Tandem is the UK’s next generation digital bank, helping customers live a better life with their money.
Business overview
Location | London, United Kingdom |
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Social media | |
Website | tandem.co.uk |
Sectors | Finance & Payments Digital B2C |
Company number | 08628614 |
Incorporation date | 29 Jul 2013 |
Investment summary
Idea
Introduction
Tandem successfully completed a c.£60m fundraising round earlier this year.
That fundraise is intended to support our planned journey to profitability over the next 18 months despite the current economic and political challenges and headwinds that the UK is facing. Completion of the transaction also saw us formally acquire Allium Lending Group, a green loans business, which will help us take greater control of our lending risk profile and drive significant new revenue opportunities. Since our launch we have stayed true to our mission of building a “good bank” and we are excited to say that we believe we have an opportunity to enhance that mission and build the UK’s first green digital retail bank: offering our customers a full service “green” proposition with innovative and intelligent saving, spending and borrowing solutions.
In fairness to all Shareholders, this “catch-up” round has been approved at the completion price in respect of your top-up and pre-emption rights that were formally waived earlier this year to allow completion of the primary round. The maximum pro-rata entitlements have been set in proportion to each Shareholders’ total shareholdings in the company immediately before signing the fundraising transaction.
We believe that we're well placed to build value in Tandem following this round of investment. Please see attached an overview of Tandem’s proposition within the broader banking industry.
Preemption details
The Company recently completed an equity fundraising round at a pre-money valuation of £44M (the “Fundraise”), as part of which Tandem Money Limited acquired Allium Lending Group (“Allium”). The acquisition comprised (1) the Allium business and the entry into low credit risk green energy loans primarily to homeowners; and (2) the beneficial title to various loan books, bringing immediate revenues to Tandem. The consideration for the acquisition was settled by the issue of Ordinary B Shares to the selling shareholders of Allium.
The Fundraise, which was subject to satisfaction of certain conditions and regulatory approval, was completed in various tranches from February to August 2020.
The initial tranche of investment in February was effected by way of advance subscriptions: an initial £12.6m from existing shareholders at a 20% discount to the completion share price of £0.25, following which a further advance subscription of £12.5m was offered to major shareholders on the same terms, of which £10.47m was subscribed in April. The Company indicated that it was unable to offer Seedrs investors the opportunity to participate in the additional advanced subscription due to timings and confidentiality issues, both of which it felt could jeopardise completion of the Fundraise.
Following receipt of the necessary regulatory approvals, the Company completed the Allium acquisition and closed a further investment from an existing shareholder and a new investor for £22.5m, alongside subscriptions from Allium lenders which were funded by the proceeds of the refinancing of Allium debt. As a result of the Fundraise, a limited partnership managed by a private equity firm now holds a controlling interest in Tandem.
Seedrs investors are now being given the opportunity to participate in the Fundraise at the completion share price (rounded to the nearest whole pence) of £0.25.
Tandem is happy to accept investments beyond your individual pro-rata entitlement as part of this round, so you may invest more than your allowance if you wish.
The company will have a 15% option pool post the close of this round. We have included the effect of this option pool into the pre-money valuation based on the shares currently issued in this round.
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