Multi Cash

Opening banking to underserved markets

 CREATING A NEO BANK FOR EMERGING MARKETS
Pakistan has all the ingredients to be the flagship market

• 5th most populous country in the world with

population over 230 million
• 70% of the population is under the age of 40
• 86 million smartphone users with 4G connectivity
• 77% of the population is unbanked
• Country with 10th highest number of internet users in
the world (penetration over 60%)
• Significant reforms in ease of doing business
recently (33 places improvement in the last ranking)
OPPORTUNITY - Driving forces
To make banking accessible to underbanked and growing population of Pakistan first, eventually the Middle East, Central Asia
and other developing parts of the world with full scope of financial products

10 million Pakistani expats remitting Pakistani banking sector is a $120 billion

market ripe for disruption
$22 billion per annum
The latest fintech legislation and Covid19 will
(up to 3x more through unofficial channels) certainly trigger and accelerate fintech
adaption

World Bank sees Pakistan digital finance potential at $36 billion

Opportunity Market changes HEXA positioning

o Banking with traditional banks is o New legislation o Early mover advantage

expensive, inefficient and o Smart phone with internet in almost o Scalable across multiplatform and
inconvenient everyone's hand in adjacent domains
o Lack of infrastructure for online, o Need for contactless payment o Lower cost address target
mobile and international payments o Push by government for customer needs
o Capturing loyal userbase has huge digitalization of the economy o Contactless mobile payments
revenue potential product with excellent UX
PROBLEMS - Status quo

Traditional banks have not

moved to the digital age

Credit facility not available to Lack of uncomplicated

average person medium for international
(Only 1.4 million credit cards issued) payments and transfers

Poor customer service with Inefficient Cash on Delivery method

average wait times of c. 15 minutes is being used as current mode of
at both physical branches and payment for ecommerce due to lack
phone helplines of online payment infrastructure

Everyday banking is inconvenient with Banks charge high fees

heavy involvement of traditional paperwork ($20-$120 per annum) to retail banking
and mediums such as cheques customers
THE PRODUCT - Your wallet, now just a tap away
HEXA mobile wallet satisfies the demand of consumers for a simple, instant and transparent mobile banking experience

Starting with a mobile wallet app linked to a debit card

Easy and instant signup in 5 minutes

No bank fees for limited usage

Up to 3 free cash withdrawals per month

Payment systems for organizations & Infra projects

Hassle-free online payments and interbank transfers

Instant b2b & b2p and p2p payments

Monitor your spending from the app

PRODUCT ROAD MAP

EMI License Mobile recharge and Bill

HEXA Multi-currency
Approval + Pilot Product Launch payments services
Wallet for Freelancers
& Testing Integrations
Alpha app + (At Pilot Testing)
Infrastructure

Overdraft Facility for

Merchant POS Offline and Remittance Product
Full EMI Commercial Salaried Customers +
Online Payments Solution
License + Public Launch cross selling products for + International Expansion
(HEXA pay)
premium users
BUSINESS MODEL
Freemium model with viral features (referral and signup bonus)

Revenue Model Target customer

o Paid tiers *subscription fees for higher limit Premium ($5 o Market: Every Pakistani with a national ID card and a
per month) & Premium plus ($10 per month) accounts smartphone with access to internet

o Charge flat exchange rate fees of 1.5% on international o HEXA’s Cost: Creating customer awareness + the debit
transactions and currency conversions card

o Interchange rate (50 BPS) , bank withdrawal (1%) and

ATM withdrawal fees after the limit
Selling Points Client Acquisition Delivery
o Interest on deposits in the partner bank (7%-12%)
o Saves money o Press and PR o Signup in
and saves time o Incentivize influencers the app
o Commission from utility providers and operators (1%)
o Easy to use and create a hype o Leverage modern
o Instant online o Online and offline tech branding
and P2P marketing channels o Debit card
payments delivered in 2 days
o Overdraft fees and cross selling financial and insurance products

o Transaction fees on online payment solutions (1.99%)

o Multiple revenue streams from marketplace offering More than 2k interested customers have signed up already
COMPETITION AND DEFENSIBILITY
Traditional Banks and Telcos
Technology Legacy systems and cost structure State of art purpose-built tech platform
Mobile Application Substandard app or no app at all Robust App and Simple UI
Basic Account $25 per annum or a signup fees of $5 Free
Currency Conversion Rate 4% plus hidden costs 1.5% flat (mid-market rates)
Instant Interbank Transfers No Yes
Signup Time 1-2 hours 5 minutes
Online Payments Only for premium customers Yes

Early mover advantage will enable us to establish a loyal customer base

Some SBP Approved Fintechs e.g. Chime in USA, Paytm in India and N26 in Germany
Design focused product with Intuitive UI and ability to seamless
introduce new features
EMI Licensing is a lengthy process with a lot of red tape and high
startup capital costs
Capitalize on network effects to scale and capture other adjacent
segments e.g. merchant and online payments
Digital Banking is not an incumbent market as we have seen even
big EU banks try and fail at it e.g. Bo by RBS
TECHNOLOGY & TRACTION

