Takeaways from Robo.cash Live Webcast #4
On May 22, the Deputy CFO Robocash Group Grigorii Shikunov held a webcast for investors revealing the key events of Robo.cash platform and the group in Q1 2021.
ROBO.CASH INVESTMENT PLATFORM IN Q1 2021 & PLANS FOR 2021
Q1 of 2021 showed excellent results for Robo.cash. The platform passed new milestones, including a brand-new website design and integrating a new loan originator, and set 3 new records.The amount of new users grew by 145% QoQ, while the net deposits increased by 50% QoQ.
ROBOCASH GROUP: GROWING WITH EVERY QUARTER
● Revenue for the Q1 increased by 49% QoQ and reached 58.5 M USD.
● The net profit in Q1 2021 reached 7.6 M USD.
● Total assets complete the solid Q1 growing by 15% and reaching 112.9 M USD.
QUESTIONS AND ANSWERS
Below, we are providing the key points from Grigorii’s answers given during the traditional Q&A session. For your convenience, they are grouped by topics.
ROBOCASH GROUP PERFORMANCE
Do you plan to publish the Auditor’s opinion to the financial statements?
The auditor’s opinion comes in the same document as the Summary Combined Financial Statements, and they both can be found on Robocash Group website. The full report and the Auditor’s comments will be published within the full financial disclosure during the IPO.
Do all loan originators on the platform belong to the consolidated scope of the financial accounts?
All loan originators present on the platform are embraced in the presented financial accounts, are fully owned and controlled by Robocash Group.
What is the default rate?
In different markets of the group’s footprint, the default rate can be a bit lower or higher depending on the market specifics and our borrowers’ mentality. On the group level, the default rate is around 12%.
Most loans seem to originate from Russia and Kazakhstan, do you see a "country" risk and is there any way to mitigate this?
When we speak about Robo.cash platform, only about 13% of all loans placed on it come from RC Riga Kazakhstan, and there are no loans from Russian company Zaymer. On the group level, we always monitor the market and upcoming changes in the legal environment.Thus, we are always ready to tackle any possible risks. To mitigate the risk of sanctions, we are becoming more international. Currently, we comprise legal entities across several countries. We are diversifying our markets and growing the business in markets outside Russia and Kazakhstan.
ROBOCASH PLATFORM AS PART OF THE HOLDING
Skin in the game
Our skin in the game is up to 60 to 70%. The investment platform Robo.cash is one of the important sources of funding for Robocash Group, but obviously not the only one. About 12 to 13% of the group’s loan book is funded through the P2P platform, but it is necessary to emphasize that some loan originators are not financed through it at all, as they get funding from other sources. For the loan originating companies presented on the platform, about 30 to 40% are funded with P2P investors’ money.
In case when a borrower defaults on their loan investors always get the principal and earn interest from a loan originator through the Buyback guarantee. Our Buyback guarantee has been working flawlessly ever since the platform was launched 4 years ago. There is another way of protection which is the Group Guarantee. Robocash Group guarantees obligations of its loan originators via direct participation in capital. We have the advantage of closely monitoring the loan originator's financial flows, so we can see any possible threats to investors’ funds and protect them.
FEATURES & CHANGES ON THE PLATFORM
We updated our secondary market in April this year, and there are no plans to implement any further changes just now. However, we will take into account investors’ wishes and suggestions for further improvement of the platform.
We consider developing a mobile app for Robo.cash, although there are no certain plans for it at the moment.
In terms of interest rates, Robo.cash is striving to provide the best risk-reward ratio based on the market tendencies, investors’ expectations and business needs. We are currently offering loans with 10.5% to 12.3% annual return, and we see it as a competitive rate. If we see that it is necessary to rebalance the interest rates, we will adjust them, giving a prior notice to our investors.
New loan originators
We have introduced 2 new lenders to the platform this year, and at the moment, we have no plans to integrate any more of them. However, this might change in case one of Robocash Group companies will need funding from the P2P platform.
PLANS FOR THE FUTURE
The nearest goal for Robocash Group is to launch an online lending service in Sri Lanka. Besides that, the group is going to scale its products in the existing markets and double its key performance indicators.
Respectively, the platform intends to grow significantly this year. This year we have introduced 2 new loan originators: RC Riga Kazakhstan and UnaPay from the Philippines. UnaPay comes with two brand new products: salary loans and Buy Now, Pay Later. As the platform is a strategic source of funding for the group, it will keep growing respectively.
You can find the presentation for the webcast here. The webcast recording is available on our YouTube channel.