MOVO
ON-DEMAND Mobile Banking with End-to-End CONTACTLESS Payments
Overview
Raised: $0
Rolling Commitments ($USD)
08/11/2021
$0
2014
Financial & Insurance Products & Services
Fintech
B2C
Low
Low
Summary Profit and Loss Statement
Most Recent Year | Prior Year | |
---|---|---|
Revenue |
$5,557,915 |
$1,625,862 |
COGS |
$3,213,563 |
$1,644,356 |
Tax |
$1,478 |
$3,447 |
| ||
| ||
Net Income |
$-374,186 |
$-2,879,785 |
Summary Balance Sheet
Most Recent Year | Prior Year | |
---|---|---|
Cash |
$183,265 |
$46,542 |
Accounts Receivable |
$1,903,456 |
$212,783 |
Total Assets |
$45,334,583 |
$3,162,169 |
Short-Term Debt |
$44,867,224 |
$3,269,361 |
Long-Term Debt |
$937,737 |
$219,000 |
Total Liabilities |
$45,804,961 |
$3,488,361 |
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Synopsis
Banking can be a fragmented and frustrating experience. While there are plenty of money transfer apps and even cryptocurrency trading platforms, it’s difficult to find one financial institution that handles every financial need a customer could have.
MOVO wants to change that. The company offers on-demand mobile banking services with end-to-end contactless payments all in one app. Its digital payment tokens can be used at more than 1 million ATMs and for 45 million merchants across the globe. MOVO’s patent-pending HyperBIN ecosystem technology is compatible with near-field communication wallets like Apple Pay and PayPal, and its accounts are FDIC-insured. The company utilizes blockchain, distributed ledger technologies, and cryptographic and AI technologies on its platform.
MOVO’s current StartEngine raise has been rated a Deal to Watch by the KingsCrowd investment team.
Price
MOVO is raising at a $150 million pre-money valuation. Though the company has generated impressive traction in recent years, this price is excessive. So our system has rated MOVO’s price near the low end of the scale.
Market
The global banking industry is massive, with trillions of dollars in assets at stake. In terms of actual revenue opportunity, MOVO fits into a few different niches. One of these is the global online banking market. In 2019, that market was worth $11.4 billion. It is expected to grow at a rate of 13.6% per annum to reach $31.8 billion by 2027. A second source estimated the market size at $9.1 billion in 2020, rising by 12.3% per annum to reach $20.5 billion by 2026. Another market opportunity for the company is the blockchain finance space, which was worth $5.8 billion in 2020 and is projected to grow at a rate of 33.6% per annum through 2026. That would take it to $33.2 billion by the end of the forecast period. The company is also targeting the global mobile payments market. One source estimated that market to be worth $31.5 billion in 2020. It forecasted the industry to grow at a rate of 31.8% per annum, taking it to $273.1 billion by 2028.
Overall, MOVO is operating in a large space at the intersection of multiple attractive niches. The significant size and rapid growth of the industry warrants a high market rating on our scale.
Team
MOVO founder and CEO Eric Solis founded the company in 2014. Prior to starting MOVO, Solis was the principal of his own consulting business for financial technology companies. This included work in product development, loyalty programs, merchant processing, and more. Before that, he was the founder and CEO of SAVE252 Systems, a company focused on technology solutions for the underbanked. It also focused on aggregating and managing processing and other banking activities. Solis was also the founder and CEO of SaveDaily.com, which provided a low-cost private label platform that enabled financial institutions to offer higher-end financial services to anyone. He also served as CEO of Solis Investment Group, an investment advisory firm.
There are no other co-founders behind the MOVO brand, but the company does have a team of people with significant experience across a wide range of areas — including marketing, corporate development, financial technology, IT, compliance, and more. Because of Solis’ extensive expertise and the experienced team behind him, our system has rated MOVO’s team near the very high end of our scale.
Differentiators
There are a number of financial technology apps on the market today, but none of them seem to offer the same range of features as MOVO does. For instance, plenty of investment or mobile wallet apps allow for the purchasing and trading of cryptocurrency, including Coinbase and Robinhood. There are also a number of cash transfer apps for peer-to-peer and business transfers like Venmo and Cash App. There are also plenty of banking apps on the market. But MOVO is more or less all of these rolled up into one. Because of this, our system has rated the differentiation of the company well above average on our one-to-five scale.
Performance
Not only does MOVO offer at least seven different integrated banking, payments, and blockchain solutions available, but it also has a comprehensive platform built around these solutions. On top of this, it is generating a significant amount of revenue and is growing rapidly. Revenue in 2019 came out to $1.6 million, which surged to about $5.6 million in 2020. Over the same period of time, the business saw its net loss shrink from $2.9 million to $374,186, and its operating cash outflows improved from nearly $3 million to $663,620. Due to these factors, our system has rated the performance of the business near the very high end of our scale.
Risks
Our system rated MOVO’s risk profile as being only slightly below average as a result of three subcategories. The first of these is team risk. While the MOVO team is stellar, the business revolves around only one key founder. As impressive as Solis may be, it is unclear what would happen to MOVO if he ceased to be involved for any particular reason. That creates a certain degree of risk for investors.
Another elevated category is the market. MOVO operates in a highly regulated space where the competition is fierce. While the business is growing rapidly, it is still very small compared to its competitors. Although it is more likely that a competitor would acquire MOVO rather than build its own solution, there’s no telling what a firm with deep pockets might do.
The last elevated risk for the company is financial risk. While revenue is growing rapidly and its bottom lines are improving, MOVO is still generating net losses. Add to this the short-term debt of more than $44 million, and it is clear that until the company is generating significant positive cash flow, some degree of risk exists on this front.
Bearish Outlook
While MOVO is an impressive company, investors should keep in mind its below-average risk profile. Having a single founder as its pillar, significant competition, and continued net losses are all factors that could hinder MOVO’s growth. In addition, MOVO’s price is very high, even after accounting for its traction.
Bullish Outlook
MOVO’s market opportunity is large and growing rapidly. Its team is highly qualified. MOVO CEO Eric Solis has extensive entrepreneurial and financial technology experience and seems well-equipped to make the company a success. And the company’s all-in-one solution gives MOVO a significant advantage over its peers. Over the past couple of years, MOVO has also demonstrated stellar financial and operational performances. It generated more than $5 million in revenue last year and cut its net losses by nearly 90%. Overall, MOVO is a robust prospect for investors to consider.
Executive Summary
MOVO offers an all-in-one digital banking solution in the midst of a fragmented financial technology landscape. Based on all of the data provided, it is clear that MOVO stands head and shoulders above many other startups on the market today. There are a few factors investors should be wary of, such as the company’s excessive valuation and slight amount of risk. However, these risks are outweighed by many more advantages. The company’s significant differentiation gives it a good chance of standing out in its market. The team, led by a founder with extensive business and technical expertise, seems well-equipped to bring the company to new heights. On top of that, MOVO’s performance has been promising. In the long run, it is likely that the company will fare quite well. Therefore, our team has rated the company as a Deal to Watch.
For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com.
Analysis written by Daniel Jones.