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A Glimpse of PaygOps’ TRUE Receivables Finance Platform
As you may have heard, we recently unveiled a series of initiatives to solve the bottleneck in last-mile financing. Building upon our renowned tech expertise and Fintech leadership in the Paygo industry, PaygOps teams are developing a TRUE receivables finance platform, through which investors can directly invest in pools of receivables and last-mile distributors (LMDs) can get liquidity straight away, representing a major game changer for both parties, unlike the traditional approach in which the Paygo assets act only as a collateral.
The pilot project for the aforementioned platform is currently running with partners First Growth Ventures (acting as the investor) and Pawame (acting as the distributor), and has already been drawing plenty of attention from debt investors and LMDs across Sub Saharan Africa. Needless to say, we’re truly thrilled to be assembling state-of-the-art tech infrastructure so more finance providers and LMDs can soon join this unique opportunity.
What’s next?
As per initially planned, PaygOps’ True Receivables Platform will be available, firstly, to LMDs running operations in Kenya. Such LMDs and debt investors interested in running further pilots with us are encouraged to reach out so we can discuss the details of such a collaboration. We’re considering expanding this groundbreaking mechanism in Kenya from November 2021 onward and scaling the initiative to Ghana, Nigeria, Tanzania and Uganda by the first semester of 2022.
While all of the pieces keep interlocking in the background, we thought it would be relevant to go deeper into how the platform will fast track the financing process for all of its stakeholders, giving you just a little glimpse of what the future of last-mile financing holds.
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Through PaygOps TRUE receivables platform, last-mile distributors are able to create customised portfolios.
The distributors are able to select which of the Paygo leases they want to include in their proposed portfolio to be offered. They may group together, for example, homogeneous leases, based on several conditions, such as all the products sold on a specific offer in a specific time period, or a group of leases with the same age and performance. Once the assets are selected, they will be able to see the projected stats of the portfolio and proceed to create it.
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Debt investors can visualise the different portfolios offered and select the ones they want to invest in.
Investors can see the list of available portfolios. For each of the proposed portfolios, they can see a default report and get the anonymised data in the open format to automatically apply their own analysis to it. They also have access to the distributor's legal information. This allows for an almost entirely automated and data-driven due diligence process with a significantly lower cost than the traditional approach, making investment in early-stage distributors way easier.
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Repayments go straight to investors, who can therefore visualise the effective performance of the purchased portfolios.
When an end customer makes a repayment for a lease that is part of a portfolio purchased by the investor, the investor receives the amount in their account without needing to request it or do any further actions. This drastically reduces the risk for investors, as the repayments will keep coming even if the distribution company ceases activity. From the dashboard, the investor will be able to visualise key metrics such as repayment ratio (per hubs, clusters, agents), value of assets, number of active/defaulted assets, amount collected by month, outstanding volume, as well as more granular data on each asset -or groups of assets- within the portfolio.
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Our solution allows data aggregation and sets the grounds for Paygo data standardisation, reducing costs for both LMDs and investors.
Up until now, investors receive due diligence data from each distributor in multiple formats and, consequently, need to spend weeks to clean, organise and analyse such data. PaygOps True Receivables Finance Platform aims to connect directly to the leading Paygo platforms and convert data from such platforms' proprietary formats into an open data format.
The following infographic depicts how easy it will be for both LMDs and investors to engage in this unprecedented financing mechanism via PaygOps:
Last-mile distributors and debt investors interested in getting further information on this groundbreaking financing mechanism, please reach out to us at [email protected]. You may also refer to the dedicated page on the pilot project that PaygOps is carrying out together with partners First Growth Ventures and Pawame.
About Solaris Offgrid:
Solaris Offgrid supports distributors and manufacturers across all industries in over 35 countries through Product Development Services and flexible IT solutions. Solaris Offgrid’s flagship PaygOps platform is an interoperable B2B SaaS which connects energy and utility appliances (solar devices, water-pumps, cookstoves, smart meters, e-bikes) and payment methods (Pay-as-you-go and Mobile Money) within a suite of enterprise applications or API services, to allow distributors to smoothly manage their operations and tackle their challenges at the last mile, thus enabling them to provide affordable essential products and services to millions of people at the Bottom-of-the-Pyramid.
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