Alpha version of App

Foundation / Infrastructure

API Gateway / Backend to the frontend

Test run on 3rd party modular core

banking platform

Custom components of our own yet to

be built e.g. CMS onboarding, business
logic backend
Additional resources required for
integrations with third parties e.g. card
and payments processor, accounting,
regulatory reporting software
THE HEXA PROPOSITION

Customer perspective Huge market opportunity

in mobile banking and
payments space
Instant, secure,
Convenient Ambitious,
contactless Great banking
access to inspiring and
payments experience for Strong
banking on experienced
(online and p2p) the customer network
mobile founders
effects
business
Value
proposition
for other
stakeholders
Solid business
Solves an model with
important multiple high
Cheaper, Design-centric problem for the revenue
transparent product with a customers generating
pricing simple UI streams of
financing for
Defensible business Infrastructure
coupled with a strong Projects
execution strategy
 TEAM
The team has the background, track record and a vision to succeed

Founder/Chairman/CEO Founder/COO Executive Director CFO

Lt Gen (R) MUHAMMAD AFZAL MUHAMMAD SHEHRYAR MALEEHA BANGASH MUHAMMAD BHATTI

o Currently Chairman of 3 o MSc. Management & o Technical Expert o Associate Investment Office
startups Accounting from Queen Consultant at International at International Finance
Mary University London Finance Corporation Corporation
o Ex Chairman NDMA
o Ex Chief Administrator of o MBA Investment & Finance, o Chartered Financial Analyst
o Ex Engineer-in-Chief
ASBH (Financial Advisory The University of Chicago o MSc Finance from London
o 5 years as Head of Frontier firm) Booth School of Business Business School
Works Organization
o 3 Years Experience in o +22 Years Experience in o Ex Financial Manager,
o Mentor of many startups Security Management banking, Finance & Risk Frontier Works Organization
o Key area of expertise are o 2 Years Experience in Management, Credit Risk
Analysis o Ex Financial Analyst at
Developmental finance, Project Management &
Ministry of Finance
Fintech, Infrastructure Business Development in o Ex Managing Director,
Development, Proptech, Real Estate Sector Investment Climate o +8 Years Experience in
Project Risk Management, Reform Unit & Head, World Finance, Project Risk
o Area of expertise are real management &
Green Energy Bank Group
estate finance, business
Infrastructure Funding
o Ex Director Military development & growth.
Intelligence

Successfully
managed
PRIMARY RESEARCH

• We commissioned a survey in Lahore and Islamabad around Malls

• 3 in 5 people would be comfortable and willing to switch to a mobile only Wallet/Bank
• Only 2 in 5 people even in the urban locations have bank accounts
• Only 9 people in 1000 had a credit card

Some common pain points of average consumer today

“I have to get my ID card I pay $80 annually in bank “I pay close to $50 per year “I am a freelancer on fiverr,
copied and stand in the fees, yet it takes me 15 for my bank account and it and I use payoneer to
queue for 20 minutes at minutes to get on a call with takes me on average 30 withdraw my earnings.
Western Union location (a customer service to activate minutes per visit to bank to Signup cost were $30 and it
bank) to receive the my debit card for an online carry out basic transactions costs me $5 for each atm
remittance sent from my payment. like paying utility bills or withdrawal and I can only
brother from UAE on 1st of – Sameer Khan cashing the cheque” - withdraw max $ 115 in one go.
every month” (Accountant at FMCG) Mehroze Akhtar I have to carry out on
– Tabeer Aslam (student) (Sales Manager at a retail average 8 transactions per
shop) month” – Ahmer Tahseen
(IT freelancer)
FINANCIALS
Predicted Profitability Predicted Customer Growth

Year 5

Year 4

Year 3

Year 2

Year 1
Year 5
Year 4 Year 1 Year 2 Year 3 Year 4 Year 5
Total Customers 70000 500000 1500000 5000000 10000000
Year 3
Paying customers 15000 100000 250000 750000 1250000
Year 2
Newly acquired Customers 70000 430000 1000000 2500000 5000000
Year 1

Total Revenue Direct Costs Gross Profit Total Cost Net Profit
Year 5 104600000 34410000 70190000 59410000 10780000
Year 4 51100000 15390000 35710000 32390000 3320000
Year 3 23730000 7090000 16640000 15590000 1050000
Year 2 9610000 3030000 6580000 6530000 50000
Year 1 1350000 525000 825000 1225000 -400000
COSTING

COST PER USER COST DISTRIBUTION

Onboarding Operations Costs (Current Account) Payment processing Card Processing Card Customer Service

21

10% 15%

13
25%
10 25%

7
5 10%
15%

Year 1 Year 2 Year 3 Year 4 Year 5

Thank you for your time and consideration
+92 301 3344428 | [email protected]
APPENDIX

1. World Bank sees Pakistan digital finance potential at $36-billion

2. Why Pakistani Startup's are the next big thing?
3. The worlds best banks the future of banking is digital after coronavirus
4. Fintech growth story in India which has a similar society and dynamics
5. Rapid uptick in number of users for challenger banks post Covid-19
6. Pakistan is one the biggest bet of China outside China