The ʞuɐq un - Limited - The Africa's Virtual Bank unlimited - HKTDC Belt and Road Portal
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The ʞuɐq un - Limited
The Africa’s Virtual Bank unlimited
The African super APP; The Africa Virtual Bank App, Africa's Neo Bank App, Africa's Digital bank App
www.kueq.co.ke
2
▪ Banking as a Service
▪ Overview
▪ The Board of Directors
▪ The Key Management Team
▪ Executives Profiles
▪ Events Schedule Over View
Group Profile
▪ Product Gallery
▪ Product Stack
DEEP DIVE
▪ Distinctive & Differentiated
Value Proposition
▪ Customer Acquisition
Our Mission & About Us. ▪ Customer Feedback
▪ Financial Sector Competitive
Landscape
▪ Neo Banks Global Analysis
▪ SWOT Analysis
▪ Financials
▪ Funding & Valuation
▪ The Ask
The Kueq Limited www.kueq.co.ke
Group Profile 3
Our Africa
Banking as aMission
Service
Our Africa Mission
World Class Africa’s
Virtual bank
Create a virtual financial Inclusion intermediation
platform that helps unbanked, underbanked &
underserved individual African & African SME
businesses in value chains actualize their full
financial potential & facilitating their goals.
Solution offered; Credit, insurance, FX, payments & remittances, savings & personal financial management for both individuals & SME businesses as well as digital
crowd funding on the app from equity investors over IT infrastructure addressing special challenges of the underserved, underbanked, unbanked customer segments.
The Kueq Limited www.kueq.co.ke
Group Profile
Overview 4
Business Overview
Total Funding: $200k
Found: 2018 Headquarters: Nairobi
Type of Funding: Pre-Seed round
Founders: Aristarichus Kuria Weru Geographies: Kenya,
Target Funding: $2.5M
Joel Njogu Weru Uganda
Type of Funding: Seed round
Arnold Kizzitoh Nogo Served: Kenya
Valuation: $5M
Derrick Otieno Omondi Licensing: Kenya
Investors: IKNAB
Kelvin Wangui Njau 1. CBK - Central Bank of Kenya, MFB, NPS); Licence applied
Kevin Muhuhe Gitonga 2. IRA – (Insurance regulatory Authority): Issued
Fred Barongo Nyatemu 3. CMA- (Capital Market Authority); Sandbox application filed
Kevin Kiplimo Bwaley Customer base: 1000 concept validation in Feb 2020
Fernandes Muruthi Thuita
CEO: Aristarichus Kuria Weru Employees: 12 as of 1st, September 2020
CTO: Arnold Kizzitoh Nogo
CP&PO: Derrick Otieno Omondi
Partnerships
Wallet payments Cross Boarder Payments Bill payments FX Card Schemes Insurance
Local Banks Interswitch Kenya KPLC FX ONLINE VISA Jubilee Insurance
Telcos; IPRS WATER MASTERCARD APA Insurance
Safaricom SWIFT ZUKU ICEA Lion
Airtel DSTV Heritage Insurance
T-kash AIG Insurance
The Kueq Limited www.kueq.co.ke
Group Profile 5
The Board of Directors
Mr. Kiplimo has over 11 years
She is commercial leader with over Mr. Kuria is a Career banker & has 15 banking, finance, private wealth and
12 years B2B and B2C experience in years experience in Banking & investment banking, fund raising
brand, products and innovation as financial services. He is actively experience coupled with
well as sales and operational involved in strategic direction of The outstanding performance record in:
excellence in ICT, Telecomms and Kueq Limited. His last engagement leading & managing teams,
Financial Service was with Stanbic Bank of Kenya & portfolio and relationship
has worked for Standard Chartered management, managing high net
She has a vertical on Credit Scoring, bank, Equity bank & Barclays Bank in worth individuals, stakeholder
Product Pricing and Product Kenya. management, growing balance
Gladwell Chege Development expert, with a proven Kevin Kiplimo sheets & managing P&L, strategy
Aristarichus Kuria
Chair – Lady record of accomplishment in Principal founder & seed Investor Non- Executive Director development and risk management,
Founder, CEO
& projects, strategies and programs for UbaPesa P2P lending & Borrowing project management & partnerships.
