|1||Faster and 90% cheaper than competitors|
|2||Customer base growing 35% per month since January launch|
|3||CEO with decades of experience building technology projects in emerging markets|
|4||Fully operational and outperforming in first West African market|
|5||Long stagnant market primed for product that's easier to use and with faster service|
There are two really compelling things about Makeba — both of them rare. One is the absolutely massive space that is financial technology that is building what consumers and businesses want (in other words, you could ask 10 out of 10 people on the street and they would be underserved by their current solutions... all 10!), and then the other piece is that their entry point into this massive market is focused, novel, and already gaining excellent traction. When you combine those two things... magic can happen. Both are rare in their own right. And there is no guarantee when it comes to startups. But the combination of them creates the 100x / venture *potential* that a professional technology angel investor is constantly looking for.
We've built a financial ecosystem that combines point-of-sale payments and money transfers into a platform that is lightning fast, highly secure, and very low-cost.
While the Makeba opportunity is global, we're first targeting Africa where the demand is high and our team is experienced.
• The average cost of remittance to Africa is very high at 9.5% on average.
• Despite high fees $65 billion was sent to Africa in 2018 alone.
• The informal sector in Africa is huge, close to $1 trillion in 2016.
• 80% of transactions are still done entirely in cash, which is unsafe and unpractical for both individuals and businesses.
• Only 21% of the sub-Saharan population in Africa have a bank account.
• In regions where card payments are available, high transaction fees for businesses are prohibitive.
• Sub-Saharan Africa has an estimated 500 million low-cost smartphones today & climbing.
• Ever faster mobile networks are rapidly rolled out to meet the increase in demand.
Young and Growing
• 70% of Africa’s 1.2 billion people are under the age of 30.
• Increasingly educated and tech-savvy consumers are entering the job market.
• Africa’s economy is on an upward trend, GDP grew by 3.8% in 2018.
By cutting out the middlemen, Makeba transactions are able to move between sender and recipient instantly. Without the need for credit cards, wire transfers or cash.
Having no costly payment networks or slow third parties to deal with means we can offer a better and cheaper service to our customers.
The goal is for our customers to pay for everything in their lives with Makeba - from sending and receiving remittances to buying groceries and shopping online.
To test our technology we launched Makeba in the West African country of Cabo Verde earlier this year and we are off to a strong start.
We already have over 3,200 customers and our month-to-month customer growth is 35% despite a Corona lockdown.
We’ve had great feedback from businesses and from the government in Cape Verde. For instance, we have recently partnered with the Post Office to deliver pension payments using Makeba.
Together with our local bank partner Banco BAI we are currently offering our customers:
• mobile payments
• domestic money transfers
• airtime purchases
• payment of government taxes
• pension deposits
We want to grab a share of the remittances market going to and within Africa, collecting a fee on every transfer. At the same time, we want to gain a share of in-person and online point-of-sale payments in Africa; collecting a transaction fee for every payment.
With remittances and payments as our foundation, we aim to create additional sources of revenue by adding to our financial services offering.
In the first year of operation we expect our sources of income to be:
We aim to establish a reliable flow of revenue by encouraging our customers to subscribe to our monthly plans that lower their per-transaction fees.
We're creating a complete financial ecosystem where our customers pay for everything in their lives with Makeba.
The cornerstones of our platform are three tightly integrated products:
Our Product: Makeba Money App
Lets customers send money instantly to other Makeba users.
Secure payments in stores and online without Credit Cards.
Customers can chat securely to friends and family as well as request and attach money.
Allows customers withdraw and deposit cash at partner banks and at local businesses who are using Makeba Merchant.
Bill Pay & Airtime
Customers can buy airtime directly from the app as well as pay bills from Makeba Merchants, and more.
There is no monthly fees for Makeba although customers can select a monthly plan to further lower their remittance fees. It’s always free to receive money, chat and make payments.
Our Product: Makeba Merchant App
Point of Sale
Makeba Merchant is a free POS app for accepting payments from Makeba Money customers.
Merchants can track their employees sales in real time and set customized permissions for each employee.
Fast & Secure
Unlike with credit cards there are no unexpected chargebacks, and payments are deposited in full instantly.
There are no set-up cost, monthly minimums and no subscription fees - although customers can select a monthly plan to further lower their transaction fees.
