Forex.co.ke is a localised bank2business foreign exchange transactions platform.

1. Forex.co.ke
Smart Money Bargains

2. Shopping for foreign exchange is a pain.

3. Forex.co.ke takes that pain away.

4. What is the problem?
• Getting quotes is a pain.
• Negotiating a rate is a pain.
• Providing statutory KYC documentation is a pain.
• Settling an agreed transaction is a pain.
BUYING FOREIGN EXCHANGE IS A PAIN!

5. What is the solution?
• Digitise quotation requests
• Digitise bargain discovery
• Digitise KYC documentation retention
• Digitise settlement data exchange
BUYING FOREIGN EXCHANGE WITH FOREX.CO.KE
IS A PLEASURE!

6. Demo
www.forex.co.ke
[BASIC]
We can demonstrate the full un-deployed system.
[COMPREHENSIVE]

7. How big is the market?
• 100M$ a day is traded in Kenya domestically
• 1Bn$ a month is remitted to Kenya from the Kenyan diaspora
• All this money requires conversion, all conversion requires a quote
• Official CBK statistics
The market for foreign exchange in Kenya is 3BN$ a month.

8. What is our business model?
• B2B – link banks to businesses
• Charge businesses flat monthly subscription fee to access the system
e.g.
• Small – 1$ pm
• Medium – 10$ pm
• Large – 100$ pm
• Charge banks a percentage fee of every transaction closed via our
system e.g.
• 0.05% per transaction.

9. What are our competitive advantages?
• Patent pending
• Powerful online brand – forex.co.ke
• Concise
• Relevant
• Memorable
• Inimitable
• Appealing
• Regulatory approval head start
• Software development head start
• Marketplace awareness head start – already talking to banks

10. What is our competition?
• Reuters & Bloomberg terminals
• Old habits die hard
• Better the devil you know
• The big five banks have some marketplace monopolies e.g.
• UNEP will only deal with Citibank
• Many government companies will only trade with government banks
• Potential imitators
• Online banking applications with existing banks
• Reduce hassle but are logically excluded from providing quotes from other
banks!

11. Why are we better than the competition?
• We cost orders of magnitude less than Reuters or Bloomberg
• We link local banks with local businesses
• We give you quotes from many banks
• We give them to you quickly
• We give them to you cheaply
• We enable you to accept and close digitally
• We are a neutral third party

12. What is your marketing plan?
• The big 4 banks control 80 – 85% of the market,
• 43 licensed banks in Kenya
• Remaining 39 banks want a slice!
• Will persuade them to join our platform to
• Increase their market share,
• Cost-effectively,
• Measurably
• Target the small and medium sized banks
• Connect them to Kenyan businesses

13. What is your sales plan?
• To enjoin banks
• Have signed up industry talent to sign up banks
• Incentivized with stock options
• To enjoin businesses
• Resellers program
• Incentivized with revenue share

14. Who is your team?
• Amoroso Gombe – Microelectronics, Liverpool, 10+ years Kenyan
financial IT sector
• Mohammad Ehtesham – Computer science, MBA, 5+ years Kenyan IT
sector, UNEP
• William Todd – Computer science, Cambridge, 20+ years global
financial IT sector
• Hinal Godvinji – Enterprise, 10+ years Kenyan foreign exchange sector

15. How much money do you need & why?
• Key staff – 14M
• General Manager, Technical Manager, Support Manager, Business Development
Manager – Banks, Channel Manager - Resellers
• Accountant
• 24/7 support staff 3 – Bank side, 3 – Client side (8 Hour shifts)
• Operating infrastructure 4.2M
• EC2 cloud hosting
• Office for 8 + computer hardware & software licenses
• Sales &Marketing – 6M
• Advertising & marketing events, media & resellers collateral
• Total – KES 25M / ~ 300K USD

16. What is your break-even point?
• Assume 0.05% transaction fees
• Assume no fees from business customers
• Assume 25% of gross revenue goes to the resellers
• Assume exchange rate of KES 85 = 1 USD
B/E -> 25M <= 85*{0.05% (X)} – 85*{25%[0.05% (X)]}
-> 25m <= 31,875,000 – 25,000,000 WHERE X = 1Bn
Brokering 1Bn$ p.a. is our break even transactions volume

17. Do you have an exchange rate risk?
• Yes, our revenues are earned in dollars and our costs are in shillings
• A shilling depreciation improves our revenue position
• (Vis-à-vis our Kenyan currency cost base)
• A shilling appreciation hurts our revenue position
• Can be hedged against with a forward contract
• Not likely

18. What have you accomplished so far?
• A stabilized product definition
• After years of marketplace iteration
• A working platform
• Preliminary regulatory approval
• Initial engagement with banks & customers

19. How much equity are you offering?
Let’s negotiate!

20. Thank you!
Thank you for giving us the time to present our pitch to you.