&
Non- Executive Director financial services and performance Executive Director platform.
management.
Board of advisors in place
Mr. Masaki has over 15 years Mr. Njogu has over 10 years’ experience in
commercial business development the legal fraternity. He has a successful
experience across the African track record in Commercial law, business In fact, leaders of companies that go
continent. law & conveyancing. from good to great start not with
“where” but with “who.” They start by
His current role serves the African He is an advocate of the high court of
market and he supports European Kenya and has practiced on his own for the getting the right people on the bus, the
and African businesses grow their last 5 years. His prior engagements were wrong people off the bus, and the right
footprint and business across Africa. Joel Njogu with KenAfric Industries as their inhouse
Mackenzie Masaki
Chief Business Chief Legal Officer, lead counsel, BAT Kenya and various other people in the right seats. And they stick
Development Officer, Co-founder firms. with that discipline—first the people,
&
then the direction—no matter how dire
Co-founder
& Executive Director
Executive Director the circumstances. –Jim Collins
Board Committees
Strategy & Innovation Committee; Risk & Governance Committee; Human capital Committee; Products & operation Committee; Investors & Finance Committee
The Kueq Limited www.kueq.co.ke
Group Profile 6
The key Management Team
Mr. Kizzitoh has over Product Mr. Kizzitoh has over 7 years Software
Mr. Kuria is a Career banker & has 15
manager with 4 years working Engineering experience across the
years experience in Banking &
experience in product ideation, African continent.
financial services. He is actively
involved in strategic direction of The strategy, and development. Proven
ability to get things done, with great Software Engineer, programming
Kueq Limited. His last engagement
team leadership and very detail mostly in Java. I am a fan of
was with Stanbic Bank of Kenya &
oriented. Excellent communicator, Microservices Architecture and
has worked for Standard Chartered
with proven problem solving skills. Functional Programming. Exploring
bank, Equity bank & Barclays Bank in
Big data tools such as Apache Spark
Kenya. Arnold Kizzitoh Nogo and Hadoop. Additionally, I also
Aristarichus Kuria Weru
Derrick Omondi Otieno Product Manager with a passion for
Chief Product, processes Chief Technology Officer develop smart contracts
Founder & CEO Principal founder & seed Investor Fintech and experience in Agile, and
&
Officer
user-centered development of with Hyperledger, Ethereum and
UbaPesa P2P lending & Borrowing & Co-founder
awesome products. Stellar(Blockchain)
platform. Co-founder
Mr. Njau is a Qualified information
technology & software Engineer, He Mr. Gitonga has over 5 years experience
has over 5 year of Mobile mobile APP development
applications development and
banking system coding. Skilled programmer with experience in
Nyatemu Design House;
Native Android application development,
Co-founder
He works for NLS software. He has Rest Api's, UI/UX design, Cloud
developed numerous software & Server Technologies and implementation.
A design consulting house for all design Savile raw
done many financial software Deployed App products with over 300K
suits articulations.
Kelvin Wangui Njau integrations.
Kevin Muhuhe Gitonga downloads to Google Play Store.
Lead Front End Engineer
Chief Data Scientist,
Credit evaluation Officer
&
Co-founder
In addition to the board above & with an established office at FCB Mihrab Building at the junction of Ring road Kilimani & Lenana RD, The Kueq Limited will have 9 employees, the CEO, a
Chief Data Scientist & Credit Evaluation Officer, a Chief Project & product Officer, a Chief technology Officer, one front end developers, one back end developers, an inbound & outbound
credit management call centre with 2 agents and an digital marketing consultant. Key staff are hired with gender equality in mind.
The Kueq Limited www.kueq.co.ke
Group Profile
Executives Profiles
We have been building a team experienced set of founders, all diverging from traditional banks, FinTech, Creative design & IT While the executive team has only 2 female members, 45% of the total employees are women.
