Highlights

Introduction

Bloom Financial Group Ltd are building a highly defensible niche, with limited competition in a market segment that is yet to be penetrated. Bloom lends to online brands benefiting from the recent acceleration of ecommerce sales across Europe and insulating Bloom from non-performing loans in the retail sector. Ecommerce lending portfolios can yield 20 20-30 %.

Distribution is built in through partnerships with Europe’s fragmented PSPs and Acquirers (who are under revenue pressure given regulatory fee caps), Marketplace partners and ecommerce platforms. The Board believe that the existing pipeline of partners gives access to enough revenue opportunity to deliver the first 2-3 years of the plan. To hit year five, Bloom only need reach 4% of their target market.

Bloom are targeting small and mid sized ecommerce merchants with revenues <10M EUR and small businesses selling through market places and directly on web platform. They plan to expand over time to larger merchant profiles in line with cost of funding.

The UK to be outpaced in terms of growth rate by 9 EU countries as market grows (Spain, Portugal, Finland, Sweden, Netherlands, Italy, Czech Republic).

Bloom Strategy

The Bloom strategy is outlined below:

First 12 Months Focus

• Target ecommerce merchants in markets where there is little to no competition and a strong legal collections framework.
• Execute on deals with distribution partners.
• Expand judiciously, keep operating costs and team size small.
• Originate 20 -30M EUR.

Product

• Lend to merchants against future sales, no specialism on lending use i.e. inventory, marketing.
• Ensure Bloom is re re-paid from revenue not from operating cash and charge a factor fee that is comfortably within a merchants operating margin.
• Provide complimentary products – Bloom Insights, Payments and Cards to increase retention.

Distribution

• Partner with cross border (Amazon, Ebay , Zalando etc.) and local marketplaces ( Blocket ) to identify, underwrite and offer merchant finance.
• Partner with PSPs and Acquirers who need yield given EU pricing pressure(see appendix, e.g. HIPS), 0.65bps revenue share.
• Direct, via ecommerce platform plugins and low low-price payments.

Marketing

• “Capital to finance your ecommerce or retail brand in 24 hours or less“.
• “Capital to grow your business without dilution”.
• “Payments & Finance in one
• Increase merchant retention, grow top line revenue

Key Target KPIs

• Minimal credit losses in the first 12 months
• Deploy 20-30M EUR
• 85+ NPS score
• Disciplined underwriting using modern underwriting methods (bank data, revenue data, CRA data, alternative data)

Follow-on Opportunities

• Specialisation of lending products with additional integration e.g. inventory financing, marketing etc.
• Add retail brands in specific segments insulated from covid19

Management Team

James Hickson - CEO and Founder of Bloom

James is a seasoned entrepreneur and experienced Banker. James was the Head of Fintech at Morgan Stanley New York and had spent 15 years in senior positions at the Bank. He was most recently Group CEO of Mash where he successfully grew the revenues from €9m to over €34m.

In 2018 Mash was awarded best company by Fintech50 and most outstanding online payment provider in 2019. In the same period James was also recognized as the Most influential Fintech CEO by AI Global Media.

Offer Terms

Section 708 disclosure: The issuer of the securities is Bloom Financial Group Limited CRN 12207362. The securities to be issued are Convertible Notes. The information provided on the OnMarket website has been prepared byBloom Financial Group Limited, and OnMarket makes no representation as to its accuracy or completeness.  No prospectus has been prepared and accordingly, the Offer is being made to sophisticated, experienced and professional investors only.  

The Investor Presentation is intended to provide potential investors with information only and does not constitute a prospectus, short form prospectus or other disclosure document as defined in the Corporations Act 2001 (Cth) (“the Act”). This document has not been lodged with the Australian Securities and Investments Commission ("ASIC") or any other government body. The offer made under this Investor Presentation is only available for persons who qualify as sophisticated or experienced (as defined in s708(8)-(10) of the Act), professional investors (as defined in s708(11) of the Act), investors to whom personal offers are made under s708(1), or investors to whom disclosure is otherwise not required under Part 6D of the Act (collectively, “Qualified Investors”).