IPO - Propell Holdings Limited - 9 April 2021 #, page-12

Board & KMP have more experience in capital markets (with related companies and shareholders) than they do in the lending business. No one other than Harrison or Davidson even have Propell on their LinkedIn profiles. Nice to see them increase lending volumes by 800% off a much smaller bump in marketing in FY18/19. Competition is likely higher now though. 30% of rev still from Government grants. Two 'products' on their platform, the lending product and the transaction product - the transaction product adds nothing compared to competitors. Lending product will never be able to generate better margins than the banks and more advanced non-bank lenders. No stated pathway to internal financing meanwhile their debt financing (from a related party) is charging 11% interest. They get around this by charging rates approaching credit cards and a complex fee structure on the loans which probably dumbfounds easy customers. Current facility is only $2m which hardly seems adequate to fuel growth and further facilities are probably going to be at high rates, and maybe even higher if rates go higher - meanwhile they get no benefit from interest on cash because they don't carry any from clients!. Every fintech investing more in platforms, customer experience etc meanwhile the big banks have got the kick up the ass to do the same.

Only thing I haven't got around to comparing yet is the lifetime loss rate of 4.1%, anyone know how this compares to Prospa?

This business might have been... ok ... three years ago now it just looks like a dog.