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Person Position Previous Startup Company before The Kueq unLTD
experience founded
Aristarichus Kuria weru Founder & CEO 20 years – 3 Ubapesa LTD, Stanbic Bank Kenya, Standard Chartered Bank Kenya, Equity Bank, Barclays Bank, National Bank of Kenya,
Banking &
FinTech NeoFinTPrenuer
FinTech;
A future ready without the box thinker - upending the status quo and replacing it with something new, bigger, bolder unPerfect & unImagined
synoptic connections.
Banking;
A great leader in corporate & investment Banking, Business Banking, Wealth & Personal markets; providing value to relationships, corporate trade
& working capital deals structuring, commercial clients, Small and Medium Enterprises (SME) business development, financial management and
structured financing; Business planning and strategy development, financial statement financial extraction and analysis.
Arnold Kizzitoh Nogo Co-Founder, Chief 7 years – FinTech 2 Purple fire, SBS Africa, River Bank LTD, Data Intergrated LTD, Squad Digital
Technology
Officer & Lead Software Engineer, programming mostly in Java. I am a fan of Microservices Architecture and Functional Programming. Exploring Big data tools
Back-End Engineer such as Apache Spark and Hadoop. Additionally, I also develop smart contracts with Hyperledger, Ethereum and Stellar(Blockchain)
Derrick Otieno Omondi Co-Founder & 5 years – FinTech 1 AZA Finance, Abacus Finance, Lipa Plus
Chief Prodcut &
process Officer Product Manager with a passion for Fintech and experience in Agile, and user-centered development of awesome products.
Kelvin Wangui Njau Co-Founder & 6 years – FinTech 2 Cosmetic Florist, Nangalkshmi Banking Systems, Freelance engineer, Kenya Commercial Bank, NIC Bank.
Chief Data
Scientist & I’m an ICT professional in the industry specializing in Fintech systems with a passion in system design, integration and development.
Evaluation Officer
Kevin Muhuhe Gitonga Co-Founder & 4 years – FinTech 2 Prime Soft solutions, Think Synergy Limited, Freelance, Purple fire LTD
Lead Front-End
Engineer Skilled programmer with experience in Native Android application development, Rest Api's, UI/UX design, Cloud Server Technologies and
implementation. Deployed App products with over 300K downloads to Google Play Store.
Fernandes Muruthi Thuita Co-Founder & 5 years – 2 WPP-Scangroup, Purple Fire, Julla, Andela, MasterCard
Chief Front end Creative &
Officer FinTech I am an experienced software engineer with great focus on building maintainable, highly available and scalable mobile solutions both on Android
and iOS platforms.
Over the years, I have also developed backend skills using technologies such as NodeJS and Java.
Overall, I am deeply passionate about building impactful, self sustaining solutions that are aimed at elevating human experiences.
Fredrick Nyatemu Barongo Co-Founder & 8 years – 0 Milestone Image makers, Pink Foot Consult, Jamii Bora Bank
Chief Creative Banking,
Officer Marketing & Born a Fine Artist, Graphic Design by profession and photography by passion. My imagination has always been an incredible driving force in my
Creative Design life, and has done and still does have influence on almost everything I do. I have always enjoyed art from early age of me drawing cars and
wrestling stars like The Rock and comics. 1 and half experience in the industry of Design it has been and will always be a learning experience and
discovering new styles and techniques in creative world.
The Kueq Limited www.kueq.co.ke
Project Details 8
Event Schedule Overview
$200,000 investment by co-founders $2.5M series A strategic investors $6.5M series B
commitments
Feb 20 – Sep 20
Africa expansion
Business model
1st February 2020 beta Super APP launched Consolidation.
Other Pdts launch. Further
technical development. Algorithm
Jan 19 - Feb 20
enhancements & finetuning. Hire
of additional data scientist,
developers, marketing, trainings
and exposures.
Equity sale, Series A funding, Launch
office set up & Marketing
$2.5M=Kes 250M deal; Equity injection and Senior debt for working
Nov18 - Dec18 Capital & CAPEX.
