PledgeMe.Investment

Technology,



NZ $4,000 pledged


3 people pledged


29 days left


NZ $200,000 minimum target


Min

NZ$200,000

Max

NZ$2,000,000

2 2% Complete

Pledges will only be confirmed if the target is reached by: 25/07/2022 at 12:00 PM (NZST)

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About

PayAid

How PayAid was born

PayAid was created to disrupt New Zealand’s short-term lending scene, which, in our opinion, is outdated, inefficient and lacks innovation. Most traditional payday loan providers charge compounding interest rates. Together with layers of fees (such as late payment fees, establishment fees, extension fees, etc.), these old-school practices make it difficult for customers to get out of the debt cycle, especially for those living from paycheck to paycheck.


Our solution

PayAid is introducing an innovative, lower-cost financing solution to New Zealand. PayAid provides Kiwis with early access to a portion of their salary (pay advance) right from their phones. All this at a fixed fee of 5% per advance and no other hidden or late fees. When you get $100 from us you only repay $105 - nothing more.


Our straightforward process takes only a few minutes to complete and is paperless. Once the user has finished the sign-up process on the app - which takes about five minutes - we will calculate the user's advance limit and pay the chosen amount to their bank account.


PayAid is also a budgeting app that helps customers effectively manage expenses by understanding where their money is spent. A customer can allocate their budget to different expense categories and our algorithm will automatically update their budget as they spend. Our app will send them a notification when they are about to exceed their budget, allowing our customers to make better financial decisions.

 

Our vision

With our innovative approach to personal finance, PayAid aims to be the preferred choice for pay advance services, helping Kiwis manage their finances with ease.

Company overview

PayAid is planning to offer its consumers a better way to manage their finances by providing an alternative version of consumer credit that breaks away from traditional financial practices. PayAid is designed to provide its customers with pay advance services that allow them to get immediate access to a portion of their upcoming salary without having to rely on credit cards or other forms of debt.

PayAid approaches consumer credit in an alternative way, offering our users:

Short-term pay advance services, designed to give the consumer breathing room until their next payday or to fulfil urgent needs.

 
A straightforward, automated application process through a mobile application to allow customers an effortless way to receive a pay advance.

 
A simple, transparent fee structure of a fixed one-time charge, no late fees and no interest.

 
Budgeting tools to provide the customer with financial insights, allowing them to save and spend smarter.

 
Affordability assessment of each advance, using algorithms to compare the customer expense to their income. this ensures they never get more credit than they can afford.  

 


PayAid is primarily designed to support people who live from paycheck to paycheck or need some extra cash. We are committed to designing a business model that is easy to use and has a fair approach to finance.

 

 

Revenue model

PayAid plans to generate its revenue through customer fees. PayAid will provide its customers with access to a portion of their pay in advance (Pay Advance Service) for a fixed 5% transaction fee on the total advance. There will be no interest, no late fees, and no hidden charges. We estimate that $200-250 will be the average cash out amount.

Our product

The ID process only takes place at the registration. The returning customers do not have to prove their identity again, meaning they can cash out faster. However, if a user has been inactive for more than 30 days, they will need to reconnect their bank account.


Customer eligibility

Once the App is publicly available, the users wishing to use our service will have to meet eligibility criteria. The user must:

Be a New Zealand citizen or resident or hold a valid work visa

Have work income in their bank account of at least $450 per week

Have a New Zealand Drivers Licence or Passport

Be over 18 years of age

 

 

Use case

PayAid service has a broad use case. Customers can use their advance for any purpose as the funds are deposited directly into their bank accounts. 

Unlike Buy Now Pay Later services, which tie the customer’s funds to specific purchases, PayAid gives the customer freedom to use their funds however they see fit, whether it is for rent, holiday shopping or utility bills.

 


Benefits

According to our preliminary market research, in which we interviewed 20 potential customers, the most appealing attributes of our service are highlighted below:

Ease-of-use and speed: users register on their mobiles and get approved in seconds. 

Innovativeness: the budgeting tool is an attractive bonus point

Affordability: 5% transaction fee is manageable 

Flexibility: users can spend money on whatever they need 

 

Technology overview

 

PayAid has created a solution by combining our proprietary technology and several APIs from our providers, seeking to simplify and improve Kiwis’ access to credit.

