Peer to peer investment platform and investment intermediary
|Goji is a development investment platform that focuses solely on the peer to peer (P2P) market. Goji works with platforms to facilitate ISAs and SIPP funds onto P2P platforms, and subsequently retail and institutional money into P2P. Goji is seeking to give investors the ability to invest across multiple platforms, with advanced credit analytics, and manage a P2P portfolio in a single place. Goji will be primarily a back-office intermediary, facilitating investment via other platforms, focusing on key administration and transaction capability to ensure best in class operations at a low cost.|
PRODUCTS & SERVICES
Goji will offer, via P2P platforms themselves (i.e. white-labelled) ISAs, and subsequently SIPPs. Investors will not immediately invest via Goji but via their existing P2P platforms or SIPP operators.
In stage two Goji will develop the front end loan selection and execution capability. In reality, this will be a proof of concept to allow retail and institutional platforms’ clients to invest in P2P either via selecting individual loans (in the case of larger ticket loans) or across a number of platforms in an ‘autobid’ type function.
Goji will empower investors by providing them with the capability to quickly and intelligently select opportunities that suit their investment strategies.
ISAs – platforms cannot currently deliver these as they lack the development capability and regulatory expertise. Businesses don’t want to invest in these systems/capabilities for which a market isn’t proven. Goji will therefore provide outsourced capability at a marginal cost enabling them to capture key ISA funds. SIPPs – operators can’t currently deploy funds efficiently due to due diligence processes. Goji will facilitate this by providing operators with an investment portal that facilitates SIPP investments. Wrap platforms – these can’t integrate with P2P and require an intermediary to facilitate investment enabling them to monetise the P2P opportunity.
The revenue model is based upon P2P platforms paying an integration fee (c.£10,000) and an annual subscription fee (c.£15,000 for ISAs, SIPPs TBC).
Investors will then pay (although platforms may wish to absorb the cost) an account administration fee for each account that is set up each year (c.£60 yr1; c.£30pa after that).
Once full transaction capability is achieved, a per transaction fee of c.0.2% of the transaction value will be charged
To sell a large (or 100%) of the platform to an investment platform, assets manager or foreign P2P player (such as Orchard or PeerIQ) in the US with 3-5 years (unlikely a UK P2P will seek the upstream distribution, they are more likely to purchase borrower origination). Notwithstanding that a sale to PE/IPO would be considered should the platform be successful.
There will be subsequent investment rounds (c.£3-4m in total) to build out the platform and our discussions with our strategic investors has suggested they will be investing now in order to invest in follow on rounds These funders may seek to acquire shares from existing investors during these rounds