HashChing
HashChing
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HashChing Australia’s first and largest online home loan marketplace.
  • Finance
  • Internet Business
  • Mobile Apps
  • A$291,250

    invested

  • 29.1% funded

  • 2 days & 4 hours

    time left

  • 3.8% - 16.7%

    min - max equity offered

  • A$1,000,000.00 - A$5,000,000.00

    min - max investment sought

  • A$250.00

    min investment parcel

INVEST IN THIS OFFER
Previous pre-money valuations

Hi,

I couldn't find or calculate the previous valuations.
Could you please provide, for the previous 3 capital raising that were made by HashChing:
1.Capital raising date
2.Pre-money valuation
3.Amount paid
4.Percentage of shares issued for the investors for that round.
Also the annual revenue or 12 months prior to the valuation

Kind regards

Leeanne Lyons posted on 01.06.2018

Hi Leeanne,

Below are the details of last three capital raises with latest one first:

1. Capital raise of $600k convertible note in Oct 2017 which got converted to shares in April 2018 at 20% discount to $25m pre-money valuation (i.e. $20m pre-money val), as per convertible note terms. 3% of new shares were issued and prior 12 months revenue was $1.17m at the time of raise.

2. Equity capital raise of $1.3m was done in May 2017 at $15m pre-money valuation. 12.5% of new shares were issued and prior 12 months revenue was $559k at the time of raise.

3. Equity capital raise of $820K was completed in Dec 2016 at $9m pre-money valuation. 12% of new shares were issued and prior 12 months revenue was $206k at the time of raise.

Regards,
Mandeep

Mandeep Sodhi posted on 01.06.2018

Replied to Leeanne Lyons

Valuation

Hi Mandeep
Can you provide some guidance as to how you arrived at a pre-money valuation of $25m, particularly given the ordinary shares will sit behind the preference shares on issue in the liquidation stack. Are there any comparable that show equivalent multiples of EBITDA?
Thanks
Toby

Toby Eggleston posted on 31.05.2018

Hi Toby,

Valuation of any growing startup is hard, and some of the factors to consider would be to look at the capital raise done by similar marketplaces and home loan startups locally (Uno, Lendi) and overseas (Habito, Trussle). There is not much data available publicly on the valuation of the home loan startups, but you can make some assumptions based on the amount of capital these startups raised even in the pre-revenue stage, such as Athena Home Loans. I would also suggest looking at tech valuations of similar marketplaces or FinTech at the time of listing or recent IPO in Australia, e.g. Credible, ZipMoney, Raiz.

Other things to consider would be the market size, revenue opportunity and the product roadmap of HashChing in Offer document. I would also request you to read the competence of the Board and the execution capabilities of the management team of HashChing to date in our Offer document.

Regards,
Mandeep

Mandeep Sodhi posted on 31.05.2018

Replied to Toby Eggleston

Minimum Raise Amount

Hi Team,

I can see we are a fair way off the minimum amount..

If not reached, will you cancel the raise or extend the window?

Thanks,

DJ

Dylan Jobson posted on 31.05.2018

Hi DJ,

Thank you for your question.

We are in discussion with sophisticated investors separately. If we do not raise the minimum amount by 15 June, we will raise the complete round privately through the sophisticated investors we are currently speaking to, and Equitise will refund the amount you invested in HashChing back to you. Unfortunately, we cannot extend the window. If we do raise the minimum amount and above from this CSF, we will only raise the remaining amount out of total $5m privately.

Regards,
Mandeep

Mandeep Sodhi posted on 31.05.2018

Replied to Dylan Jobson

ESIC

Does or will HashChing qualify as an Early Stage Investment Company? Has this been considered?

Nick Utber posted on 17.05.2018

Dear Nick,

Thank you for your question.

Fortunately for us, the company had an assessable income of more than $200k last financial year which is one of the requirement to be considered as an ESIC :)

In short, HashChing is not qualified as an ESIC.

Regards,
Mandeep

Mandeep Sodhi posted on 17.05.2018

Replied to Nick Utber

It was mentioned at the CeBIT panel discussion yesterday that the mortgage industry review being undertaken by ASIC and Treasury is to be reported on in September.