Our easy and seamless sign-up process is the key attribute helping us appeal to a wide demographic. PayAid is designed to be as automated as possible to reduce the time and hassle of retrieving credit.

To achieve this, we selectively outsource certain functions where it is cost-effective, such as bank statement retrieval, ID verification, and direct debit application.

 

We have developed four core pieces of technology for the App:

 

Seamless verification: API integration allows us to instantly retrieve a user’s bank statement and check their provided ID against the government databases. By doing so, PayAid can offer a user-friendly experience while maintaining its low prices.

Pay cycle detection: our algorithm detects when the user gets paid, aligns the repayment schedule with the paycheck to make it easier for the customer to repay, and lowers the chance of debit failure.

Expense categories: user’s expenses are sorted into 20 categories, e.g. groceries, rent, utilities, travel. We then use these categories in the affordability calculator and the budgeting tool.

Affordability calculator: using data points we calculate users average spending on the necessities (rent, utilities, groceries, transportation). Then, to find the maximum cash out limit we compare the average essential expenses to their salary. PayAid retrieves this information using Illion bank statement retrieval.

 

 

What we have achieved

Even before COVID-19, we observed that people in New Zealand were struggling to get affordable credit. Unfortunately, the pandemic didn’t make the situation any better.

One article from Finder captured our attention, stating that one out of three Kiwis is living paycheque to paycheque. Surprisingly, an initial search showed no current credit providers in New Zealand offering affordable and accessible solutions.

The idea of bringing a straightforward, flat-rate pay advance service to New Zealand was born. We then started developing a business model, and in June 2021, we established PayAid Ltd.

Since then, we have self-funded and received private investment for research, development, branding, office rental and legal fees.

Future Milestones
Some of the upcoming milestones we are looking forward to are:


Market Size

 

After comparing the target market profile to our criteria for customer eligibility, we calculate the total number of potential customers to be 511,000. Early adopters must be likely to try new technology and have a stable income from a job. Those with personal income between $20,000 - $70,000 are most likely to use our service.


Those who earn less might not be eligible, while those who make more might not require our service. Additionally, those who live in more populated areas are more likely to learn of our service due to the marketing exposure.


We use data from similar services in Australia to determine our penetration rate.


As of November 2021, 8% of Australians, specifically 22% of Gen Z and 11% of Millennials, have used pay-on-demand services at least once.


Considering that pay-on-demand was introduced in Australia around 2019 & that PayAid will have the first-mover advantage, we estimate the penetration rate for PayAid in the first year to be 4% - 6% of the target market.


Thus, our expected market volume in the first year is approximately 20,000 - 30,000 active users.

Our team

Advisors

 

 

Offer

WHY WE ARE CROWDFUNDING

When you build a product for the people, it only makes sense that it's the people that get an opportunity to invest and be a part of the success.

We genuinely believe that PayAid is a service that will help the people of New Zealand. No one should ever feel stuck when they need money, not when they have a job and work hard.

So as we raise our funding round, we want to do so with a public crowdfunding campaign instead of private investment money. Unlike traditional investing, public crowdfunding means that anyone can be involved, rather than only a few wealthy individuals.

 

We're raising a minimum of $200,000 and a maximum of $2,000,000 and eligible investors can get involved for as little as $500.

KEY OFFER DETAILS

We are offering up to 2,000,000 shares at $1.00 each. The minimum total amount required to be raised under this offer is $200,000 (200,000 shares).

Shares issued through this crowdfunding will be non-voting ordinary shares, ranking equally with all other existing non-voting ordinary shares and carrying the rights listed below. Our nominee company, PayAid Nominee Shareholding Limited, will hold legal title to these shares on trust for investors under this offer.

1. The right to an equal share in dividends and other distributions made by PayAid Limited (subject to the rights of any other class of share).
2. The right to an equal share in the distribution of surplus assets of PayAid Limited. You can read more about the rights attached to shares in our Constitution.

VALUATION:

We have raised $210,000 from early investors and our advisors at $10,000,000 valuation earlier in 2022. Since then we have completed the app development and started live testing of the App. Our pre-money valuation of $20,420,000 has been created with the help of our advisors and the Equidam valuation platform. It is based on Scorecard, and Venture Capital valuation methods. The average of both methods has been used as pre-money valuation.

