XTXFX Business Plan — Funding Structure and Capital
R45m seed equity, R85m Series A in Year 3 and a senior debt facility scaling to about R132m drawn against eligible receivables.
Funding Structure and Capital
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market Context and Opportunity
- 3. Regulatory Framework and NCR Registration
- 4. Products and Pricing
- 5. SWOT and Competitive Position
- 6. Credit Policy and Risk Management
- 7. Technology and Operations
- 8. Go-to-Market
- 9. Governance and Team
- 10. Financial Plan
- 11. Funding Structure and Capital
- 12. Break-Even and Credit Sensitivity
- 13. Sensitivity and Scenario Analysis
- 14. Risk Management
- 15. Implementation Roadmap
- 16. Investor Returns and Exit
- 17. Key Performance Indicators
- 18. Key Assumptions
- 19. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Unit Economics and Volume Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: NCR Registration Checklist
- E. Appendix E: Risk Register
- F. Appendix F: Glossary
- 11.1 Sources of capital
- 11.2 Use of seed proceeds
- 11.3 Debt, gearing and cover
- 11.4 What each funding source is actually buying
11.1 Sources of capital
|
Source |
Amount |
Timing |
Purpose |
|---|---|---|---|
|
Seed equity |
R45.0m |
At close |
Loan book capital, platform build, NCR registration and compliance infrastructure, and the operating deficit through to break-even |
|
Series A equity |
R85.0m |
Year 3 |
Loan book growth capital, on the basis of two full vintages of demonstrated credit performance |
|
Senior debt facility |
Scaling to R131.5m |
From Year 2 |
Loan book funding only, drawn against eligible receivables at 14.0% |
|
Total capital at peak |
R261.5m |
Funding a R283.6m gross book |
11.2 Use of seed proceeds
|
Use of seed proceeds |
R million |
% of seed |
|---|---|---|
|
Loan book capital |
26.0 |
57.8% |
|
Technology platform build and integrations |
6.5 |
14.4% |
|
Operating deficit to break-even |
6.0 |
13.3% |
|
Compliance, registration, legal and audit setup |
3.0 |
6.7% |
|
Customer acquisition — initial cohorts |
2.5 |
5.6% |
|
Working capital buffer |
1.0 |
2.2% |
|
Total seed |
45.0 |
100.0% |
11.3 Debt, gearing and cover
|
R million |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Gross loan book |
13.2 |
54.0 |
121.9 |
201.3 |
283.6 |
|
Senior debt drawn |
— |
34.3 |
10.2 |
72.0 |
131.5 |
|
Interest expense |
— |
2.4 |
3.1 |
5.8 |
14.2 |
|
Shareholders’ funds |
33.9 |
23.5 |
109.1 |
120.0 |
136.0 |
|
Gearing, debt to debt plus equity |
— |
59.4% |
8.6% |
37.5% |
49.2% |
|
Debt as a share of the gross book |
— |
63.4% |
8.4% |
35.8% |
46.4% |
|
EBITDA to interest expense |
n/m |
n/m |
1.64x |
3.22x |
2.33x |
Gearing peaks at 59.4 per cent in Year 2, when the deficit is at its worst and the Series A has not yet arrived, and settles at 49.2 per cent by Year 5. Debt funds 46.4 per cent of the gross book at Year 5, which is a conservative position for a specialist lender and leaves covenant headroom for a facility typically sized against eligible receivables. The book self-liquidates within fifteen months, so an origination freeze converts it to cash quickly, which is the principal structural protection a funder has in this business.
11.4 What each funding source is actually buying
|
Source |
What it funds |
What it requires |
What happens if it does not arrive |
|---|---|---|---|
|
Seed equity, R45m |
The platform, the compliance stack, the registration and the operating deficit through to break-even |
A credible team and a defensible plan. No trading history exists to underwrite |
There is no business. Every component must be built before the first loan |
|
Senior debt, from Year 2 |
Loan book growth beyond available equity, drawn against eligible receivables |
Trading history and an eligible receivables base. It cannot be drawn in Year 1 |
Book growth is capped at the equity available. The plan slows rather than stops |
|
Series A, R85m in Year 3 |
Book growth from R122m to R284m across Years 3 to 5 |
Two full vintages of demonstrated credit performance. This is what Months 9 to 14 exist to produce |
Growth halts at roughly the Year 3 book. The business remains profitable but small, and the exit case weakens materially |
The sequencing matters more than the amounts. Seed equity funds things that cannot be financed by debt because they are not assets, a registration, a compliance function, a scorecard that does not yet exist. Senior debt funds receivables, which is the only thing in this business a lender will secure against. And the Series A is priced not on the plan but on two years of vintage evidence, which is why the roadmap treats proving the scorecard as a phase in its own right rather than as something that happens while scaling.