The competition for Spalit comes from the possibility of giving the customer a loan at the point of sale, but Don says that if the customer does not pay on time, the interest is raised to about 30 percent, and that the fact that a debt has hurt his credit rating. “There’s no solution like Splittet, which allows deployment to payments anywhere in the world, online and offline,” Don says.
Are there entry barriers to the field? Could a start-up come and compete with you?
“It may be, but it will take a risk, because we have a patent on the process of ‘closing’ credit frameworks.This patent processes with a technological tier.
The idea of going public was raised a year ago, through a broker who came to the company, and at first Don said no; But the broker assured him that there would be a lot of “noise” around the Spalit in Australia. Two consumer finance companies are traded in Australia – A $ 715 million in Australian and AfterPay worth A $ 5.8 billion. Spalitit believed that investors’ knowledge of these companies would help to understand the liquidity, while investors would recognize the advantages of Split, which unlike the two is not subject to the regulator and has “unlimited growth capability.” The broker persuaded, and the company raised $ 2 million in Australia before the issue, and continued to issue. “It really worked beyond expectations,” Don says.
Maybe you set pricing too low?
“It’s a good question, we wanted to be attractive, and maybe at a higher price, the issue would have failed, but you can not tell, and it’s also less interesting.”
After the start of the share, another issue is planned?
“We are concentrating on using what we raised to grow, we grew from 13 to 28 employees, recruited senior executives to manage business development, and we invest in marketing, creating awareness of the brand.”
In an age of endless information, how do you manage to collect all your organization’s data?
Don promises that his door is now open to Israeli companies considering issuing in Australia, and his clear recommendation is not to come with a board of directors almost entirely Israelis. Another recommendation, which is compatible with the Australian market, is to present a product that works: “The market is fed up with high-tech companies with an idea that can not prove they can sell the product,” he says. At the same time, he helps start-ups by getting to know private investors (angels), and he says there is a need to build an ecosystem of investors and companies.
Those who missed the hype surrounding Split are Israeli venture capital funds (VCs). “There are investors in Cyber, maybe in Cannabis, and some of the funds invest in Pintek – Avi Zeevi of Moyola and FinTLV, and Zeevi invested in payoneer, and it’s clear that there are big turnover. When we grow up we will not have to, so what is the wisdom? I meet with a lot of small pintek companies, and that’s the situation, and our solution was to recruit private people, but it’s been chasing the money all day.