Beltroad

lendingsme financing

FOUNDING YEAR: 2017
LOCATION: Hong Kong
Last Update: 01/05/2020

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About

BeltRoadEPC is a P2B platform that serves three groups of customers, namely i) Project contractors ("Contractors"); ii) local SME suppliers along the Belt and Road Initiative ("BRI") ("Suppliers"); and iii) funders wanting to gain exposure on BRI ("Funders"). We are in a good position to offer a solution to all groups of customers as we are building an ecosystem to facilitate project execution

MEDICI Analysis

Beltroad helps individuals to raise working capital for their business. It is is a licensed money lender which provides customized short to medium term financing solutions to business owners and sponsors in the region.

Focus

PRODUCTS & SERVICES

Invoice Financing. Online marketplace for local SME suppliers for procurement needs.

REVENUE MODEL

Revenue model Two revenue streams: i) Commission fees from procurement and trade finance (from suppliers); and ii) Servicing fees for funders. Commission fees will be 1-2% invoice discounting fee, Whilst service fees will be around 1-2% per annum.

MAIN CLIENTS

Small and medium businesses

PRIMARY PROBLEM SOLVED

We have 3 types of customers - Contractors, Suppliers, Funders and we are solving the following problems for each group Contractors - With language barriers there is difficulties in accessing local suppliers. This leads to pricing ambiguity in the procurement process. In addition there are limited KYC checks on the suppliers. Suppliers - Key challenge is in finding working capital solutions and finding access to contractors. In addition most documentation is still dine in paper format. Funders - Limited products available to get exposure on BRI investments. Getting to know county specific investment product knowledge and hedging foreign currency exposure is a challenge.

INTELLECTUAL PROPERTY

Patent(s) NOT_FILED

Traction

REVENUE

$0 - $99k

REVENUE COMMENT:

More information on the Belt Road Initiative can be found here - http://beltandroad.hktdc.com/en/belt-and-road-basics

ACTIVE USERS:

10

ACTIVE USERS COMMENT:

We were selected as a finalist for Seed Stars Hong Kong and will be attending the Startup Istanbul event in October. We are discussing with 2 project owners in Pakistan and Bangladesh to come on board to roll out the platform in these markets.

TRACTION COMMENT:

The company is working in 60+ countries and is planning to expand in more countries in Asia.

People

FOUNDERS

Ningwa Lau

BOARD MEMBERS AND ADVISORS

Rui Ma

NUMBER OF EMPLOYEES

1-10

COMMENT:

Ningwa Lau - Number crunching, relationship driven, problems solving,deal/tech savvy individual with extensive cross cultural,border experience.He is currently serving as the MD at Joy Rich Finance, a licensed moneylender based in HK specializing in structured financing for both capex,working capital Thilan Kiridena - Entrepreneur,Ex-Banker. Passionate about small business & international trade finance.I believe SME development can leapfrog Asian economies. My experiences have been enhanced with cross functional,cross border experience in delivering solutions to my clients Chandika Mendis - Primary Background: Head of Engineering, Chief Software Architect. Involved in providing leadership to the technology,testing practices at Virtusa Polaris. Drive continuous improvement of engineering processes,productivity/quality with innovative tools,solutions.

Momentum

FUNDED

NO

LISTED

NO

For Investors

FUNDING NEEDED:

$500 K

USES OF FUNDS RAISED:

1. Platform Development

2. Increase reach to cover more projects in Sri Lanka

3. Expand into 3-5 selected markets

EXIT STRATEGY

The founders are interested to run the company in the medium to long term and are targeting a listing in the Hong Kong Gem Board.

MONTHS LEFT WITH CURRENT CASH BURN RATE:

30 months from 30 Sep, 2017

COMPETITORS:

No Direct Competition

Funding Socieities

Quipital

BASICS

FOUNDING YEAR:

2017

LOCATION:

Hong Kong

Views:

498 VISITORS | 1899 VIEWS

About

BeltRoadEPC is a P2B platform that serves three groups of customers, namely i) Project contractors ("Contractors"); ii) local SME suppliers along the Belt and Road Initiative ("BRI") ("Suppliers"); and iii) funders wanting to gain exposure on BRI ("Funders"). We are in a good position to offer a solution to all groups of customers as we are building an ecosystem to facilitate project execution

Subscribe to the MEDICI Inner Circle Membership and gain access to an exclusive Slack community where you can engage in discussions with global industry experts!