WHAT WE WILL DO WITH THE MONEY


If we only raise the minimum in this round, that will allow us to launch the app and operate for at least 3 months.
We’ll do most of the work in-house with help from our contractors. In this case, we will be raising more capital once the app is live to get the necessary lending capital.

If the maximum is raised, we’ll be able to do a full scale launch of the app as projected. In this scenario, we'll have a higher advertising & operational budget that will allow us to attract a higher number of users and operate according to our projections.

RETURNS

There are currently no dividends paid to shareholders, but once we hit profitability the Board will review this. Over the next few years, we plan to invest heavily in growth.

If shareholders do want to buy or sell shares, they can register interest with us, and we can manage the buying and selling of shares. We cannot guarantee that there will be buyers or sellers available.

 

Risks & Mitigations

RISKS HOW WE WILL MITIGATE THEM
API Services or Application issues We have sufficient backups and recovery procedures to restore the app in a timely manner.

Outsourced API services generate less control over potential downtime Close collaboration, periodical alignment meetings, and joint/integrated planning with API providers

Cash flow issues Plan well ahead, have good financial planning and, as far as possible, ensure the company is not underfunded. Potential future lending capital raises

Cyber attacks Partnering up with Amazon Web Services for cloud hosting to improve security

Customers who may not pay their financial obligations
Continuous analysis of users’ bank accounts before their next cash-out


Low brand awareness

Multiple marketing campaigns to increase exposure

Staffing Issues, failure to find employees If we fail to find specialised developers in NZ we will look for developers overseas

New direct competitor enters the market We will have the advantage of being present in the market first. We plan to continue working on our services to offer the best possible product

Business model that competitors can copy Continuous market research on client’s needs and constant R&D investment to add more features and products in the future

Potential litigation, claims

Insurance policy and Business Continuity strategy

 

Warning Statement

 

This document has been prepared by PayAid Limited. The purpose of this document is for information in relation to the PayAid Limited share offer on PledgeMe. All efforts have been made to ensure the accuracy and reliability of the content as of the date of this document. PledgeMe is licensed and regulated by the Financial Markets Authority, and the share offer made by PayAid Limited will only be available for acceptance through the PledgeMe website.

Equity crowdfunding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative
and carries high risks. You may lose your entire investment and must be in a position to bear this risk without undue hardship. 

New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.

A NOTE FROM PLEDGEME

We have completed Equifax checks on PayAid Limited and PayAid Nominee Shareholding Company Limited as well as their directors and beneficial owners. We have also completed Google and Insolvency checks and Enhanced Due Diligence on the company Directors as required. There were no adverse findings.

Updates

Hey! Thanks for checking out this project.

We haven't made any updates yet, follow us if you want to be notified when we do.

Details

Offer Details

Current Valuation 20,420,000
Raise Minimum 200,000
Raise Maximum 2,000,000
Share Price 1.00
Minimum Pledge 500.00
Maximum Shares Offered 2,000,000
Explanation of valuation:

We have raised $210,000 from early investors and our advisors at $10,000,000 valuation earlier in 2022. Since then we have completed the app development and started live testing of the App. Our pre-money valuation of $20,420,000 has been created with the help of our advisors and the Equidam valuation platform. It is based on Scorecard, Venture Capital valuation methods. The average of both methods has been used as pre-money valuation.

Financial Summary

Prev Year Current Year Est. FY 2024 Est. FY 2025
Revenue NZ $0 NZ $0 NZ $1,323,699 NZ $5,025,904
Operating Expenses -NZ $11,097 -NZ $25,500 -NZ $1,021,356 -NZ $1,844,096
EBITDA -NZ $11,097 -NZ $25,500 NZ $26,724 NZ $2,675,965
Net Profit -NZ $11,097 -NZ $25,500 NZ $16,216 NZ $1,915,210

Company Details

Company Name: PayAid Ltd

Company Number: 8186661

Company Documents

CoyExtract_PayAid_8186661_13June2022.pdf

(application/pdf, 745 KB, uploaded 13 June 2022)

CertIncorporation_PayAid_8186661_13June2022.pdf

(application/pdf, 588 KB, uploaded 13 June 2022)