Launch backed by below the line & minimum above the line
marketing strategies.
Piloting & testing;
Finalize on the mobile app development
Early stage funding & Seed fund raising
April 18 – Oct 2018 Tested the app with a larger test group.
Research, Proof of Concept & Product Development
Competition analysis, market research, proof of concept, product development & product redesign.
The Kueq Limited www.kueq.co.ke
The VB APP Product screens Gallery
Project Details
9
Main screen Flash passport photo ID capture KYC details Repeat login
Money i-FX i-Insure i-Share i-Card Statements
marketplace marketplace marketplace marketplace
The Kueq Limited www.kueq.co.ke
Group Profile
Product stack
TheKuequnLTD has built all its product capabilities from scratch & is committed to building 60+ digital banking products in the near future for both personal & SMEs
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▪ Automated & manual lending & borrowing app providing a platform for Individual funders to loan to individual borrowers for 1 day, 5 Days, 10
Days & 20 Days that its pricing is credit risk score bands based as well as market (demand & supply) driven.
▪ Buy & Sell the world major currencies : FX trading (USD/KES, EUR/KES, GBP/KES)
▪ Get a physical or virtual multi-currency prepaid card, credit card and debit card, to be able to cash out the multi-currencies while traveling or to
facilitate your online shopping.
▪ Make RTGS & international TT using SWIFT & Pesa linked – local payment gateway
▪ Pay for water, electricity, cable, Zuku, DSTV bills. Buy goods and services via Mpesa
▪ Buy Airtime; Safaricom, Airtel & Orange
▪ Open a joint account
▪ Set saving goals to buys a car, a TV, a house etc
▪ Buy insurance covers both life & general insurance covers et al. from an insurance market place
▪ Buy government treasury bond and treasury bills.
▪ Crowd funding of it’s own shares, (Buy shares of The kueq limited on it’s own app. The next level crowd funding) based on real time
company performance information e.g toplines, PAT, EBITDA, D/E, EPS, DPS, statutory ratios; cash ratios, core capital,
▪ Business accounts, Bid bond & invoice discounting Joint A/C Joint A/C
Virtual Card Virtual Card Virtual Card Virtual Card
Remittance Remittance Remittance Remittance
Airtime sale Airtime sale Airtime sale Airtime sale Airtime sale
FX FX FX FX FX
Bill payments Bill payments Bill payments Bill payments Bill payments Bill payments Bill payments
Insurance Insurance Insurance Insurance Insurance Insurance Insurance
Saving goal Saving goal Saving goal Saving goal Saving goal Saving goal Saving goal Saving goal
Loans Loans Loans Loans Loans Loans Loans Loans Loans
01-2020 05-2020 10-2020 11-2020 12-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021
The Kueq Limited www.kueq.co.keThe kueq unLimited 11
Distinctive & differentiated value proposition
Virtual bank Intellectual properties Customer acquisition
Digital Value proposition consolidation Machine learning & artificial intelligence No brick or no mortar
The offering consolidates; Deep data analytics, kueq credit scoring & Online customer acquisition hence
lend & borrow, FX, Cards, Bill payment, risk based pricing, eKYC OCR & MRZ borderless, reduced costs, convenient
insurance, Government instruments, technologies, eSunctions, facial recognition, offerings on the smart phones, lean
payments & collection, insurance, crowd biometrics, quantum algorithm, team
funding, business account, invoice
discounting
Bespoke offering Partnerships ROE & ROI
Market driven; demand/supply open source banking Accelerated returns
Tenor & pricing match funding; Lending 1%pm e.g FinTechs, mortgage companies; e.g Hass coupled with high smart phone
FX at inter-banks rates, convenience for TBs, bonds consult & Knight Frank, VAF; e.g Toyota & VW, adoption and acceptance of mobile
& insurance offerings, buy back option on retail; e.g Carrefour & Naivas, telecoms; e.g money provide a low risk high return
crowdfunding, TBs & bonds, Safaricom, & Airtel, electronic companies e.g opportunity
The Kueq LimitedCards transaction fee atGroup Profile
Customer acquisition 12
TheKuequnLTD has a digital native approach to acquire customers through social media. The Kueq’s primary customer base growth
is driven by organic referrals, the FinTech will shifted gears to paid marketing-driven growth from 2021 with TV ad campaigns and more.
