Frost is a next-generation digital account helping to save time, money and the planet.
- 12,000+ users
- Processed over £20m* of transactions for our users
- Principal members of VISA
- Key collaboration with IBM
Frost is a next-generation digital account designed to save time, money, and the planet. The business is FCA-authorised as an EMI with a user-friendly interface, as well as its own core banking and transaction monitoring system.
Through intelligent automation, we’ve built a Save Assist feature that seamlessly connects to utility providers, enabling users to save up to an estimated £1,000 per annum on essential household bills.
In addition to household savings, Frost has a green focus from the outset. Frost is a certified CarbonNeutral® company, with green initiatives at the forefront of their product development. Their roadmap includes a green savings account, auto-investing in green investments and educating consumers on the carbon footprint of companies that they are purchasing from.
Founded by a team of serial entrepreneurs, Frost is now looking for funding to grow their user base and launch several new products this year.
Substantial accomplishments to date
Frost has achieved significant progress since its inception, the key accomplishments to date are:
• August 2021 - Frost was approved by the UK FCA as a Small Electronic Money Institution
• February 2022 - Principle members of VISA
• June 2022 - Public launch
To date, Frost has experienced significant growth with 12,000+ users and over £20m* of transactions processed for our customers.
Frost has also bulked up its fraud prevention with integrations with CIFAS and advanced AML / transaction monitoring system, along with numerous product development including Google pay, automated card management, video onboarding and 3DS biometric authentication.
Frost has diversified its revenue streams away from a traditional digital account revenue. Whilst we have diversified, we still receive these revenue streams but we treat our revenues in two distinct categories:
1. Traditional ancillary digital account revenue
• Card fees - interchange revenue, delivery fees, closure fees
• Foreign exchange
• Interest on customer balances, both on and off our clearing bank
• Premium account via a monthly subscription (on the roadmap for 2024)
2. Affiliate / switching revenue
• Using the save / assist functionality, the business takes commission for every switch that is successfully completed
Use of proceeds
The funds will predominantly be spent on further development of the product and an increased marketing budget to acquire further customers.
These enhancements include:
• Extending the save/assist tool to also include broadband, insurance, telephone and remortgaging.
• Enhancing the core platform to include ApplePay, standing orders and Confirmation of Payee.
• Broaden the product suite to offer interest and auto-save green products.
• Educate consumers on the carbon footprint of companies they're purchasing from.
The business will also invest heavily in marketing and user acquisition through the following channels:
• Referral programme - we’ll introduce a ‘refer a friend’ element with green-focused rewards, e.g. plant a tree.
• Organic growth through continuous development of our website, campaigns, innovation and UX improvements.
• Paid campaigns - increase our brand awareness, develop a partnership model and retarget those lost in the onboarding journey.
*Based on unaudited management accounts
The Company’s Co-Founders and Directors, Edyta Sliwinska and Pawel Oltuszyk, work full-time on Frost Money Ltd. They also retain their roles as co-founders and directors at the following companies:
1. Optimal Strategies Limited (a business offering web design services)
2. Optimal Claim Limited (a business offering legal services)
3. Optimal Med Limited (a business offering medical-legal reporting)
While they retain ownership, they are not involved in the day-to-day running of these companies.
The Company Director and CSO, Andrew Jennings, works for Frost Money Ltd alongside his role as Managing Director and owner of Osun Holdings Ltd, and its subsidiaries. Osun Holdings Limited is an investment company with a focus on early-stage technology companies.
The Company has the following outstanding loans:
£ 1,333,019.00 loans from Optimal Strategies Limited, Optimal Med Limited, Optimal Claim Limited, and Osun Holdings Limited at an interest rate of 0%. The loans are to be repaid when i) the Company’s net profits exceed £100,000 per annum and ii) repayment has been agreed via investor majority consent (or otherwise on an exit). All companies listed are owned by the founders of Frost Money Ltd.
The funds raised from this investment round will not be used to repay these loans.
The company has been operating on a monthly cash burn rate of c. £125,000 until February 2023. This will be reduced following this round due to a lower need for spend on technology development and management actions taken to reduce expenditure. The reduced expenditure is not expected to impact revenue traction or product development. The company will therefore reduce monthly cash burn to £70,000, which will ensure sufficient funds for 9 months runway.
Please note, £707,000 of the raised funds reflected in the campaign were received by the company in September and October 2022. These investments are a part of the same round and are on the same terms as Seedrs investors.
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