Our mobile tariff price comparison tool checks your usage to find the best money-saving deals for you.
- Over 10 years of Ofcom accreditation
- Truly independent & transparent, we only make £ when you save £££
- Delivering revenue growth, even during the Covid-19 pandemic
- Investment conditional upon Future Fund funding - see Key Info
Learn more about convertible loan campaigns.
Billmonitor was founded by a quintessential Oxbridge boffin who had an idea to use complex maths and statistics to design a new type of price comparison tool for mobile phone services, one that disregarded commission while delivering maximum savings to its users. He teamed up with two more academics and, after several years of hard work, Billmonitor was born.
So, what does all that mean for you?
We offer a more reliable way for you to choose your mobile service. Our tool analyses your ACTUAL usage from the last 3 months of billing data, which ensures that you only buy what you need, whether you are a massive data user, maniac texter or world-roaming traveller.
Billmonitor offers fully digital and online consumer services as well as consultancy-led business services, both of which are supported by a superb team of highly-competent staff.
Substantial accomplishments to date
Billmonitor's research shows that consumers are overpaying by 66% and SME businesses by an incredible 96%. This insight has enabled Billmonitor to identify savings on average of 40% or £148 annually for consumers and 49% or £195 annually per connection for SMEs.
Having a CAGR on annual revenues of over 100% over the last three years, Billmonitor was on the path to reach profitability in 2020 when Covid-19 hit. Many of our prospective clients and cooperation partners were badly affected, resulting in a period of significantly reduced growth during lockdown.
STRONG GROWTH DESPITE COVID-19 PANDEMIC
Despite the Covid-19 pandemic, we managed to deliver revenue growth of over 30% for the first six months of the current financial year 2020/21 (Apr to Sep 2020), proportionate to the financial year 2019/20.
Most importantly, our recurring monthly revenues increased by over 50% as compared to the average of 2019/20.
Recurring business revenues – monthly average
Source: unaudited management accounts
We recently appointed Terence Milner as a non-executive director and his extensive commercial and public sector experience within IT and business development will significantly improve our client reach in this important client segment.
He will also strengthen our cooperation with Value Match, a specialist procurement consultant for the public sector, where he is currently leading the Partnership function.
The management team aims to expand Billmonitor's client reach further, through increased cooperations and sales team growth.
Billmonitor focuses on fully digital online consumer services and consultancy-led business services.
- Ofcom introduced "Text-to-Switch" in Jul 2019 and "Contract-End-Date-Notifications" in Feb 2020, making switching mobile contracts easier
- Ofcom's latest initiative to implement Open Communications aims at allowing similar ease of access to user data and tariffs via API as is seen with Open Banking
- We would like to double our unique visitors from our current c.14,130 and achieve a conversion rate of 2.75%.
- Over the last three years, we increased the number of connections under management from under 100 to over 4,300
- The management team aims to further expand Billmonitor's client reach, targeting c.75% annual revenue growth over the next three years
UPSIDE POTENTIAL THROUGH PARTNERSHIPS
- We are working on several possible business and consumer partnerships, designed to boost profits.
Use of proceeds
The funding is primarily required to secure our ability to reach sustainable profitability within the next 12 months. The remaining funding will be used to finance the expansion of our sales team, including the recent appointment of Terence Milner as NED.
While Ofcom's Open Communications initiative has the capacity to transform the consumer market, and thereby generate explosive growth for our Consumer Services, the management team believes that the business market, particularly the public sector, NHS and social care market, offer the most attractive opportunities for growth of our Business Services over the next 12 months.
We have delivered significant growth this year, despite the complications presented by the pandemic, but revenue generation is still somewhat volatile. Therefore, we do require additional working capital to enable sustainable profitability.
We would expect the following allocation:
- c.50% for working capital needs
- c.30% for sales team expansion
- c.20% as buffer
The company has the following outstanding loans:
Bounce-back loan of £37,950, repayable over 60 months, commencing June 2021.
Seedrs is supporting companies who are intending to apply to the Government backed Future Fund. You can read more about the Future Fund here: https://www.seedrs.com/learn/blog/the-future-fu...
In order for a company to be eligible to seek matched funding from the Future Fund, this investment round must be on the convertible loan terms that have been prescribed by the Future Fund for this purpose. These terms differ to our normal ‘advanced subscription agreements’.
Given this product differs from most campaigns on Seedrs, we urge all investors, including regular Seedrs investors, to read the information below and ensure you understand the terms in full before making your investment.
1. Key terms
You will see a term sheet attached to this Campaign in the Documents section which sets out the key terms of the convertible loan and you can see the full document prescribed by the Future Fund here: https://www.british-business-bank.co.uk/ourpart....
A summary of the key terms is set out below, but should be read in conjunction with the term sheet:
Interest: 8% per annum, non-compounding. On conversion events, the company can choose to repay the interest or convert it to equity (generally without the discount). See the Term Sheet for more details.
