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Company Overview
Beforepay Group Limited was founded in 2019. The company operates in the Pay on Demand industry, which is a relatively new concept and appears attractive to potential customers. This business model is witnessing significant growth as customers are looking for a more flexible and transparent approach to manage their personal finances. The company presently has over 125,500 active customers, who are diverse in terms of age, income, and industry of employment.
Source: Company Website
Key Highlights
Source: IPO Prospectus
Source: IPO Prospectus
Number of Monthly Cash Outs Since August 2020:
Source: IPO Prospectus
Average Monthly Cash Out Amount Since August 2020 (AU$):
Source: IPO Prospectus
Default Rate Vintages by Cohort:
Source: IPO Prospectus
Financial Highlights
Source: IPO Prospectus
Key Management Highlights
Source: IPO Prospectus
Risk Associated (High)
Investment in the IPO of "B4P" is exposed to a variety of risks such as:
Conclusion
Beforepay is a relatively new business that was incorporated in June 2019 and commercially launched its product in August 2020. It has been operating at a loss since its incorporation. However, its "Pay on Demand" business model has been experiencing rapid growth as customers seek a more flexible and transparent way to manage their finances.
Furthermore, the company's ability to become profitable is contingent on its potential to maximize revenue by boosting Pay Advances by targeting additional users, significantly increasing the average Cash Out amount, reducing Cash Out defaults, and managing operating costs, including employee and advertising and marketing expenses. Beforepay might not be able to develop fast enough or keep defaults low enough to make an operating profit and become cash flow positive.
Therefore, given the lucrative business model, increasing Active User base, loss-making status, and vital risk metrics, the IPO of Beforepay Group Limited would be "Attractive' only for a High-Risk appetite investor.
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