Business Name: HamsaPay Inc.
Current AUM: Not applicable
$ Volume of Transactions Completed Last 12 months: Not applicable, as new program
Target Launch Date: Official launch on mid of July, 2022
Location and Team Size: San Francisco, 27 FTE as of June 2022
Years in Operation: (If less than 2 years in operation, number of years founding team has worked together)
HamsaPay operated for less than 2 years. Some of our Co-founders have worked together for over 10 years in leading Financial Service Organizations like Amex, Apple, AliPay:
CEO of APAC who was Amex China GM, Director of Apple Pay APAC
CTO who was the CTO AMEX China, Head of Global Payment Engineering Alipay
COO who was COO/CTO of Amex China, BD Head of Apple Pay APAC
Historical Loan Tape (years): Our trade finance desk has combined 40+ years of banking experience that managed $600MM+ trade finance assets on average.
Key Professional Partners:
Legal - Sullivan & Worcester UK LLP
Compliance AML & Sanction - World Check from Refinitiv
Accounting - The David Powell, Inc. Financial Services Division
Operational - Hamsa Trade Limited, a HongKong registered SPV (Originator)
Operational - Singapore Mobility Corporation Pte Ltd,. (Operation)
- Describe your business and go to market strategy.
- What makes your approach unique within your industry?
- Describe your business and go to market strategy.
HamsaPay Inc. (“HP”) is in the business of democratizing access to capital for small and medium sized enterprises (SMEs) by working with aggregators such as e-commerce platforms, and through its blockchain native platform, collects, and makes available, the necessary data to de-risk supply chain finance transactions. On the other side, HP seeks to make these assets available to interested investors in a DeFi environment, thus democratizing opportunities to invest as well. HP was established in Bay Area California in 2020. From the start, HP has had a global horizon thanks to its Founder and Leadership team. As of today, there are 28 full time employees across multiple locations and time zones, including US, Canada, Brazil, HK and Mainland China. In addition to our cutting edge technology platform, we believe we’re unique in following areas:
The Founder – our CEO, Adam Zbar, is a serial entrepreneur. Thanks to his unerring instinct for business, he brought several businesses into success and today these businesses worth billions of dollars;
The People – members of our leadership team share the common belief and gave up their high positions in various well-known companies, such as Amex, Apple, Alipay and Citigroup to join our company. Their talent and experiences in tech and financial areas are no doubt the great assets for us to conquer challenges in business and make us stand out amongst competitions.
The Bridge – Firstly, we believe DeFi is the revolution and future of our existing financial system. Connecting the real-world trade asset to DeFi world is the right path to democratize this area. Secondly, we focus on cross-border trade finance. There’s a $1.7 trillion liquidity gap in this area. It’s especially difficult for those SMEs to access capital for their working capital needs. We’re devoted to helping those businesses to get access to capital with real trade assets and help them grow. Our Platform supports: asset risk rating, tokenization, pooling, and trading on private marketplace. The Platform also supports Factoring, Reverse Factoring, Purchase Order Finance, Buy Now Pay Later, & Inventory Finance.
- Why are you a good partner for Centrifuge?
We believe Centrifuge and Hamsa share the same vision and belief. It is evident Centrifuge is already helping bring real-world assets into the DeFi world. Using Centrifuge’s established platform can help accelerate our ability to raise funds and provide liquidity to this underserved area of RWAs.
- How do you differentiate yourself from competitors?
We have a significant pipeline of assets (initially $30 million) that can quickly scale to over $1 billion in real-world trade assets, and a deep understanding and belief in DeFi. We built our blockchain native technology platform to not only digitize and track these assets, but also to risk manage and settle the underlying transaction.
How is your entity financed today, what are the current sources of capital:
Equity raised: Venture Equity $9M plus a $5M Uncapped Convertible Note With 15% Discount Into Series
Debt raised: Venture Debt $2.5M Facility With 1st Tranche $1.75M utilized.
What is your entity’s revenue/fee model:
- Origination fees: 1% Fee for Origination, and 20-50 bps Technology Platform and Servicing Fee.
- Target spread: APRs range from 10-30% depending on risk characteristics. Terms range from 20 to 90 days.
- Other: N/A
- Please explain the source(s) of, and ability to scale, your first-loss junior (TIN) capital in the pool:
We have a $100M term sheet from an institutional investor to fund opportunities that fit our In-The-Box Risk Analysis Criteria.
- Please explain the source(s) of, and ability to scale, your senior (DROP) capital in the pool:
We are in conversations with major institutional investors such as banks for this. We’re also interested in crowd-funding this via DeFi.
- Capital relationships and how much you will bring through Centrifuge KYC to invest in either senior or junior tranche of your pool:
We have a $100M term sheet to invest to fund opportunities that meet our risk criteria. We will determine how much to allocate to the Centrifuge ecosystem based on its efficiency and efficacy.
- Outline why DeFi is important to your business strategy:
DeFi is an important alternative source of liquidity to fund our programs that are currently and will be helping our clients gain better proceed access to working capital.
- Articulate why Centrifuge’s community and protocol is a fit for financing:
We believe the democracy and transparency of Centrifuge’s community and protocol create a fair and effective environment for financing.
Structure: Risk & Terms
- Please explain the key risks inherent in this opportunity and asset class:
As of this day, our asset is derived from account receivables of our seller clients. Thus, the key risk associated is credit risk. In addition, there will be compliance risk. We have developed a comprehensive risk management policy to address the risks:
- Reperformance of KYC on our seller clients, both entity level and ultimate beneficial owners.
- Automated AML and sanctions screening on seller and buyer;
- Underlying trading goods & service screening.
- Receivables purchase agreement includes: recourse on seller;
- Right of offset on seller’s assets and cash;
- Right of stop new finance at Hamsa’s discretion;
- English law as governing law
- Obtaining first hand trading data/info;
- Eliminating probability of double financing;
- Ongoing transaction data monitoring until full repayment on due;
- Third party trade data validation;
- Ongoing review on seller’s collateral asset;
- Automated operational process.
Established prudent and effective credit criteria;
Ongoing monitoring seller’s profile and underlying trade activities;
Pool Size & Pipeline:
- At Launch: Nil
- 6 Months after Launch: $10MM
- 12 Months after Launch: $50MM
- Origination Pipeline Details: 4,000+ eligible sellers referred by ecommerce marketplace partner
Asset & Rates:
- Asset Type(s): Trade Receivables
- Average Ticket Size: $5,000
- Average Asset Maturity: 20 days
*** Expect Default Rate:** < 0.5%
- Expected borrowing rate on senior tranche (on-chain): 4% - 7%
- Expected lending rate to end borrower (off-chain): 12% - 16%