Nominee_Company_Constitution_PayAid_Nominee_Shareholding_Limited.docx.pdf

(application/pdf, 157 KB, uploaded 19 June 2022)

PayAid_Ltd_Company_Constitution.docx.pdf

(application/pdf, 158 KB, uploaded 19 June 2022)

PayAid_Shareholders_Agreement.pdf

(application/pdf, 23.8 MB, uploaded 22 June 2022)

Information_Memorandum_-_PayAid.pdf

(application/pdf, 10.4 MB, uploaded 23 June 2022)

Director Details

Name Role Profile URL Invested?
Laurie Chaplin Director https://pldg.me/PayAid-Directors
Andrey Korzh Director https://pldg.me/PayAid-Directors

Questions 1

Ask a Question (You must login to ask a question)


I have a few questions.

The I.M states you have raised $210,000 at a $10M valuation from "early investors and advisors earlier in 2022"

1: How are you able to justify raising at double this valuation only months later?

The only explanation of your valuation is:

"Our pre-money valuation of $20,420,000 has been created with the help of our advisors and the Equidam valuation platform. It is based on Scorecard, Venture Capital valuation methods."

2: How do you specifically derive your company valuation using these methods? I would like to see these calculations.

Looking at the financials all I can see for FY 2021/22 and FY 2022/23 are losses of $261,097.

On top of this there is $78,219 in liabilities to the company from outstanding business and shareholder loans. If I'm not mistaken this is a total net liability of $339,316. ($261,097+$78,219)

Total assets are stated as $274,301 comprised of $122,693 as cash and $151,608 in intangible assets.

By subtracting Total Net Liabilities from Total Net Assets this indicates the company currently has a Total Net Equity position of -$65,015.

3: Given this, please can you clarify how you justify a $20.420M valuation?

Note:

The figures shown on the Financial Summary section on PledgeMe differs from the figures shown in the Financials section of the Information Memorandum.

Shouldn’t the Financial Summary section on PledgeMe be updated to reflect what is also shown in the Information Memorandum?

It states a Net Profit of -$25,500 on the Financial Summary section, but states a Net Profit of -$250,000 in the Information Memorandum for the FY 2022/23.

Posted on 25-06-2022 by Tim

Pledgers 3

Marvin Lewis Mackey
2022-06-25 08:28:21 +1200
Cuong Tran
2022-06-24 12:43:26 +1200
Otto
2022-06-24 12:26:53 +1200

Followers 3

Followers of PayAid

PayAid

How PayAid was born

PayAid was created to disrupt New Zealand’s short-term lending scene, which, in our opinion, is outdated, inefficient and lacks innovation. Most traditional payday loan providers charge compounding interest rates. Together with layers of fees (such as late payment fees, establishment fees, extension fees, etc.), these old-school practices make it difficult for customers to get out of the debt cycle, especially for those living from paycheck to paycheck.


Our solution

PayAid is introducing an innovative, lower-cost financing solution to New Zealand. PayAid provides Kiwis with early access to a portion of their salary (pay advance) right from their phones. All this at a fixed fee of 5% per advance and no other hidden or late fees. When you get $100 from us you only repay $105 - nothing more.


Our straightforward process takes only a few minutes to complete and is paperless. Once the user has finished the sign-up process on the app - which takes about five minutes - we will calculate the user's advance limit and pay the chosen amount to their bank account.


PayAid is also a budgeting app that helps customers effectively manage expenses by understanding where their money is spent. A customer can allocate their budget to different expense categories and our algorithm will automatically update their budget as they spend. Our app will send them a notification when they are about to exceed their budget, allowing our customers to make better financial decisions.

 

Our vision

With our innovative approach to personal finance, PayAid aims to be the preferred choice for pay advance services, helping Kiwis manage their finances with ease.

Company overview

PayAid is planning to offer its consumers a better way to manage their finances by providing an alternative version of consumer credit that breaks away from traditional financial practices. PayAid is designed to provide its customers with pay advance services that allow them to get immediate access to a portion of their upcoming salary without having to rely on credit cards or other forms of debt.

PayAid approaches consumer credit in an alternative way, offering our users:

Short-term pay advance services, designed to give the consumer breathing room until their next payday or to fulfil urgent needs.

