What a day it’s been.
Huge thanks to everyone who has invested so far – we’re absolutely thrilled by the number of people who have bought into our vision of a world where all currencies are equal.
At the time of writing, our crowdfunding campaign has hit an unprecedented £1,730,978 - and it’s still climbing! Don’t worry – if you haven’t got involved yet, you can still invest in Wirex through Crowdcube. It only takes a few minutes and represents an unmissable opportunity to invest in a payments fintech like no other.
Our original target for the campaign was an ambitious £1,000,000. Now we’ve smashed that, we are officially ‘overfunded’. Overfunding sounds like a bad thing, but what it actually means is that we’ve chosen to continue releasing equity in return for further investment after achieving our stated target. That’s all there is to it – your rights as an investor remain exactly the same as if you’d got involved earlier.
“But what about Equity dilution?” I hear you cry.
Despair not. The equity-per-share is set, which means that the total equity released will increase if we continue beyond our initial target. So there will be no dilution of share value, even as we cruise confidently into overfunding. Just one more great reason to invest now!
Here are three more questions we’ve been asked regularly over the last 24 hours:
How can Wirex achieve a £300m revenue over 12 months when transaction volume over the last 5 years has exceeded £3bn?
Our scalable, diversified business model and unit economics is one of the key competitive advantages of Wirex compared to other Fintechs, and comes from four main areas:
Card scheme revenue (Visa/Mastercard): mainly interchange and ATM fees
Exchange fees: we support 22 currencies (fiat and cryptocurrency) and generate revenue when clients convert one currency to another
Membership fees: we generate additional revenue when customers use WXT membership benefits
Blockchain fee: Wirex adds a tiny markup on blockchain fees, so every cryptocurrency payment is a revenue generator for us
We also have direct relationships with OTC traders and FX brokers, giving us access to the best possible rates. This means that, even with our markup, they are among the most competitive on the market.
Many challenger banks generate most of their revenue from interchange fees, but, in our case, we have 4 diversified revenue streams.
I also suggest you check slide 15 of the investor deck (our Valuation), where we go into our unit economics in more detail. As you can see there, we’ve built a profitable business model from day one, allowing us to monetise and grow at the same time. We strongly believe that Fintechs can be sustainable and can bring value not just for their clients, but for shareholders as well!
What is Wirex’s exit strategy?
Wirex is growing strongly and we are laying the ground work to enter the US market. If the reception there is as good as Europe has been, then we will require more capital than this raise will achieve. So we are actively looking at the public market as a funding strategy both in London and the US. In the US, we are looking at an IPO or possibly using a Special Purpose Acquisition Company (SPAC) as our entry vehicle. An event like this is most likely to occur in 2021.
Where can I find detailed revenue information about Wirex?
As a limited company, our details are all on Companies House - including our latest audited accounts for 18/19. Any additional information that we’ve been approved to share by compliance teams at both Crowdcube and internally can be found in our Investor Deck. This provides a breakdown on our revenue streams and product positioning, as well as topline financials. It’s definitely worth a read.
For more information about our crowdfunding campaign (everything from ‘why?’ to the unbeatable benefits investing gets you), check out our dedicated Community post, or browse our Investor Deck. If you have any questions about the crowdfunding campaign, don’t hesitate to check out the Crowdcube Help Centre.
And, if you haven’t invested yet…what are you waiting for? Do it now!
Investments of this nature carries risk to your capital. Please invest aware.