Switchpoint Payments Business Plan — Appendix C: Funding, Cash and Balance Sheet Schedules
Seed and Series A schedules, the cash runway, the opening balance sheet and the working capital position by year.
Appendix C: Funding, Cash and Balance Sheet Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Opportunity
- 3. Market and Regulatory Context
- 4. Product, Technology and Security
- 5. Go-to-Market and Unit Economics
- 6. SWOT and Competitive Position
- 7. Financial Projections
- 8. Cash, Funding and the Balance Sheet
- 9. Sensitivity and Scenario Analysis
- 10. Risk Analysis
- 11. Regulatory, Compliance and Licensing
- 12. Organisation and Management
- 13. Implementation Roadmap
- 14. Key Performance Indicators
- 15. The Offer, Returns and Recommendation
- 16. Assumption Register
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Volume, Pricing and Unit Economic Schedules
- C. Appendix C: Funding, Cash and Balance Sheet Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- C.1 Sources and application of the seed round
- C.2 Cash waterfall
- C.3 Balance sheet
- C.4 Modelled returns and dilution
C.1 Sources and application of the seed round
|
R million |
Share |
|
|---|---|---|
|
Seed equity |
22.0 |
95% |
|
Existing cash |
1.1 |
5% |
|
Total at closing |
23.1 |
100% |
|
Platform engineering and integration build |
(8.6) |
39% |
|
Commercial, partner enablement and merchant acquisition |
(3.9) |
18% |
|
Sponsor bank, scheme certification and PCI DSS Level 1 |
(3.4) |
15% |
|
Risk, compliance and legal establishment |
(2.3) |
10% |
|
Working capital and contingency |
(2.2) |
10% |
|
Terminal fleet and equipment |
(1.6) |
7% |
|
Total application of seed proceeds |
(22.0) |
100% |
C.2 Cash waterfall
|
R million |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Opening cash |
23.1 |
10.7 |
78.8 |
59.9 |
50.1 |
|
EBITDA |
(11.4) |
(15.6) |
(16.7) |
(6.6) |
19.2 |
|
Terminal fleet capital expenditure |
(0.1) |
(0.4) |
(0.8) |
(1.4) |
(2.0) |
|
Other capital expenditure |
(0.9) |
(0.9) |
(1.4) |
(1.8) |
(2.0) |
|
Taxation paid |
— |
— |
— |
— |
(0.9) |
|
Equity raised |
— |
85.0 |
— |
— |
— |
|
Closing cash |
10.7 |
78.8 |
59.9 |
50.1 |
64.4 |
|
Funding milestone |
Value |
Note |
|---|---|---|
|
Seed round |
R22.0m |
At R57.0m pre-money for 28% of post-money |
|
Runway to cash zero |
19 months |
Absent a further round |
|
Cash trough |
R5.6m |
Month 15 |
|
Series A |
R85.0m |
Closing month 16 at R380.0m pre-money |
|
Board trigger to commence the round |
Month 10 |
The process takes six months and cannot be compressed |
|
EBITDA breakeven |
Month 45 |
The fourth year of trading |
C.3 Balance sheet
|
R million, at year end |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Platform and terminal fleet, net |
0.8 |
1.6 |
2.7 |
4.0 |
5.2 |
|
Trade receivables at 22 days |
0.2 |
1.1 |
3.1 |
6.5 |
11.5 |
|
Merchant settlement funds |
2.2 |
13.4 |
38.1 |
82.1 |
148.6 |
|
Company cash |
11.9 |
80.9 |
63.4 |
55.1 |
70.5 |
|
Total assets |
15.1 |
97.0 |
107.3 |
147.7 |
235.8 |
|
Share capital and premium |
23.1 |
108.1 |
108.1 |
108.1 |
108.1 |
|
Accumulated deficit |
(11.6) |
(27.6) |
(45.1) |
(52.9) |
(36.3) |
|
Total equity |
11.5 |
80.5 |
63.0 |
55.2 |
71.8 |
|
Merchant settlement liability |
2.2 |
13.4 |
38.1 |
82.1 |
148.6 |
|
Trade and other payables at 34 days |
1.4 |
3.1 |
6.2 |
10.4 |
15.4 |
|
Total liabilities |
3.6 |
16.5 |
44.3 |
92.5 |
164.0 |
|
Total equity and liabilities |
15.1 |
97.0 |
107.3 |
147.7 |
235.8 |
C.4 Modelled returns and dilution
|
Value |
Note |
|
|---|---|---|
|
Seed holding at closing |
28% |
Of R79.0m post-money |
|
Option pool at seed |
12% |
Established pre-money |
|
Series A pre-money |
R380.0m |
Post-money R465.0m |
|
Option pool top-up at Series A |
6% |
|
|
Seed holding after both |
21.5% |
The basis of every return figure in this plan |
|
Exit assumption, FY2031 |
Enterprise value (Rm) |
Proceeds to seed (Rm) |
Multiple |
Internal rate of return |
|---|---|---|---|---|
|
3.0x net revenue |
R571 |
R123 |
5.6x |
41% |
|
4.5x net revenue |
R856 |
R184 |
8.4x |
53% |
|
6.0x net revenue |
R1 141 |
R245 |
11.1x |
62% |
|
7.5x net revenue |
R1 426 |
R307 |
14.0x |
69% |
|
9.0x net revenue |
R1 712 |
R368 |
16.7x |
76% |