The Kueq unLTD aims to build customer
stickiness by onboarding more people from The Kueq unLTD aims to target
users’ social circles on the platform customer between the age of 18-55
years
Average # of friends on TheKuequnLTD per customer Average age of customers in TheKuequnLTD
2020 2021 2022 18-29 30-39 40-49 50-59 Marketing spend to grow
by 600% in Q2 - 2021,
compared to Q1 2020
0 5 10 30% 40% 20% 10%
3500
Growth spurt from 3000
3000 TV ad campaign
2500
User base growth will
primarily be attributed to 2000
2000
user referrals up to Q2-2021
1500
Launch of the
supper APP with 1000
1000
2k customers 750
500
400
200
0
Q4 -2020 Q1 - 2021 Q2 - 2021 Q3 - 2021 Q4 - 2021 Q2- 2021
The Kueq Limited www.kueq.co.keGroup Profile
The Kueqest Customer feedback
13
Online forum Events Social media
▪ TheKuequnLTD Squad ▪ Banking as a serice
▪ Active feedback in
on FB with more than
product
▪ Country-wide 13,000 members ▪ Open banking APIs
development
▪ Open Hackathons community
meetups ▪ @TheKuequnLTD ▪ Open source
▪ Ideas for new
Twitter updates on integrations
products and
▪ Open Office days backend
features
@ Kueq HQ developments ▪ Omini-channel
▪ The Coral Crew –
most active
▪ Educational ▪ Viral social media
community
seminars, campaigns
members that act
product launches #TheKueqest
as community
and more #RealKueq
leaders
▪ #Kueq
▪ #kueqer
The Kueq Limited ▪ #kueqest
www.kueq.co.keFinancial sector Competitive Landscape 14
The closes to a virtual bank
▪ 0 Virtual Bank ▪ 1 Security exchange custodians/depositories ▪ 52 insurance companies
▪ CBA Loop by CBA Bank & BBK Timiza APPs are the closest
▪ 42 banks ▪ 1 central depositories ▪ 8 Reit managers ▪ 4 reinsurance companies
product to a virtual bank.
▪ 1 mortgage institution ▪ 14 investment banks ▪ 14 ESOPS ▪ 221 insurance brokers
▪ KBC Mpesa is a SDK solution.
▪ 3 CRBs ▪ 10 stock brokers ▪ 14,000+ savings & credit ▪ 11 reinsurance brokers
▪ Ubapesa, Pezesha & Pesa pata are P2P APPs
▪ 70 FX bureaus ▪ 14 investment advisors ▪ 5 mobile money providers ▪ 9,348 insurance agents
▪ 19 money remittance ▪ 26 fund managers ▪ 3+ P2P APPS
providers ▪ 23 collective investment ▪ 100+ lending APPs
▪ 14 Micro finance schemes ▪ Numerous merry go
banks(MFB) ▪ 14 authorized rounds
Microfinance Banks in Kenya
There are a number of micro finance banks
in Kenya some of whom have mobile
banking facilities but none is a virtual bank.
In 2018, only 3 MFBs were profitable out of
13 due to huge Admin, Staff, depre, &
rental costs; Faulu, Sumac and U&I, KWFT 29th Nov 2019
was profitable in 2017, 14th licensed in 2019
Mobile money transfer Services, Kenya
There are 3 out of 5 main mobile money
transfer (MMT) service providers in Kenya.
Most fintechs and or banks have linked their
services and products in one way or another
to these MMT systems
Lending Apps.
The are +150 lending apps in Kenya
95% of the lending Apps were profitable,
post Covid -19, 95% are struggling. A good
indicor that those APPs should have
diversified to other none interest lines like
paybills, insurance, savings FX, remittances
etc.
