DOUUGH LIMITED DOU IPO Analysis

From the prospectus ... Media articles and Company website

https://static.douugh.com/media/Douugh_Prospectus_2020.pdf

https://douugh.com/press/

Douugh

SOI 601 Mil
Cash 6.7 mil
Mcap 18.3 Mil
EV 11.6 Mil
Escrow 299 Mil ..49 % of SOI

Douugh is a purpose-led fin-tech, taking a proprietary artificial intelligence (AI) first approach to disrupting the business model
of banking, helping customers better manage their money and live financially healthier.

It operates a subscription based financial wellness platform, which helps customers spend wisely, save more and build wealth via a
smart bank account and MasterCard debit card.

• Douugh is developing a subscription based, integrated banking and wealth management app which uses AI to help people better manage their money and live financially healthier.
• The App is currently live in the US (invitation only).
• Post completion of the RTO, Douugh will launch the App to the US public market with funds to be applied to marketing and user acquisition.
• The Company also plans to launch to the Australian market in 2021.
• Douugh will release a number of key innovations over the coming months including:
• Autopilot (automating money management needs)
• Wealth Jars (investing money in custom built managed portfolios)
• Card linked BNPL (Buy Now Pay Later) offering
• Douugh is different to most Neo banks – it wholesales the deposit/withdrawal banking function to third party banks, meaning it is capital “lite” and not reliant on large equity issues for treasury funds.
• Douugh makes money on interchange (card transactions) and deposits, and will soon diversify revenue sources into monthly subscription, net interest margin, funds under management and foreign exchange.
• Douugh’s long-term goal is to become a platform business and fully autonomous financial control centre for its customers, which will eventually see it expand into SME banking and payment acceptance.

Douugh is currently executing the first phase of its growth strategy, offering a smart bank account and debit card offering - powered by AI driven insights and money management features under a subscription model.

Under this offering, Douugh customers can connect their existing bank accounts and credit cards to get a single view of their balances, categorize and track expenditure through the Douugh branded account and debit card, send and receive money and track spending targets and savings goals via Douugh proprietary Jars.

Over the next 12 months, following it’s listing on the ASX, Douugh will aim to expand on its product features, by converting to a paid subscription offering that over time, will incorporate the following;
• Wealth Management
• Cashback Rewards
• Credit Score monitoring
• International remittance
• Access to product marketplaces
This model will expose the full functionality of Douugh’s AI technology through insights, guidance and automation over time. Douugh’s future vision for automation is tooling the AI to be able to facilitate money management actions in real-time such as paying bills, budgeting, saving, and investing.

DOU got a excellent management team

Andy Taylor – Founder, Managing Director & CEO .Andy was previously Co-founder & Co-CEO of SocietyOne Australia ...Australia's first peer-to-peer lending company.

Umberto (Bert) Mondello – Non-Executive Director Bert Mondello is an experienced Public Company Director and Corporate Advisor with 20 years experience across both the private and public sectors. Bert is currently the Chairman for Vection Technologies Ltd (ASX: VR1)

Conclusion

Valuation Valuation Valuation

Douugh is priced at 11.6 Mil EV and 18 mil Mcap. It is rare for a fin-tech to have this low EV. It is a start up but it is in a right space.. at the right time and at the right valuation !

It is almost impossible to put a value on a company like this and no traditional valuation tools will be of any use

If I had to hazard a guess, I'd say it can get initial valuation of 24 mil EV which is 5c per share and with customer growth and increasing transaction volume I think it can good traction with traders and short to medium term investors and It can run to 10c and it will still be only 60 Mil Mcap !

Good Luck to All Holders

DYOR

ALL IMO