Ovanti doesn’t need to raise the full $50M USD upfront. Instead, a staged funding approach makes more sense, especially given the upcoming funds from the IDSB sale. Here's a revised funding strategy that aligns with Ovanti’s expected cash inflows and milestone-based expansion.
Proposed Staged Funding Plan for Ovanti BNPL USA Expansion
Stage 1: Initial Launch & Regulatory Setup (Q1 - Q4 2025)
Funding Needed: $15M - $20M
Source: IDSB sale proceeds + ASX equity raising (if needed)
✅ Legal & Compliance Setup ($5M - $7M)
- Obtain U.S. BNPL state-by-state licenses (initial focus on high-use BNPL regions).
- Build risk & fraud prevention systems to comply with U.S. consumer lending laws.
- Secure partnerships with U.S. financial institutions for payment processing.
✅ Technology Development ($5M - $6M)
- Develop Ovanti BNPL platform, AI-powered risk assessment tools, and mobile app.
- API integration with merchants & payment gateways (Visa, Mastercard, Apple Pay).
- Ensure cybersecurity & fraud prevention capabilities.
✅ Pilot BNPL Transactions & Early Merchant Onboarding ($3M - $5M)
- Target 3 key U.S. states for the initial launch (likely Texas, Florida, and Georgia).
- Onboard regional merchants to validate demand & refine pricing models.
- Initiate early-stage marketing to acquire first 10,000 BNPL users.
Expected Outcome:
- First BNPL transactions by mid-2026.
- $10M - $20M TTV achieved within 12 months.
- Option to raise more capital based on progress.
Stage 2: Expansion to Additional States & Scaling (Q1 - Q4 2026)
Funding Needed: Additional $15M - $20M
Source: ASX capital raise + BNPL revenue reinvestment
✅ Expand into additional high-BNPL states ($5M - $7M)
- Regulatory approvals & compliance in at least 10 U.S. states.
- Hire additional compliance and legal staff to support scale.
✅ Aggressive Customer Acquisition & Merchant Expansion ($7M - $8M)
- Target 50,000 BNPL customers by the end of 2026.
- Partner with national retailers ($200M+ turnover) to drive adoption.
- Digital marketing: Google, Facebook, TikTok, influencer promotions.
✅ Operational Growth & Risk Management ($3M - $5M)
- Enhance AI-driven credit risk models to minimize defaults.
- Establish a customer support team for U.S. operations.
- Launch BNPL for everyday expenses (bills, groceries, medical).
Expected Outcome:
- $50M TTV milestone achieved in 18-24 months.
- Preferred BNPL provider for at least 1 large U.S. retailer.
- Well-positioned for next capital raise (if needed).
Stage 3: National Expansion & Scaling to $500M TTV (Q1 2027 – Q4 2027)
Funding Needed: Additional $10M - $15M (if necessary)
Source: Internal BNPL profits + institutional investment
✅ Expand Ovanti BNPL to all 50 U.S. states ($5M - $7M)
- Fully licensed across the top 15 BNPL markets.
- Top 5 BNPL provider in at least one state.
✅ Secure Multi-Year Retailer Partnerships ($3M - $5M)
- Target partnerships with retailers with $500M+ annual revenue.
- Make Ovanti the exclusive BNPL option at select stores.
✅ Introduce Business BNPL (B2B Model)
- Expand BNPL services to small businesses needing short-term financing.
- Further monetization opportunities beyond consumers.
Expected Outcome:
- $200M TTV achieved by early 2027.
- $500M TTV achieved by Q4 2027.
- Ovanti’s valuation rises to AUD $500M+.
Final Funding Summary
| Stage | Timeframe | Funding Needed | Source |
|---|
| Stage 1 (Initial Setup & Pilot) | 2025 | $15M - $20M | IDSB Sale + ASX Raising |
| Stage 2 (Expansion & Scaling) | 2026 | $15M - $20M | ASX Capital Raise + BNPL Revenue |
| Stage 3 (National Growth) | 2027 | $10M - $15M (if needed) | Internal Profits + Institutional Investment |
| Total Estimated Funding | 2025 - 2027 | $40M - $50M (in stages) |
|
Key Benefits of Staged Funding
✅ Reduces upfront capital risk – no need to raise all $50M at once.
✅ Utilizes internal cash flow from BNPL operations as business scales.
✅ Flexibility to adjust funding needs based on real-time market performance.
✅ Leverages IDSB sale proceeds instead of immediate heavy dilution.
Next Steps
- Finalize BNPL strategy & regulatory approvals.
- Use IDSB sale funds for initial BNPL buildout.
- Start pilot transactions & evaluate scaling options.
- Raise additional capital in phases as traction grows.
This staged funding approach ensures Ovanti can execute its U.S. BNPL expansion with financial discipline while maximizing returns for investors.
(20min delay)