Our Product: Makeba Payment SDK
We are currently in the testing phase of our Payment SDK which will allow third party apps and websites to accept Makeba as a form of payment.
The SDK can be adapted by any approved third party providers that connects to the internet - ranging from e-commerce websites to in person payment kiosks and more.
Security Is Our Top Priority
With Makeba, fraudulent charges are near impossible as each payment requires the user’s explicit approval to be processed. Unlike credit cards, Makeba transactions can’t be made without the customer agreeing to it.
Also, all our customers must pass through the same KYC process, so we know who is behind each transaction and can better monitor each account for suspicious activity.
All our customer deposits are held by our bank partners in insured bank accounts that follow the same regulation and security protocols as normal bank accounts do.
In times of Corona virus Makeba's touch-less payments are also a benefit to personal health and safety.
Our immediate goal is to raise $700,000 in funding with WeFunder to help us launch in the US and Senegal by the end of 2020
Through the bank partnerships we have in place, we aim to quickly launch in 14 additional West African countries and EU regions with an African diaspora.
Looking further ahead, our long term objective is to have 9 million subscribers and $ 1 billion in revenue by 2025.
We have a robust customer acquisition strategy:
Leveraging our Merchant Network
We will focus on first building a strong network of merchants that accept Makeba through regional sales teams, social media campaigns and referral programs.
Strong Referral Program
We have a generous incentivized referral program for merchants and individuals who refer new subscribers to Makeba.
Partnerships with local diasporas to gain exposure and turn users into brand ambassadors.
To promote referral program & downloads
Social Media & Advertising
Educate and expose the audience to the Makeba services. Reinforce the emotional connection to financial inclusion and empowerment.
Efforts will be targeted through ads on social media channels like Facebook, Twitter, and Instagram.
Influencer Marketing and PR Buzz
Build relationships with individuals who have influence with our target groups. Consistently pitching local and diaspora press outlets to cover Makeba stories.
The market is ready:
By creating a low-cost and easy to use financial platform we can give more people and economies a chance to develop and grow stronger. It’s time to bring millions of people into the modern economy.
Makeba has financial statements ending December 31 2019. Our cash in hand is $185,000, as of May 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $100,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Makeba is a new financial network that combines money transfers and payments into a digital ecosystem that is highly secure, lightning-fast, and very low-cost.
Customers and businesses transact securely and instantly without cash or credit cards using only their smartphones.
While the opportunity is global, Makeba is first targeting Africa where the demand is high and our team is experienced.
In 5 years we hope to be operational in all African countries as well as countries with sizable African diasporas, primarily western-Europe and the US.
Our objective (which cannot be guaranteed) is to secure 9 million subscribers and $1 billion in revenue by 2025 .
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Makeba, Inc was incorporated in the State of Delaware in May 2016.
Since then, we have:
Historical Results of Operations
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $600,000 in debt, $1,950,000 in equity, and $50,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 1 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 3 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Makeba, Inc cash in hand is $185,000, as of May 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $100,000/month, for an average burn rate of $100,000 per month. Our intent is to be profitable in 18 months.
On January 2020, Makeba acquired Fintech Africa, the development company that has developed all technology to date.
Revenue in 3 Months - $0 per month
Revenue in 6 Months - $12,651 per month
Expenses in 3 Months - $289,725 per month
Expenses in 6 Months - $ 385,475 per month
Yes. Capital Injections by Founder, Additional Funding from Friends, Family, and Previous Investors
Regulatory changes that impact our business model: Financial services are subject to frequent regulatory revisions and the timely implementation of new rules and compliance provisions is a risk.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Regulatory changes that affect our banking partners: Our bank partner agreements are contingent on compliance to regulation and any change to the banking regulation related to bank partnerships with services, like Makeba, could cause unexpected costs to development or a pause on a market.
Significant price drop by competitors: At this time, Makeba's value proposition is unique in the market and provides a very affordable alternative to existing players. There is a risk that Makeba's traction may cause competitors to drop pricing to gain back their customer base.
Our financial projections are based on forecasts that assume specific growth patterns. There is a risk adoption as the application and marketing initiatives are rolled out, adoption may be lower and growth targets may not be met.
This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief. [Rule 201(z)(1)(i)]
COVID-19 has delayed merchant acquisition because of mandates to close down businesses, and it may continue to have material impacts on our business.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
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