Redemption Premium: An amount equal to 100% of the principal loan amount
Valuation Cap: £5,000,000
Qualifying Equity Financing. The convertible loan will automatically convert on an equity financing raising at least the total loan amount, at the lowest share price of equity financing less the Discount or, if lower, the Valuation Cap share price.
Maturity Date: 36 months from signing convertible loan agreement. The default position is on the maturity date is that the loan will convert to equity unless the investor majority elect to redeem. If redeemed, the company will repay the principal together with the Redemption Premium.
If converted, the conversion price will be at the most recent funding round share price less the Discount, provided that funding round happened after 20 April 2020 and was at least a quarter of the size of the convertible loan investment. If no such funding round has occurred, conversion will be at the share price of the last funding round prior to 20 April 2020 (no Discount). Or, if lower, at the Valuation Cap share price.
Other events of default or conversion: There are various other scenarios in which the convertible loan may convert or be repaid and investors should reference the term sheet:
Non Qualifying Funding Round: The convertible loan can convert on an equity financing round which does not meet the size criteria of a ‘Qualifying Equity Financing”, at the election of the majority of investors under the loan. Please see the term sheet for how this conversion is priced.
Exit: The convertible loan will automatically convert or be redeemed on an Exit, whichever would give investors the higher cash return. Please see the term sheet for how conversion is priced and payments on redemption in this scenario.
Events of Default: The convertible loan is to be repaid on the events of default, such as liquidation or winding up. See the term sheet for more details.
2. Government matched funding
The company intends to apply to the Future Fund for matched funding on the total eligible amount invested in this funding round. Subject to eligibility criteria and the Future Fund's approval, the Future Fund will “match” the funding raised via Seedrs or other eligible sources, subject to a minimum investment of £125,000 and a maximum investment of £5m. The Future Fund is to be allocated on a ‘first come, first served basis’ to eligible and approved businesses, so there is no guarantee that a company will receive the Future Fund matched funding.
This campaign is conditional upon receiving matched funding from the Future Fund. Seedrs will not complete the investment and transfer the funds raised until we have confirmation that the Future Fund matched funding application has been approved and that the Future Fund is ready to make the investment. If the application is denied, the campaign will be cancelled and funds will be returned to investors.
Because this campaign is conditional upon the matched funding, you will see that we have reflected the Future Fund investment as part of the round. It is distinguished in pink in the progress bar of the campaign. This is to give investors an indication of the potential total size of the funding round (and potential dilution on conversion), but to also distinguish it from regular investment through the Seedrs platform.
Seedrs does not charge any fees in relation to the Future Fund matched funding, application process or for acting as lead investor with respect to applications.
3. Conversion to equity
The convertible loan agreement prescribed by the Future Fund is equity focused and favours conversion of the loan to equity as the default position.
Redemption is only available in certain scenarios and is often subject to the vote of majority of the investors. Where a vote of investors is required, Seedrs will vote on behalf of any investors it represents as nominee.
There is a possibility that the convertible loan will convert in some scenarios without the consent of Seedrs (if we do not make up a majority of investors). It is also Seedrs’ position that this is primarily an instrument for investing in the equity of the fundraising business and our default position would be to vote in favour of converting the loans to shares in the company, unless there is a clear or compelling reason not to.
As always, investors should be aware of and accept the risks involved in investing in early stage and growth focused businesses: https://www.seedrs.com/pages/risk-warnings
In addition to the usual risk warnings included above, investors should be aware of and accept the following with respect to convertible loans:
The convertible loan agreement is intended as bridge funding to a future funding round, but there is no guarantee that a company will be able to secure further funding.
The Future Fund is to be allocated on a ‘first come, first served basis’ and there is no guarantee that a company will be successful in its application to receive the Future Fund matched funding.
There is a risk that the Company may not have sufficient funds to repay the loan on the maturity date, pay interest when it becomes due or pay the redemption premium included in the terms.
Convertible loans are unsecured obligations and in the event of a winding up or liquidation event will rank behind secured creditors of the Company.
5. Secondary market
Investors will not be able to sell their interest in the convertible loans on the Seedrs Secondary Market unless and until they have converted to shares in the company (and then only subject to eligibility and the terms and conditions of the Seedrs Secondary Market).
6. EIS Relief - past, current and future
As noted above, the convertible loan instrument is not compatible with EIS requirements, so no EIS applications will be made with respect to investments in the convertible loan.
The government has confirmed that investing in the convertible loan will not impact EIS relief previously claimed on investments in the fundraising company:
“The government has confirmed that such previous investments will not be affected where the convertible loan converts into shares. Where the convertible loan note redeems, we have been alerted that the government intends to make changes to the rules to clarify that this is compatible with such previous investments.”
However, investing in a convertible loan could impact your ability to claim EIS relief on future investments into the same company. The government has not clarified the position on this and has said it is a matter for HM Treasury and HMRC.
Seedrs is unable to provide tax advice. Tax treatment depends on individual circumstances and is subject to change.
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