Insight
Gig platforms outsource embedded credit to avoid debt bondage reputational risk
“At the end of the day, it's still quite heavily regulated in consumer credit business, meaning the barriers for entry are quite high and you do carry underwriting and default risk, meaning that you need to have a proper treasury collection and credit risk func…”
Opinion
Mukhanov: Lower-income gig workers intentionally ignore or misunderstand interest rates
“If you look at the majority of customers in this income bracket, the level of financial sophistication is not that great. And people genuinely either do not understand interest or intentionally do not want to understand how it works.”
Insight
Early-stage fintech debt is expensive; economics work at $5M+ facility scale
“But if you actually look at it, that's the most expensive pricing you will ever pay and you pay just to do the proof of concept. Because if you actually look at the warehouse facility at the good size, call it five million plus, you're probably looking at high…”
Assertion Supported
Half the global workforce lacks a fixed paycheck, claims Mukhanov
“So effectively what's tackling is that about 50% of workforce globally do not have fixed paycheck, meaning that some months, weeks or fortnights they earn above average.”
Assertion Not checkable as stated
SteadyPay hit breakeven profitability upon reaching $1M in annual recurring revenue
“And managed to do it actually in a cost efficient manner. So not only we grew to 1000 to one million annual recurring revenue, we actually broke even at that stage, which is quite exciting.”
Assertion Supported
SteadyPay's membership fee translates to a 20.8% effective annual interest rate
“So our annual interest is at 20.8%.”
Assertion Not checkable as stated
SteadyPay maintains a 3% loss rate through friendly repayment nurturing
“So actually taking approach more of being friendly, nurturing and getting customers back on track in terms of total loss, actually it's getting close to like three percent, which you're talking about.”
Disclosure
SteadyPay smooths income using a membership fee instead of interest
“So what we do, we automatically provide them the shortfall if they earn below average and they repay us when they earn above average. So effectively we convert a regular pay to a fixed salary and we do not charge interest. We just charge membership fee.”
Disclosure
SteadyPay's gig worker users average £2,000 in monthly net income
“So we're talking about 2000 pounds, call it 2.5 thousand dollars net into your bank account after taxes.”
Assertion Partly supported
SteadyPay raised £5M Series A after early equity and debt rounds
“Then at the end of 19, we raised just over one million pounds of equity and 1.5 million of debt to actually provide lending to our customers. And then we just closed couple months ago, our series A with another five million.”
Assertion Not checkable as stated
SteadyPay reached 10,000 customers by May 2022
“So currently, as of today, we have 10,000 customers on our platform.”
Assertion Not checkable as stated
SteadyPay has advanced nearly $3M in total cumulative loans
“Well, actually, if I convert into dollars, we're talking closer to three million dollars of loans advanced over that period of time.”
Disclosure
SteadyPay requires 70% expenditure visibility across bank accounts for loan approval
“So we require a couple, we require quite a lot of things on the backhand, but the most important one, we need to be connected to the account where they're getting their main income and across this account or several accounts, because we have functionality to c…”
Disclosure
SteadyPay clusters B2C users around specific employers to pitch B2B partnerships
“We use direct marketing to generate the critical mass enough to be noticeable and have those specific groups clustered around specific employers and then go directly to employers to capture the residual employment base through the partnership angle.”
Disclosure
SteadyPay acquires users for £40, generating over £200 in annual revenue
“I think the average CAC for our, across our product, let's say for the top product, we're talking at about 40 pounds CAC fully loaded versus 200 and plus pounds annual revenue.”
Disclosure
SteadyPay caps its income top-up advances at £1,000 per customer
“So we're aiming for about 1000 pounds per customer limit.”
Disclosure
SteadyPay's flagship membership costs £16 per month for income smoothing
“So membership fee depends on the tier of the product, but for our flagship product, it's four pounds per week or 16 pounds per month, give or take.”