 
A straightforward, automated application process through a mobile application to allow customers an effortless way to receive a pay advance.

 
A simple, transparent fee structure of a fixed one-time charge, no late fees and no interest.

 
Budgeting tools to provide the customer with financial insights, allowing them to save and spend smarter.

 
Affordability assessment of each advance, using algorithms to compare the customer expense to their income. this ensures they never get more credit than they can afford.  

 


PayAid is primarily designed to support people who live from paycheck to paycheck or need some extra cash. We are committed to designing a business model that is easy to use and has a fair approach to finance.

 

 

Revenue model

PayAid plans to generate its revenue through customer fees. PayAid will provide its customers with access to a portion of their pay in advance (Pay Advance Service) for a fixed 5% transaction fee on the total advance. There will be no interest, no late fees, and no hidden charges. We estimate that $200-250 will be the average cash out amount.

Our product

The ID process only takes place at the registration. The returning customers do not have to prove their identity again, meaning they can cash out faster. However, if a user has been inactive for more than 30 days, they will need to reconnect their bank account.


Customer eligibility

Once the App is publicly available, the users wishing to use our service will have to meet eligibility criteria. The user must:

Be a New Zealand citizen or resident or hold a valid work visa

Have work income in their bank account of at least $450 per week

Have a New Zealand Drivers Licence or Passport

Be over 18 years of age

 

 

Use case

PayAid service has a broad use case. Customers can use their advance for any purpose as the funds are deposited directly into their bank accounts. 

Unlike Buy Now Pay Later services, which tie the customer’s funds to specific purchases, PayAid gives the customer freedom to use their funds however they see fit, whether it is for rent, holiday shopping or utility bills.

 


Benefits

According to our preliminary market research, in which we interviewed 20 potential customers, the most appealing attributes of our service are highlighted below:

Ease-of-use and speed: users register on their mobiles and get approved in seconds. 

Innovativeness: the budgeting tool is an attractive bonus point

Affordability: 5% transaction fee is manageable 

Flexibility: users can spend money on whatever they need 

 

Technology overview

 

PayAid has created a solution by combining our proprietary technology and several APIs from our providers, seeking to simplify and improve Kiwis’ access to credit.

Our easy and seamless sign-up process is the key attribute helping us appeal to a wide demographic. PayAid is designed to be as automated as possible to reduce the time and hassle of retrieving credit.

To achieve this, we selectively outsource certain functions where it is cost-effective, such as bank statement retrieval, ID verification, and direct debit application.

 

We have developed four core pieces of technology for the App:

 

Seamless verification: API integration allows us to instantly retrieve a user’s bank statement and check their provided ID against the government databases. By doing so, PayAid can offer a user-friendly experience while maintaining its low prices.

Pay cycle detection: our algorithm detects when the user gets paid, aligns the repayment schedule with the paycheck to make it easier for the customer to repay, and lowers the chance of debit failure.

Expense categories: user’s expenses are sorted into 20 categories, e.g. groceries, rent, utilities, travel. We then use these categories in the affordability calculator and the budgeting tool.

Affordability calculator: using data points we calculate users average spending on the necessities (rent, utilities, groceries, transportation). Then, to find the maximum cash out limit we compare the average essential expenses to their salary. PayAid retrieves this information using Illion bank statement retrieval.

 

 

What we have achieved

Even before COVID-19, we observed that people in New Zealand were struggling to get affordable credit. Unfortunately, the pandemic didn’t make the situation any better.

One article from Finder captured our attention, stating that one out of three Kiwis is living paycheque to paycheque. Surprisingly, an initial search showed no current credit providers in New Zealand offering affordable and accessible solutions.

The idea of bringing a straightforward, flat-rate pay advance service to New Zealand was born. We then started developing a business model, and in June 2021, we established PayAid Ltd.

Since then, we have self-funded and received private investment for research, development, branding, office rental and legal fees.

Future Milestones
Some of the upcoming milestones we are looking forward to are:


Market Size

 

After comparing the target market profile to our criteria for customer eligibility, we calculate the total number of potential customers to be 511,000. Early adopters must be likely to try new technology and have a stable income from a job. Those with personal income between $20,000 - $70,000 are most likely to use our service.


Those who earn less might not be eligible, while those who make more might not require our service. Additionally, those who live in more populated areas are more likely to learn of our service due to the marketing exposure.


