Wisr Limited (ASX: WZR) (ACN 004 661 205) (“Wisr”, or the “Company”) is pleased to announce today it has executed a term sheet to invest, via a convertible loan structure, in European financial wellness fintech platform, Arbor.
If converted, the investment will give Wisr a small minority shareholding in Arbor, with a pathway to potentially increase the shareholding to 45% over the next 36 months. Any additional investment is at Wisr’s option, subject to future valuation thresholds and contingent on various milestones being achieved. The investment remains subject to finalisation of due diligence and legal documentation which is anticipated by the end of April 2021.
Highlights of deal:
● Strategic investment by Wisr opens up entry pathway to circa $1.76 Trillion (AUD) consumer finance market1 in EU
● Low-risk investment structure - modest upfront consideration with options to increase shareholding to 45% at Wisr’s election as the model is proven out across the EU
● Arbor is an EU based fintech with a financial wellness platform, utilising a digital wallet to offer savings, investment and lending features to almost 100,000 customers, and is growing its user base circa 20% month-on-month
● Arbor’s revenue streams include a customer subscription-based model for its platform, as well as lending revenue via a recently launched “ethical loan” product
● Wisr and Arbor will share IP across both organisations, with Wisr assisting in delivering an ethical lending experience to Arbor’s customers through Arbor’s proprietary financial wellness platform
● Wisr’s upfront consideration is circa $400,000 cash, with any follow-on investment subject to milestones being achieved by Arbor, and can be settled through a combination of cash and shares at Wisr’s discretion
Founded in 2017 and backed by leading venture capital firms FinRebel Group (New York), Tifin Capital Partners (New York) and Apex Capital Partners (Sydney), Arbor has accumulated almost 100,000 customers in the EU market and is rapidly scaling with a 20% month-on-month growth rate and a robust retention track record. Similar to the Wisr Platform, Arbor has built a holistic personal finance platform with a complimentary suite of products that help to improve customer’s financial wellness. Arbor’s current offerings include a digital wallet delivering savings, investment, debt repayment features and a recently launched “ethical loan” product.