SPENN Technology is a mobile banking firm currently targeting Sub-Saharan markets. It seeks to drive financial inclusion by offering free-of-charge mobile banking services to end users, creating a financial ecosystem with multiple revenue streams from banking partners, third-party service providers and local businesses. SPENN can then capitalise on banking both the unbanked and banked population, without it being at the expense of the end users. Through its offering, it provides users with essential services e.g., digital spending and savings accounts, P2P money transfer and value-added services to consumers, POS, marketplace, and payment solutions etc. for businesses.
SPENN was founded in 2015 but it has only just started with commercialisation and remains an early-stage company (in practice at the pre-revenue stage at the time of writing). This means that there are limited financial data, which poses a significant risk to investors. Adoption of SPENN’s services, combined with its ability to monetise on its business model, also represents a major risk. SPENN will need to raise capital to fund its expansion plans and commercialisation, which poses a key risk given the underlying business risk and limited cash generation. With SPENN reporting in DKK and revenues being generated in more volatile currencies, FX risk is also a factor.