda Key accounts @ Coca Cola Development @ 4G
social enterprises Founding director @ Talqs GM @ Equity Bank Capital
Founding director@ iMPACT Head Of Digital Banking @
Booster FCMB Bank

Team
5 Developers (team based in the Netherlands)

45 Sales team

5 Credit appraisal team

6 Support team

and Third party sales agencies

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Key Milestones
Licensed as 1st B2B Market leader in
Winner GDC Pilot SEVI-app (co- digital credit B2B stock Raised USD 1.4
Introduction Innovation Challenge funded by Global provider by the financing in FMGC, million seed funding
SEVI-app in (Global Distributors Distributors Central Bank of pharmacy, dairy (DGGF, Truvalu and
Kenya (MVP) Collective) Collective) Kenya and LPG Emerald Ventures)

2020 2020 2021 2022 2023 2023

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First licenced B2B Digital
Credit Provider
2022 New digital credit regulation was launched in Kenya
in March 2022

Sevi obtained its Digital Credit Provider license from Central

Bank of Kenya (CBK)

10 Out of 288 applications initially only 10 got licensed.*

Sevi obtained its Data Controller Certificate from the Office of

the Data Protection Commissioner.

* https://nation.africa/kenya/business/cbk-lists-10-
digital-credit-providers-after-fresh-vetting-3953460

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IT Infrastructure

Ready for scale

Automated KYC
Order creation
AI based credit scoring
Automated disbursements
Repayment through mobile money and bank
Reminders and collection
Sales agent features
Monitoring dashboards
Partner API platform

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Integrations
Active integrations Sevi has integrated with several partners to automate payments (M-Pesa,
I&M bank) and KYC processes (TransUnion, AWS). We also provide an open API to integrate to
eCommerce as a payment check-out option.

Integrations coming soon Since Sevi is regulated we are working on an API integration to
CBK and KRA.

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Traction 55.000.000

50.000.000

45.000.000

40.000.000
Sum of Accounts

35.000.000

30.000.000

25.000.000

20.000.000

15.000.000

10.000.000

5.000.000

0
January, 2022 April, 2022 July, 2022 October, 2022 January, 2023 April, 2023 July, 2023 October, 2023 January, 2024 April, 2024

Agreed Date

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Portfolio Performance

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 Supply Chain

Active
Health

Active

Agri & On-

Dairy boarding

Active
FMCG
(groceries)

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 Financials

INVESTOR DECK 23.04.24 - CONFIDENTIAL INFORMATION

Pathway to Impact
2024-2025 2026-2027
# Women Micro- 16,500+ 40,000+
entrepreneurs
Increase buyer-per-seller ratio Add hardware & construction
Marketing &
Targeted marketing campaigns value chains
Sales
Add food & electronics chain

Geographic
Uganda, Ghana Rwanda, Bangladesh
Expansion

IT Improve AI and machine learning Add credit track record tool

Add financial education & insight tool
Add delivery tool

Add credit portal function as a

Partnerships
service for commercial banks

Credit fund expansion Credit fund expansion

Funding (EUR 6M) (EUR 30M))

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walter@sevi.io
+31 628 184 944