How is HashChing placed to either take advantage of or just react to this?

Anthony McInnes posted on 16.05.2018

Dear Anthony,

Thank you for your question.

Given the fact that the Royal Commission is in the early stages, the outcomes and recommendations of the Royal Commission cannot be known at this time. We consider that comments are too speculative and uncertain.

One of the issues raised were around disclosing correct living expenses and income. HashChing has already launched a service at no cost to brokers or borrowers that categorises online bank statement into 91 categories within seconds to help brokers calculate the income and living expenses correctly.

Regards,
Mandeep
Founder & CEO@HashChing

Mandeep Sodhi posted on 16.05.2018

Replied to Anthony McInnes

Break even milestone

Appreciate that the focus will be on growth in the medium term, which is why the loss before tax grows, but at what revenue point are you forecasting to reach break even and what FY are you expecting to achieve this?

Sandor Helby posted on 15.05.2018

Dear Sandor,

Thank you for your question.

I am afraid ASIC has asked us not to forecast past 2 years due to the uncertainty of forecasting beyond that period. We do have a detailed financial model however we are restricted to what we can share in a retail offering.

I strongly encourage you to draw your own conclusion from the information we have provided in the Offer document including execution capability of the management team to date and the experience of the Board. I appreciate that this might not be the answer you were hoping to receive but we do have restrictions on how far we are allowed to forecast.

Regards,
Mandeep
Founder & CEO@HashChing

Mandeep Sodhi posted on 15.05.2018

Replied to Sandor Helby

ACL

Hi Team,

Can you please provide details on the following:
1. How much of FY19 revenue and growth is dependent on being granted ACL, and therefore issuing white label products. Please provide details and how a delay in ACL might impact future earnings potential.

Anthony Proud posted on 15.05.2018

Dear Anthony,

Thank you for your question.

We have conservatively assumed 1% of total revenue from white label products while 99% of the revenue is forecasted to come from our existing business model. The delay in ACL will impact 1% of total revenue forecast in FY19.

However, we have just launched white label home loan offering at 3.59% p.a. with 3.65% p.a. comparison rate that is currently live on our website through our partner mortgage brokers who have their ACL (as at 15 May 2018, we have 129 partner mortgage brokers who have their ACL). We are in the process of getting these partner brokers accredited right now before they can offer our product to the borrowers. As at 15 May 2018, we have already approved 11 partner mortgage brokers who are now accredited to offer our white label mortgage.

We are currently restricted to partner with one mortgage provider as we do not have our ACL yet. Once we have our ACL, we would be able to partner with more funders directly and offer choice to our partner mortgage brokers. Under our ACL, we would look to launch other white label products that we have mentioned in Section 2.4.2 of the Offer Document.

Please let me know if you have any questions.

Regards,
Mandeep
Founder & CEO@HashChing

Mandeep Sodhi posted on 15.05.2018

Replied to Anthony Proud

Selling of shares

Hi team, Once the shares are allocated to users, is there any minimum holding period or can they be sold after allocation?

Debojyoti Sarker posted on 11.05.2018

Dear Debojyoti,

Thank you for your question and interest in HashChing.

It is important to note that investment in a start-up business that is not listed is unlikely to be liquid in the short term due to the nature of the businesses. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you. You should look at this as at least a three-year investment.

We do understand that investors would like to sell their shares at some point in future. Below are some of the potential exit scenarios:

1. IPO – HashChing could look at IPO in three years. IPO is a great outcome for a growing marketplace like HashChing to raise additional capital in future to scale the business and provide investors with a possibility to exit.
2. Trade sale – This could be another possibility where another large organisation (in Australia or overseas) chooses to buy some or all of HashChing. While there is no guarantee this would occur, any potential trade sale offer would be assessed by the Board to see if there is a benefit to the shareholders.
3. Share Sale to a new or existing investor – There is a possibility where existing or new strategic investor would like to increase their interest in the company and company is not in the position to issue new shares beyond what’s offered as part of the potential future capital raisings. In such scenario, existing shareholders will be informed by the company if they would like to sell their shares to the interested existing or new investor.
4. Share Sale through the Secondary market – We are exploring the option of the Secondary market where existing shareholders could buy and sell shares. We understand that this is desirable and we are investigating platforms offering secondary markets to sell shares but it is a more convoluted process than selling on a stock exchange, and there may not be a buyer.
I hope I answered your question. Please do not hesitate to ask any further questions you might have.