We use data from similar services in Australia to determine our penetration rate.


As of November 2021, 8% of Australians, specifically 22% of Gen Z and 11% of Millennials, have used pay-on-demand services at least once.


Considering that pay-on-demand was introduced in Australia around 2019 & that PayAid will have the first-mover advantage, we estimate the penetration rate for PayAid in the first year to be 4% - 6% of the target market.


Thus, our expected market volume in the first year is approximately 20,000 - 30,000 active users.

Our team

Advisors

 

 

Offer

WHY WE ARE CROWDFUNDING

When you build a product for the people, it only makes sense that it's the people that get an opportunity to invest and be a part of the success.

We genuinely believe that PayAid is a service that will help the people of New Zealand. No one should ever feel stuck when they need money, not when they have a job and work hard.

So as we raise our funding round, we want to do so with a public crowdfunding campaign instead of private investment money. Unlike traditional investing, public crowdfunding means that anyone can be involved, rather than only a few wealthy individuals.

 

We're raising a minimum of $200,000 and a maximum of $2,000,000 and eligible investors can get involved for as little as $500.

KEY OFFER DETAILS

We are offering up to 2,000,000 shares at $1.00 each. The minimum total amount required to be raised under this offer is $200,000 (200,000 shares).

Shares issued through this crowdfunding will be non-voting ordinary shares, ranking equally with all other existing non-voting ordinary shares and carrying the rights listed below. Our nominee company, PayAid Nominee Shareholding Limited, will hold legal title to these shares on trust for investors under this offer.

1. The right to an equal share in dividends and other distributions made by PayAid Limited (subject to the rights of any other class of share).
2. The right to an equal share in the distribution of surplus assets of PayAid Limited. You can read more about the rights attached to shares in our Constitution.

VALUATION:

We have raised $210,000 from early investors and our advisors at $10,000,000 valuation earlier in 2022. Since then we have completed the app development and started live testing of the App. Our pre-money valuation of $20,420,000 has been created with the help of our advisors and the Equidam valuation platform. It is based on Scorecard, and Venture Capital valuation methods. The average of both methods has been used as pre-money valuation.

WHAT WE WILL DO WITH THE MONEY


If we only raise the minimum in this round, that will allow us to launch the app and operate for at least 3 months.
We’ll do most of the work in-house with help from our contractors. In this case, we will be raising more capital once the app is live to get the necessary lending capital.

If the maximum is raised, we’ll be able to do a full scale launch of the app as projected. In this scenario, we'll have a higher advertising & operational budget that will allow us to attract a higher number of users and operate according to our projections.

RETURNS

There are currently no dividends paid to shareholders, but once we hit profitability the Board will review this. Over the next few years, we plan to invest heavily in growth.

If shareholders do want to buy or sell shares, they can register interest with us, and we can manage the buying and selling of shares. We cannot guarantee that there will be buyers or sellers available.

 

Risks & Mitigations

RISKS HOW WE WILL MITIGATE THEM
API Services or Application issues We have sufficient backups and recovery procedures to restore the app in a timely manner.

Outsourced API services generate less control over potential downtime Close collaboration, periodical alignment meetings, and joint/integrated planning with API providers

Cash flow issues Plan well ahead, have good financial planning and, as far as possible, ensure the company is not underfunded. Potential future lending capital raises

Cyber attacks Partnering up with Amazon Web Services for cloud hosting to improve security

Customers who may not pay their financial obligations
Continuous analysis of users’ bank accounts before their next cash-out


Low brand awareness

Multiple marketing campaigns to increase exposure

Staffing Issues, failure to find employees If we fail to find specialised developers in NZ we will look for developers overseas

New direct competitor enters the market We will have the advantage of being present in the market first. We plan to continue working on our services to offer the best possible product

Business model that competitors can copy Continuous market research on client’s needs and constant R&D investment to add more features and products in the future

Potential litigation, claims

Insurance policy and Business Continuity strategy

 

Warning Statement

 

This document has been prepared by PayAid Limited. The purpose of this document is for information in relation to the PayAid Limited share offer on PledgeMe. All efforts have been made to ensure the accuracy and reliability of the content as of the date of this document. PledgeMe is licensed and regulated by the Financial Markets Authority, and the share offer made by PayAid Limited will only be available for acceptance through the PledgeMe website.

