Acquisition Opportunity - Project Hydra

Background: 

• Our client is UK & Europe’s most technologically advanced consumer risk solution, helping ‘Fortune 500’, public and globally leading companies to prevent fraud, automate their underwriting process, and achieve more approvals without undue risk.
• Since its VC round in Q4-2020, our client has scaled rapidly, growing 8.3x from FY19 to FY22 and forecasted to double in FY23., but it is now seeking further investment, a strategic partner or a full acquisition to achieve its ambitious growth objectives. Both shares and business & asset sales will be considered.
• Having developed extensive proprietary technology, to assess any applicant profile, our client has worked with over 235 clients, assessing over 175k people and generating £3m of revenue to date, with an 81% gross profit margin – whilst achieving a loss ratio of <0.4% (competition >10%).

Key products:

• Consumer Risk Analysis – A full financial viability risk assessment capable of assessing any consumer profile, finding fraud and offering a customised underwriting flow via a Web app or API.
• Document Fraud Check – Assess any applicant from anywhere whilst remaining fully compliant. Instantly authenticate genuine documents and flag document fraud through a secure web portal or easy-to-integrate API.
• Rental Guarantor Services – Allow customers to approve more customers risk-free by guaranteeing the applicants’ liabilities and assets without the common pain points that stem from standard insurance policies.

Key investment highlights:

• Proprietary, fully developed, technological solution to assess consumer credit risk.
• Established client base who trust our client’s products/ service, with significant growth opportunities.
• Revenue generating and targeting breakeven/profitability from June 2023.
• Generated £5.5m in cumulative funding since inception.
• Vertical diversification to use the established technological platform to manage credit/consumer risk in other sectors, such as credit card providers, asset finance, mortgages, B2B lenders, compliance marketplaces, banks.
• Significant opportunity to scale across new markets and countries with existing infrastructure.

Key Financials