Warm regards,
Mandeep
Founder & CEO@HashChing

Mandeep Sodhi posted on 12.05.2018

Replied to Debojyoti Sarker

  • > Offer Type: Australian Retail (CSF) Offer This offer is open to Retail and Wholesale/Sophisticated investors in Australia. Whilst in New Zealand the offer is open to Wholesale investors.
  • > Company: HashChing Limited Securities purchased are for direct equity in HashChing Limited.
  • > Security Type: Ordinary Shares
  • > Fees Paid by Issuer: 4% of funds raised Upon successful completion of this funding round a total of 4% of capital raised will be paid by the Issuer to Equitise.
  • > Cooling-Off Rights: 5 working days - Retail investors in Australia are able to withdraw their applications for securities with accordance to the Australian Crowd Source Funding (CSF) regulations. For more information please click on the link supplied.
    More Info
  • > Related Parties: None

More detailed information about this offer is contained in this Offer Document

Offer Document
Offer overview

The Company is offering 800,000 to 4,000,000 ordinary shares under the following terms:

*The company has authorised a maximum allocation of 2,055,927 securities under its Employee Share Option Plan. See section 2.6.1. of the Offer Document for more detail.

The Offer opened privately through the Equitise platform on 11 May 2018 and publiclyon 14 May 2018. The Offer is scheduled to close at 5pm (AEST) on 15 June 2018.

Investor rewards

 

*For more information on the Terms and Conditions for these Investor Rewards please review the Legal Documents section of the Equitise platform.

Executive summary

 

According to ACCC's Residential Mortgage Price Inquiry released in March 2018, existing borrowers on standard variable interest rate residential mortgages at the big four banks were paying up to 0.32 percent more (on average) than new borrowers. The ACCC study also mentioned that existing borrowers at big four banks are worse off staying with their bank (Source). We've created a marketplace to bring more transparency to the home loan market where borrowers can see all the discounted rates available through the mortgage brokers without providing any personal details.*

 

Launched in August 2015, HashChing is Australia's largest online marketplace for borrowers to secure competitive home loan deals from verified mortgage brokers.


The HashChing marketplace has assisted over 36,000 Australians own their home sooner, while also saving them thousands of dollars over the life of the loan.


Our vision is to help Australians make smarter financial decisions by providing great home loan deals and transparent financial information, thereby empowering them to make more informed decisions.

 

Below is a snapshot of our main points of difference: 

* The section of text relating to "ACCC's Residential Mortgage Price Inquiry" has been inserted as at 31 May 2018.

 

AWARDS

 

We pride ourselves on our service which has won us a lot of recognition recently including:

 

 

PRESS

 

We have been building our brand over time with several media profiles and stories across The Australian Financial Review, The Sydney Morning Herald, The Canberra Times, The Age, The Adviser, WA today, Channel 7 News and Money Management to name a few, as well as several web news sites and blogs.

 

 

 

INVESTORS

 

HashChing is backed by Picus Capital, H2 Ventures, Sapien Ventures and a group of strategic individual investors who have decades of experience in different sectors of the economy, spanning from financial technology, investment banking, real estate, mortgage broking, legal services, investments, media and financial services to name a few.

 

HashChing’s investors have constantly supported, advised and helped HashChing move forward and achieve growth. 

 

Business model

 

OVERVIEW

 

Revenue to date has been derived from two sources; broker subscriptions and commissions: 

 

 

As at 31st of March 2018, HashChing has grown quickly to over 36,000 leads generated, 1,714 home loans settled and 586 registered paying brokers. The business generated $780k of total revenue in financial year ending 30 June 2017 and is forecast to reach approximately $1.9m in financial year ending 30 June 2018.

 

REVENUE SNAPSHOT

*Excludes R&D offset claim

Milestones & History

 

As at 31 March 2018, HashChing had 586 active paying brokers on its platform and has settled $797 million worth of home loans through the platform. 