Equity crowdfunding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative
and carries high risks. You may lose your entire investment and must be in a position to bear this risk without undue hardship. 

New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.

A NOTE FROM PLEDGEME

We have completed Equifax checks on PayAid Limited and PayAid Nominee Shareholding Company Limited as well as their directors and beneficial owners. We have also completed Google and Insolvency checks and Enhanced Due Diligence on the company Directors as required. There were no adverse findings.

Hey! Thanks for checking out this project.

We haven't made any updates yet, follow us if you want to be notified when we do.

Offer Details

Current Valuation 20,420,000
Raise Minimum 200,000
Raise Maximum 2,000,000
Share Price 1.00
Minimum Pledge 500.00
Maximum Shares Offered 2,000,000
Explanation of valuation:

We have raised $210,000 from early investors and our advisors at $10,000,000 valuation earlier in 2022. Since then we have completed the app development and started live testing of the App. Our pre-money valuation of $20,420,000 has been created with the help of our advisors and the Equidam valuation platform. It is based on Scorecard, Venture Capital valuation methods. The average of both methods has been used as pre-money valuation.

Financial Summary

Prev Year Current Year Est. FY 2024 Est. FY 2025
Revenue NZ $0 NZ $0 NZ $1,323,699 NZ $5,025,904
Operating Expenses -NZ $11,097 -NZ $25,500 -NZ $1,021,356 -NZ $1,844,096
EBITDA -NZ $11,097 -NZ $25,500 NZ $26,724 NZ $2,675,965
Net Profit -NZ $11,097 -NZ $25,500 NZ $16,216 NZ $1,915,210

Company Details

Company Name: PayAid Ltd

Company Number: 8186661

Company Documents

CoyExtract_PayAid_8186661_13June2022.pdf

(application/pdf, 745 KB, uploaded 13 June 2022)

CertIncorporation_PayAid_8186661_13June2022.pdf

(application/pdf, 588 KB, uploaded 13 June 2022)

Nominee_Company_Constitution_PayAid_Nominee_Shareholding_Limited.docx.pdf

(application/pdf, 157 KB, uploaded 19 June 2022)

PayAid_Ltd_Company_Constitution.docx.pdf

(application/pdf, 158 KB, uploaded 19 June 2022)

PayAid_Shareholders_Agreement.pdf

(application/pdf, 23.8 MB, uploaded 22 June 2022)

Information_Memorandum_-_PayAid.pdf

(application/pdf, 10.4 MB, uploaded 23 June 2022)

Director Details

Name Role Profile URL Invested?
Laurie Chaplin Director https://pldg.me/PayAid-Directors
Andrey Korzh Director https://pldg.me/PayAid-Directors

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I have a few questions.

The I.M states you have raised $210,000 at a $10M valuation from "early investors and advisors earlier in 2022"

1: How are you able to justify raising at double this valuation only months later?

The only explanation of your valuation is:

"Our pre-money valuation of $20,420,000 has been created with the help of our advisors and the Equidam valuation platform. It is based on Scorecard, Venture Capital valuation methods."

2: How do you specifically derive your company valuation using these methods? I would like to see these calculations.

Looking at the financials all I can see for FY 2021/22 and FY 2022/23 are losses of $261,097.

On top of this there is $78,219 in liabilities to the company from outstanding business and shareholder loans. If I'm not mistaken this is a total net liability of $339,316. ($261,097+$78,219)

Total assets are stated as $274,301 comprised of $122,693 as cash and $151,608 in intangible assets.

By subtracting Total Net Liabilities from Total Net Assets this indicates the company currently has a Total Net Equity position of -$65,015.

3: Given this, please can you clarify how you justify a $20.420M valuation?

Note:

The figures shown on the Financial Summary section on PledgeMe differs from the figures shown in the Financials section of the Information Memorandum.

Shouldn’t the Financial Summary section on PledgeMe be updated to reflect what is also shown in the Information Memorandum?

It states a Net Profit of -$25,500 on the Financial Summary section, but states a Net Profit of -$250,000 in the Information Memorandum for the FY 2022/23.

Posted on 25-06-2022 by Tim

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