Neo, Challenger & Virtual Banks
The are a number of Neo, Challenger
Virtual banks most of which were opened in
the last 5 years that are thriving in view of
the ease and convenience they provide.
The Kueq Limited www.kueq.co.keProject Details 15
Neo Banks Global Analysis
The Kueq Limited www.kueq.co.keProject Details 16
SWOT Analysis
Strengths Weaknesses
- Make banking easily - Liquidity risk; Lack of
accessible to all. sufficient funds to expand
S W
- Leverage on net interest in other African markets
income & none interest - Appropriate specialized
income resources e.g Data scientist,
- Leverage on both banking actuarial scientist &
& fintech technologies portfolio risk managers
- CRB real time submission - Robust systems for
API integration integrations
O T
- Artificial intelligence, block
chain & Full financial
spectrum intermediation
Threats
Opportunities - Macro Economic changes
- Expansion of - Credit risk; Heavy defaults
economies in Africa on the lending
- Growth in income - Operation risk;
per capita Competition
- Growth in - Cyber crime risk; Changes
purchasing power in technology
- Lack of regulation or
change in Government
The Kueq Limited www.kueq.co.ke policiesMarket Entry Strategy | P&L Profitability within 12 months; Y1 - >25+% RoE, >35% liquidity ratio, >10%+ RoA, >Kes 250M core capital,
Group Profile
Funding & Valuation 18
The Kueq unLTD’s valuation from $5M in Q1- 2020 to $1bn in Q1 - 2022 based on customer acquisition, product offering and market presence
12000 Launch in at least
10 African
Markets 3,000,000
10000
10000
Launch in at least
Launch in two 5 African Markets
8000 East African Q4 - 2021; 2,000,000
Markets 7000
6000
1,000,000 5000 5000
750,000
4000 400,000
Q4 -2020; 200,000
2400
Launch in Kenya 2000 2000
2000
1000 1000 1200
500 500 500
135 100 270 250
20
0
Q4-2020; SEED Q1-2021; SERIES A Q2-2021; SERRIES B Q3-2021; SERIES C Q4-2021; SERIES D Q1-2022; SERIES E
Total Funding kes (000,000) valution per 1$ raised Kes (000) valuaion Kes (000) Customers(000)
The Kueq Limited www.kueq.co.keFinancials 19
The Ask
$2.50M;KES 250M AS THE KEY ASK
post- launch, post revenue
Utilization of funds:
• Initial series A raise of $2.50M;Kes 250M as
equity, grant and debt or mezzanine debt to
be used as 70% working capital.
• Regulation, policies & Legislature compliance I at least 3 markets; Kenya, Uganda,
& Zambia or Botswana. CBK- MFB licence, CMA – Online FX and crowd funding &
IRA – insurance agency approvals granted
• CAPEX & working capital cycle of the business.
• Further technical development of the application. Algorithm enhancements.
Hire of data scientist, developers, marketing, trainings and exposures
For 51% Equity
•
• Research & development
Guarantee for default; investors safe net. Cash cover funds in case of run on lenders
share
•
funds
• Economic benefit integration e.g. education, health, trade business benefit
• Consolidate partnership agreements
• Equity exit plan being the crowd funding on the APP, sale of shares of the APP in
The Kueq Limited the APP or IPO or exit to PE, VC or gen new shareholders or a combination of all.
www.kueq.co.ke20
CONTACTS
Contact person: Aristarichus kuria weru
Founder & CEO
Contact Email: aristarichus.kuria@kueq.co.ke
Location: FCB Mihrab Building Mezzanine 2;4
Cell: +254 721 383 123
General Email: info@kueq.co.ke
Thank Contact Email: aristarichus.kuria@kueq.co.ke
website: www.kueq.co.ke
You
LinkedIn: https://www.linkedin.com/company/the-kueq-limited
Facebook: https://m.facebook.com/TheKuequnLimited/
Twitter: https://twitter.com/KuequnLimited
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