MEDICI Analysis

Beltroad helps individuals to raise working capital for their business. It is is a licensed money lender which provides customized short to medium term financing solutions to business owners and sponsors in the region.

Focus+
Momentum+
Traction+
People+
For Investors+
Other+

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Beltroad

About

BeltRoadEPC is a P2B platform that serves three groups of customers, namely i) Project contractors ("Contractors"); ii) local SME suppliers along the Belt and Road Initiative ("BRI") ("Suppliers"); and iii) funders wanting to gain exposure on BRI ("Funders"). We are in a good position to offer a solution to all groups of customers as we are building an ecosystem to facilitate project execution

Focus

PRODUCTS & SERVICES

Our product offering is specific to the EPC contractors and suppliers coming on board and we are financing invoices which are verified by the contractors. Hence we are combining a market place (Contractors and Suppliers) with a financing platform (Suppliers and Funders)

REVENUE MODEL

Revenue model Two revenue streams: i) Commission fees from procurement and trade finance (from suppliers); and ii) Servicing fees for funders. Commission fees will be 1-2% invoice discounting fee, Whilst service fees will be around 1-2% per annum.

TOP PROBLEM SOLVED

We have 3 types of customers - Contractors, Suppliers, Funders and we are solving the following problems for each group Contractors - With language barriers there is difficulties in accessing local suppliers. This leads to pricing ambiguity in the procurement process. In addition there are limited KYC checks on the suppliers. Suppliers - Key challenge is in finding working capital solutions and finding access to contractors. In addition most documentation is still dine in paper format. Funders - Limited products available to get exposure on BRI investments. Getting to know county specific investment product knowledge and hedging foreign currency exposure is a challenge.

PRODUCT DEVELOPMENT STAGE

MVP

PRODUCT DEVELOPMENT COMMENT

We aim to validate the business model in Sri Lanka and we have already engaged three Chinese EPC Contractors and 10 local Suppliers to roll out the system. A SPV was set up to fund the working capitals requirements of the five suppliers. Before we open the platform to 3rd funders, we want to ensure the platform is in compliance with both Hong Kong and local regulatory requirements. To this end, we have engaged an international law firm in Hong Kong and its Sri Lankan partner for legal opinions and clear the structure. There are a number of opportunities in Sri Lanka which are in the BRI pipeline. We are also exploring the possibility of rolling out the platform to other markets where we have already existing connections and resources given our experience and network at Standard Chartered Bank. On the funding side we want to onboard select 3rd party professional investors and to educate them on such initiative with the aim of providing local suppliers sufficient funding and earn platform fees.

KEY DIFFERENTIATORS

No Direct Competition. There are a number of invoice discounting platforms coming up ina number of countries. Our product offering is specific to the EPC contractors coming on board and we are financing invoices which are verified by the contractors. Hence we are combining a market place (Contractors and Suppliers) with a financing platform (Suppliers and Funders)

PRIMARY CUSTOMER TYPE

Enterprise - Banks or Financial Institutions

Enterprise - Others

Small And Medium Business - Other

PRODUCT ATTRIBUTES

Back Office

Customer facing

Other

STRATEGIC CLIENTS AND PARTNERSHIP

Standard Chartered : Cash Management

Sampath Bank PLC : Bank Accounts

Virtusa Polaris : Back End Development

People

FOUNDERS

Ningwa Lau

NUMBER OF EMPLOYEES

1-10

KEY EMPLOYEES:

CEO, FOUNDER: Ningwa Lau

CTO: Chandika Mendis

TEAM COMMENT:

Ningwa Lau - Number crunching, relationship driven, problems solving,deal/tech savvy individual with extensive cross cultural,border experience.He is currently serving as the MD at Joy Rich Finance, a licensed moneylender based in HK specializing in structured financing for both capex,working capital Thilan Kiridena - Entrepreneur,Ex-Banker. Passionate about small business & international trade finance.I believe SME development can leapfrog Asian economies. My experiences have been enhanced with cross functional,cross border experience in delivering solutions to my clients Chandika Mendis - Primary Background: Head of Engineering, Chief Software Architect. Involved in providing leadership to the technology,testing practices at Virtusa Polaris. Drive continuous improvement of engineering processes,productivity/quality with innovative tools,solutions.

BOARD MEMBERS AND ADVISORS:

Rui Ma

Momentum

FUNDED

NO

FUNDING COMPLETED

NO

LISTED

NO

FUNDING SERIES