 

 

HashChing has been able to maintain the right balance between number of home loan inquiries and active brokers on the platform as we continue to scale the business.

Please note the figures above are financial year results.

Strategy & Vision

 

BETTER MORTGAGE EXPERIENCE USING TECHNOLOGY

 

At HashChing, we focus on giving our borrowers and brokers the best possible experience, ensuring a superior service delivery. Our secret sauce is our proprietary algorithm that currently ranks brokers on a range of variables such as number of reviews collected, average response time from receiving the lead to adding a remark, and conversion rate calculated based on total number of leads to loan settlement.

 

HashChing is currently exploring Artificial Intelligence (AI) and Machine Learning (ML) to learn from broker behaviour at a postcode level in real-time and help brokers improve performance in their area. Once launched our AI and ML capability will also provide a personalised experience at scale to brokers and borrowers.

 

 

HashChing ensures the reliability and accountability of its brokers through a borrower completed rating and review system.

 

Broker dashboard - brokers log into this dashboard to manage new leads, pick the deals they wish to advertise and collect borrower documents for application. 

 

 

 

Borrower dashboard - Launching later in May 2018, borrowers will be able to track home loan progress and communicate securely with the assigned broker through their very own dashboard.

 

 

GROWTH STRATEGY

 

Brand awareness and customer acquisition 

 

HashChing continues to invest in building its brand recognition and affinity with consumers and mortgage brokers via various digital marketing channels including social media and partnerships. HashChing has over 38,000 Facebook followers surpassing all of our major competitors. Our customers have participated in video testimonials that have been liked and shared by our social media followers. HashChing will also continue to focus on PR for a broader reach. To date we have been successful at raising our public profile, including in more traditional media.

 

Customer acquisition channels

 

Below is the overview of current and future channel strategies to acquire new customers:

 

 

 

Risks facing the business

 

Risk is commonly described as the effect of uncertainty on a company's objectives. Risk or uncertainty may result in a positive or negative outcome.

 

Below is a description of the main risks facing the Company. Only the risks that the Company considers may significantly impact the success or failure of the business have been included.

 

Investors should read this section before deciding to apply for shares under the Offer. There are also other, more general risks associated with the Company (for example, risks relating to general economic conditions or the inability to sell our shares). 

 

The following table is a key risk summary. For a detailed breakdown of the key risks please see section 2.10.1. of the Offer Document.

 

Use of funds

Money raised in this crowd funding round will be used to:

 

  1. Develop new go-to-market channels (in other retail finance sectors), further marketing & PR and further product development/enhancement. 

  2. Hire the right people to develop the new product offerings and scale the broker support team. 

 

Below is a breakdown of HashChing's intended use of funds raised in this round over the next year: 

 

Financial summary

 

For a full breakdown of the financials for HashChing Limited please see section 2.7. and 2.9. of the Offer Document.

 

The following financial summary is comprised of management accounts for HashChing Limited:

 

* Includes R&D offset claims for 2016 and 2017. Excludes R&D offset claims for 2018 and 2019. 

 

* HashChing received $700,000 loan facility from Jobs for NSW in Feb 2018. HashChing did a drawdown of $400,000 in Feb 2018.

Note: "F" denotes forecasted numbers including an expected capital raise of $5,000,000 by 30 June 2018.

Executive summary
Target market
Competitive landscape
Potential returns
Mandeep Sodhi

See profile
Vajira Amarasekera

See profile
Siobhan Hayden

See profile

Replacement Offer Document - HashChing Limited

Replacement CSF Offer Document as at 14th May 2018

Download

The investors below have committed capital to the business in this funding round.

