XTXFX Business Plan — Appendix B: Unit Economics and Volume Schedules

Per-loan unit economics and the monthly origination volume schedules underpinning the five-year projection.

Appendix B: Unit Economics and Volume Schedules

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  • B.1 Product unit economics
  • B.2 Volume and mix schedule
  • B.3 Cost schedule

B.1 Product unit economics

Component

XTXFX Flex

XTXFX Term

Principal

R3 500

R18 000

Term, months

4

15

NCA category

Short-term credit transaction

Unsecured credit transaction

Interest rate

4.5% a month

23.0% a year on a reducing balance

Regulated ceiling

5% / 3% a month

24.85% a year

Interest income

R394

R2 846

Initiation fee

R415

R1 050

Service fees

R240

R900

Credit life commission

R243

Total lifetime revenue

R1 049

R5 039

As a share of principal

30.0%

28.0%

Mature write-off

13.0% of principal

10.5% of principal

Strategic role

Acquisition and data generation

The profit engine

B.2 Volume and mix schedule

Year 1

Year 2

Year 3

Year 4

Year 5

Loans disbursed

6 550

20 600

39 200

57 500

75 000

Flex loans

6 000

18 000

33 001

46 999

60 000

Term loans

550

2 600

6 199

10 501

15 000

Term share by number

8.4%

12.6%

15.8%

18.3%

20.0%

Value disbursed, R million

30.9

109.8

227.1

353.5

480.0

Average loan size

R4 718

R5 330

R5 793

R6 148

R6 400

Term share by value

32.0%

42.6%

49.1%

53.5%

56.3%

New customer share

74%

58%

44%

34%

28%

B.3 Cost schedule

R million

Year 1

Year 2

Year 3

Year 4

Year 5

Customer acquisition

1.8

4.5

6.6

7.4

8.0

Direct cost to serve

0.5

1.6

3.1

4.6

6.0

External collections

0.4

1.3

2.7

4.2

5.8

Total variable costs

2.7

7.5

12.4

16.3

19.7

Fixed operating costs

11.0

16.2

21.6

26.2

30.0

Depreciation

1.3

1.3

1.3

1.3

1.3

Total operating costs

15.0

25.0

35.3

43.8

51.0

Cost per loan disbursed

R2 296

R1 214

R901

R761

R681