Close

Jump to:

  • Navigation
  • Content
  • Footer
Zvilo hero image

Zvilo

Follow

Zvilo is a credit-led digital bank for the Balkans and emerging markets with a sustainable focus.

112%
 - 
Funded 17 Nov 2022
£300,001 target
£336,386 from 278 investors
More
Less

Business overview

Location London, United Kingdom
Social media
Website www.zvilo.com
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 11342079
Incorporation date 2 May 2018
More
Less

Investment summary

Type Equity
Valuation (pre-money) £10.3M
Equity offered 3.15%
Share price £0.97
Tax relief N/A
More
Less

Business highlights

  • Huge Market: ~40% Unbanked | ~€11b Remittances (p.a.) | High Fees
  • Kosovo Market Launched | Launch North Macedonia & Albania in '23*
  • €50m Debt Facility signed with Fasanara Capital
  • SME Product Launched I Revenue Generating
More
Less

Key features

  • Secondary Market
  • Seedrs nominee min. £10.67 +
  • Idea
  • Investor Perks
  • Key Information
  • Team
  • Updates
  • Investors 278
  • Discussion
  • Documents

Idea

Introduction

Zvilo is on its way to becoming the first digital bank in the Balkans, providing ­­seamless connectivity, low fees, and accessible credit, and later bringing its offerings to other emerging markets.

Digital banks are present in most of Western Europe; however, the Balkans have been overlooked, and we believe the region is poised to become the next major growth market in Europe. There is a huge opportunity for Zvilo to modernise the banking experience in the Balkans.

The Balkan region has a population of over 21m, of which almost 40% remain unbanked. Moreover, 41% of businesses in the region need loans, but collateral requirements are almost 200%, which means funding is less accessible for SMEs.The diaspora of Balkan people is over 6m, with more than €11b being sent to their families in the Balkans each year. Through Zvilo, SMEs and consumers can take advantage of up to 85% savings across all banking and transfer fees.

We believe in a financially inclusive future, and it's our goal to make affordable financial products & services accessible to all.

Substantial accomplishments to date

✔️ €50m debt facility signed with Fasanara Capital, turbocharging our SME lending.

✔️ The development and successful launch of Zvilo’s proprietary digital platform for our supply chain finance program.

✔️ Successful onboarding of our initial value chains. We are in the process of onboarding several more by Q1 2023.

✔️ Continued revenue generation since the launch of our SME lending product in Kosovo in December 2021 while building a quality loan book with zero losses and NPLs.

✔️ Growth in our Kosovo and London teams with the commencement of three new full-time staff members.

✔️ Development of the Zvilo app prototype showcasing key features, including consumer microloans, specialized SME loans, remittance transfers and B2B and B2C payments.

✔️ Lending (factoring) license secured from the Central Bank of Kosovo in November 2021.

✔️ Signed a Memorandum of Understanding (MoU) with Mastercard, affirming Mastercard's support towards the region and Zvilo's business model.

✔️ Aligned with United Nations Sustainability Development Goals (SDGs) and adopted Environment, Social and Environment (ESG) commitments.

Monetisation strategy

We believe that building a loan book from the very beginning is key to building a sustainable digital bank that generates revenue from day 1. As we scale our lending product in Kosovo & expand operations into other markets, we will kick-start our consumer lending and transactional banking via the Zvilo app.

What sets us apart from other digital banks is our specialised lending across these key revenue streams:

1. SME Lending: we provide short-term working capital facilities to SMEs across systemic value chains.

2. Consumer Lending: through the Zvilo app, credit-eligible consumers will be able to obtain microloans, such as Buy Now Pay Later, overdrafts & credit cards.

3. Money Transfer: through the Zvilo app, Balkan nationals can transfer funds from the UK & EEA to their families in the Balkans & vice-versa with savings of up to 85%.

4. Transactional Banking: Zvilo will receive interchange, FX and payment fees with each transactional use of the card products and payments.

Use of proceeds

A successful round of funding will enable Zvilo to grow its loan book and revenue, help prepare its entry into North Macedonia and Albania, invest in technology and expand its product offering. The primary use of funds will be for:

— Further development of Zvilo’s proprietary SME platform and its Zvilo app

— Launching Zvilo in North Macedonia and Albania*

— Scaling Zvilo’s SME loan book in Kosovo, North Macedonia and Albania

— Expansion of Zvilo product offering

— Accommodating the growth of the Zvilo team and the ongoing costs associated with human resources, operations and strategic planning

— Marketing activities related to Zvilo products and the investor community

*Zvilo is not yet regulated in these jurisdictions but has begun the preliminary steps.

Investor Perks

Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

Key Information

Debt

Please note that the business has agreed to the following outstanding debt obligations.

Please note that the business has agreed to the following outstanding debt obligations.
In order to scale up its lending capacity, the company has agreed to a debt facility of up to £50,000,000 from a debt fund (the “Lender”).

Funds drawn down by the business accrue interest of up to 9% and are paid in arrears on a quarterly basis.

Term of the debt facility is 2 years and can be extended for 1 additional year at the Lender’s discretion. At the end of the term, the debt facility may be renegotiated and extended if the company is successfully deploying the capital, originating loans to its clients and building track record.

Outstanding Warrants

As part of the agreement with the Lender, as set forth above, the business agreed to issue one equity warrant outstanding which is exercisable at any time by the Lender for a period of 24 months after signature of the warrant instrument and at the discretion of the warrant holder.

This warrant enables the warrant holder to subscribe up to 12.5% equity of the fully diluted capital of the company at a share price based on a £10m valuation. The exercise of the warrant by the Lender will not trigger Seedrs’ investors pre-emption rights as pre-emption rights have been waived in respect of these warrants.

This warrant, if exercised, would dilute existing investors at that point in time.

In addition, for a period of 24 months after signature of the warrant instrument, the warrant holder will have pro-rata pre-emption rights on further issuance of shares to increase its shareholding up to 17.5% of the fully diluted capital of the company, at a price per share based on the company’s valuation applicable for the corresponding round of financing.

The terms of the warrant have been agreed with the Lender alongside the terms of the debt facility, as explained above, and take into consideration that the Lender is willing to lend significant funds to further develop the company’s business opportunities.

Share Classes

The company currently has two classes of shares, Ordinary Shares and Growth Shares.

Ordinary Shares receive the right to dividends and to vote. On a winding up, all share classes participate pro rata.

Growth shares share the same rights as Ordinary shares, except for Voting rights, which they do not receive. Growth shares are exclusively for employees.

Investors in this round will be receiving Ordinary Shares.

Business Subsidiary

Zvilo Ltd. has a Subsidiary located in Kosovo. The Subsidiary is 100% owned by Zvilo Ltd.

Investment Disclosure

£274,848.53 of the investment being reflected as part of the amount raised was received by the company between 06/05/22 and 29/07/22. The investment is on the same terms as the Seedrs investment.

Open an account to get access to the team members of Zvilo

Sign up

Already have an account? Log in

To comply with financial regulations, we can only show full campaign details to registered users.

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Share on:

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £10,322,721

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

Find out more

Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

Find out more

Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

Find out more

Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Warning

You are following a link outside of www.seedrs.com.

None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

ContinueCancel