L-Pesa Microfinance is a fintech startup poised to take advantage of the fast-growing need for financial services in the developing world. The company has validated its operating model over the past 24 months and has built sophisticated technology, automating most of the operation. Its primary barrier to growth at this point is its ability to fund user acquisition and loans. The loss ratio on loans runs below 10% while return on loans is approximately 25%. The idea for L-Pesa was incubated for a decade, and the business was launched at the time four important market forces converged to allow scaling:
• Big Data, Artificial Intelligence & Blockchain
• Alternative Credit Data
• Mobile Technology
• Biometric Identity
L-Pesa has a strong focus on automation. 95% of the user acquisition and loan underwriting process is automated and therefore extremely scalable. The company has spent two years developing its customer-facing and back office systems using a team of seven software developers.
The market today displays a number of problems:
Underwriting Traditional- consumer and business credit reports used for loan underwriting in developed countries are generally unavailable, and loans without proper underwriting will result in high loss ratios. Lack of bank credit- Traditional bank loans are not available to the vast majority of the population in developing countries.Microfinance targets agriculture only -Traditional microfinance institutions primarily lend to very poor farmers in rural areas. Middle class consumers do not have access to microfinance.
The L-Pesa solution
The idea for L-Pesa was incubated for a decade, and the business was launched at the time four important market forces converged to allow for rapid scaling. L-Pesa has developed a unique, proprietary credit scoring model based on user behavior combined with traditional and alternative credit data. L-Pesa competitors have developed their own proprietary models. Experience over the next decade will lead to revised best practices, which will eventually become industry standards.L-Pesa has harnessed these market forces and built technology and a proprietary credit scoring model that allows it to quickly scale microlending in developing countries while keeping loss ratios below 10%. The solution is highly automated, allowing a small back office team to support high volume loan origination. All loans are serviced by L-Pesa.L-Pesa’s available market will vastly exceed the lending capacity of L-Pesa and all its competitors for the foreseeable future.
Token Launch Summary
Token name: KRIPTON
Token ticker: LPK
Token owner: L-P Kripton ltd., Suite 2B, 143 Main Street, Gibraltar GX111AA.
Company Number: 116865
REID Number: GICO.116865-49
Token type: Ethereum ERC20
Total tokens issued: Maximum total of 2,600,000,000. Final number of tokens created will be calculated according to final amount of contributions. The final number will be published by the end of the ICO. Mining: There shall be no mining or other means to increase the token amount, save a second ICO in the future.
LPK Tokens distribution:
Total tokens sale 2,600,000,000
Total Tokens Sale 58% (of all tokens created)
Management and Team 15%