Digital finance solutions for merchants and consumers - Oct 2020 Revo Technologies LLC - Mintos
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Digital finance solutions for merchants and consumers Oct 2020 Revo Technologies LLC 1
Overview of Revo
Founded in late 2012, Revo is the leading fintech company specialized in digital purchase financing or
“buy now, pay later” solutions in Russia and CEE
Operating under the consumer brand Mokka across markets, the Company offers instant, paperless
purchase financing for on- and off-line merchants and their shoppers, leveraging advanced mobile
internet, cloud and data analytics technologies
Revo’s customer acquisition takes place in more than 7,100 leading on- and offline stores in Russia and
Poland, partnering with leading merchants in key consumer categories such as footwear, apparel, kids,
electronics, health and beauty, jewelry, furniture and others
Revo’s Russian business achieved profitability in Q4 2018 and has been profitable for 8 consecutive
quarters. Revo entered the CEE market and launched operations in Poland in Q4 2018. Currently Revo
Poland operates in 80+ stores with six major partners. Revo is now scaling its operations in Poland and
plans to launch operations in Romania in 2020.
Revo has successfully completed two rounds of institutional financing for the Russian business with
leading regional tech investors – Vostok Emerging Finance in Sept. 2015 and Baring Vostok Capital
Partners in Jan. 2017 totaling over USD 25 million. In April 2018, Revo successfully closed its seed
round for USD 2 million for funding the CEE launch, led by Castel Capital.
2
Buy Now Pay Later services is one of the highest valued
segments of fintech globally
Scandi, Germany, US, UK US Australia, US, UK China
Valued: ~5.5 bn USD Valued:~4.4 bn USD Valued: ~2.9 bn USD Valued: ~7.9 bn USD
@ IPO @ IPO @ IPO
US US India India
7 rounds: USD 920 mln 3 rounds: 200 mln USD 3 rounds : 49 mln USD 3 rounds: 42 mln USD
Valued: 2.9 bn USD
3
Revo is the leader in digital purchase finance in Russia and CEE
~7,100 >8,0 mln >5,0 mln >280 mln USD 60% p.a.
merchant applications unique cumulative transaction
stores offline reviewed registered transactions value growth in
and online1 customers2 financed3 the last 3 years
11 Partner stores where Revo’s services are available 22 Consumers who have applied for financing with Revo 3 Cumulative value of financing by Revo
4
Sizeable ‘Buy Now Pay Later’ opportunity in Revo’s core markets
Services spend >110 bn USD
• Revo is operating in top 3 markets in the
Durables spend region – Russia and Poland are active;
>75 bn USD Romania is awaiting licensing (expected in
Q1 2020) – these are the largest markets with
~200 mln consumers and 215+ bn USD of
addressable consumer spend
New
• Retail spend in Revo’s core markets is growing
Non-durables
New
categories spend at 3x EU average (6% p.a.), double digit growth
>135 bn USD of online spending
• Annual new consumer finance volume in
target markets is 300+ bn USD and shows
double digit growth
• No direct fintech competition
5
Revo has a unique partnership origination model, attracting target
younger millennials at the lowest cost
• 82% women
• 55% younger than 35 y.o.,
• 77% less than 45 y.o.
• 59% with children
• Active shoppers
• Average household income
•
Revo has developed a suite of omni-channel solutions to
rapidly onboard and support leading merchants
APIs and SDKs for rapid Full in-store sales support
onboarding of physical toolkit – personnel training,
and on-line stores POSM, mobile app for stores,
customer care
Best conversion performance
• 15 seconds to decision
• 2-3x higher basket
• +25% higher conversion
• +45% higher repeat rate
4+ million customer base of Revolving purchase limit for
young and active shoppers easy repeat shopping, with
with unique data, highest range of financing offers –
approval rate in the market installments from 3 to 24
months fully or partially
subsidized by retailers
7
Revo is available in >7,100 stores, most of which work with Revo as the sole
provider of store financing
Connected stores, #
8 000
7 229 7 129
7 000 6 500
6 2626 350 6 178
6 000 5 579
5 004
5 000
4 076 4200
3 815 3 684
4 000
3 152
3 000
2 229
1 941 1 773 1 921
2 000 1 623 1 678 1 633
1 317
1 000 546 590
-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020
8
The portfolio of partners is well diversified across consumer categories
Split of merchant transaction volume by category, %
2% Other*
4% 7% 6%
13%
25% 20% 18% Electronics
5%
26% 21% 22% Apparel & sports
23%
23% 25%
23% Jewelry
52%
19% 21% Kids
27%
10% 8% Footwear
Q3 2017 Q3 2018 Q3 2019 Q3 2020
Footwear Kids Jewelry Apparel Electronics Other
9
* Other categories include marketplace, furniture, travel, health & beauty, auto
Online retailers are a growing source of customer acquisition and
transactions
Split of merchant transaction volume by channel, %
100% 1%
13%
90%
34% 34% Online
80%
70%
60%
50% 99%
87%
40%
66% 66% In-store
30%
20%
10%
0%
Q3 2017 Q3 2018 Q3 2019 Q3 2020
10Exposure to individual customers is low with average transaction
value of USD 115 and duration of 7 months
Avg. transaction value, USD Avg. duration
~ 7 mo.