Deon Kruger

13-06-2018

See profile
Hema Gupta

12-06-2018

See profile
Sajeev Gopalakrishnan MAIPM

11-06-2018

See profile
Lalinda Wiratunga

09-06-2018

See profile
Thudugalage Ratnayake

08-06-2018

See profile
RS1203

08-06-2018

BUDDHIPPRIYA SAMARASINGHE

07-06-2018

See profile
AntMc

06-06-2018

David Mikhael

06-06-2018

See profile
Robert Davis

05-06-2018

See profile
Douglas Spiegelhauer

03-06-2018

See profile
PRV

02-06-2018

Jak Nicholls

01-06-2018

See profile
DEIRDRE HINCHCLIFFE

31-05-2018

See profile
Sameer Shrestha

29-05-2018

See profile
hana vano

29-05-2018

See profile
Krishna Gautam

29-05-2018

Simon Chan

28-05-2018

See profile
Elizabeth Lee

27-05-2018

See profile
JA

27-05-2018

Jason Hall

25-05-2018

See profile
freddiemac

25-05-2018

Devanjan Sinha

25-05-2018

See profile
Declan Fee

24-05-2018

Hawka133

24-05-2018

Jagminder Dhandwar

24-05-2018

See profile
Jordan

24-05-2018

Joseph Pudda

24-05-2018

See profile
Jimmy Wolf

23-05-2018

See profile
Nigel Drummond

23-05-2018

See profile
Andrew Gideon

23-05-2018

See profile
ruchirsoni

23-05-2018

Peter Groom

23-05-2018

See profile
Benjamin Lowe

23-05-2018

See profile
Dylan Jobson

22-05-2018

See profile
Pat Sciarrone

22-05-2018

See profile
Roma

22-05-2018

Leng Lai

22-05-2018

See profile
Anthony Dalton

22-05-2018

See profile
Timothy Aitken

22-05-2018

See profile
Andrew Terry

22-05-2018

See profile
Dexter Cousins

21-05-2018

See profile
HARDEEP SODHI

20-05-2018

See profile
Steve Smith

20-05-2018

Sheikh Siddiqui

20-05-2018

See profile
Stephen Bisgrove

18-05-2018

See profile
Michelle Milsom-Wright

18-05-2018

See profile
sunny_boy

18-05-2018

Andrew Walker

18-05-2018

See profile
bbal

17-05-2018

Gaurav Gupta

17-05-2018

See profile
Bishnu Aryal

17-05-2018

See profile
Puneet Taluja

17-05-2018

See profile
Nidhi Taluja

17-05-2018

See profile
Richard Wong

17-05-2018

See profile
Gregory Lozat

17-05-2018

See profile
anonymous

17-05-2018

lungii

17-05-2018

Drcjansen

16-05-2018

Investment Group

16-05-2018

See profile
Andrew

16-05-2018

Zouhair Diab

16-05-2018

See profile
Paul BW Creighton ATF Creighton Holdings Trust

15-05-2018

See profile
Raj Bhattarai

15-05-2018

See profile
Nikhil Sreedhar

15-05-2018

See profile
Delfi

15-05-2018

malcolm gill

15-05-2018

See profile
First Broker

15-05-2018

Warren Leitao

15-05-2018

See profile
Kirill Reztsov

15-05-2018

See profile
Sameer

15-05-2018

Scout

15-05-2018

Gordon Kondo

15-05-2018

See profile
Harsh Patel

15-05-2018

See profile
Kapil Virmani

15-05-2018

See profile
WolfOfLeeStreet

14-05-2018

Joe Gardiner

14-05-2018

See profile
Zain Zama

14-05-2018

See profile
Daxaben Mistry

14-05-2018

See profile
Azm Khan

14-05-2018

See profile
John Chauvel

14-05-2018

See profile
Patrick Tuttle

13-05-2018

See profile
Hu Bi

13-05-2018

See profile
Faisal Muhammad

13-05-2018

See profile
GRM

13-05-2018

Debojyoti Sarker

13-05-2018

See profile
Kejin Li

12-05-2018

See profile
.

12-05-2018

BKMWG

12-05-2018

Yong Fu

12-05-2018

See profile
Kunal Malhotra

12-05-2018

See profile
Collins Mayaki

12-05-2018

See profile
MARTYN WILLIAMS

11-05-2018

See profile
Marc Hillary

11-05-2018

See profile
Ram Valia

11-05-2018

See profile
Michelle Ivanov

11-05-2018

See profile
Subude

11-05-2018

Melanie Burns

11-05-2018

See profile
Julie Chandra

11-05-2018

See profile
Daniel O'Connor

11-05-2018

See profile
Mandeep Sodhi

11-05-2018

See profile
Erez Rachamim

11-05-2018

See profile

 


 


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