143 148
127 128
121 125
115 115 115
105 90
95 99
90 82
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
11Revo leverages third party and proprietary data to drive asset
quality improvements through ongoing model evolution
Quarterly vintage collection curves, % of principal collected, Q1 2018 - Q3 2020
120%
% of principal collected
100%
80%
60%
40%
20%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Months from origination
12For qualified customers, Revo offers pay-later as part of a one-stop
universal advance service delivered via its mobile app
• Revo acquires new customers via pay-later financing in on- and offline stores,
where the average 1st purchase with Revo is USD 135
• After paying off 1st purchase, Revo reviews the amount of the available
limit and offers qualified customers a universal revolving credit line,
which can be used for paying for more purchases as well as for other
advances / pay-later needs
• In addition to pay-later in stores, Revo offers its qualified customers the
following other services which they can pay in installments:
• Cash advance
• Virtual credit card with GooglePay / ApplePay
• Pay utility bills and phone top-up
• Send money to friends and family
• Buy Insurance
• Avg. available purchase limit for qualified customers is 345 USD
• Non-store financing services account for ~30% of all new transactions
13Revo: key highlights through 9m 2018 – 9m 2020
Origination volume, USDm Origination source, % Gross revenues1, USDm
62,7 16% In-app
56,1 33%
46% advances 22,7
39,4
14,4
Store
84%
67% purchases 7,4
54% (online and
in-store)
9 mo 2018 9 mo 2019 9 mo 2020 9 mo 2018 9 mo 2019 9 mo 2020
9 mo 2018 9 mo 2019 9 mo 2020
Net transaction margin, %3 Avg. spend per active client
Avg. APR of portfolio, %2
(USD/year)
11,3%
128%
8,3% 324,4
83% 268,8
76%
5,5%
149,7
9 mo 2018 9 mo 2019 9 mo 2020 9 mo 2018 9 mo 2019 9 mo 2020
9 mo 2018 9 mo 2019 9 mo 2020
(1) All interest, fee and commission income from loans
(2) Avg. annualized gross interest, fee and commission income as a % of average portfolio
(3) Gross interest, fee and commission income less risk, funding, and all variable costs as % of average transaction
14Revo has a strong team of founders and executives
Irene Shvakman, Co-founder Fernando Silva, Co-founder
21 years experience in financial services and 20+ years experience in risk management as CRO
retail as Senior Partner, McKinsey & Co., Head of Renaissance Credit in Russia, GE Capital and
financial services practice in CEE and Russia, Citibank in Brazil and Mexico
Head of Consumer Finance practice in EMEA
MSc Finance, U. Birmingham, UK
MBA, Harvard Graduate School of Business, ScB
Biochemistry, Brown University, US MSc Metallurgical Engineering, U. Mackenzie, Brazil
Timofey Shagun, GD Russia Sergey Bogdanov, CRO
10+ years experience in retail and financial services 12+ years in various risk management roles, inc. as
Head of retail risk at lenders Renaissance Credit,
Member of Presidium of Self-Regulatory Org. MIR Trust, Uralsib
MSc Finance and credit, Military Academy of Finance MSc Computer Science and Computer Engineering,
and Economics, Russia MSc Law, All-Russian State Moscow State Technical University of Bauman,
University of Justice, Russia Russia
Sergey Arens, Merchant dev’t, Russia+CEE Oleg Stelmach, CTO CEE
10+ years experience in key account sales and marketing 8+ years experience in IT lead role,
roles at Procter & Gamble in FMCG
and Consumer Luxury goods 5+ years as PM (PRINCE2® Practitioner, Scrum Master,
ITIL), Developer (PHP, C#, JAVA)
MSc International Marketing, Highest School of
Management, Russia Engineering Degree in Computer Science, Vistula
University, Poland
15Thank you!
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