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Quick Pitch
HAFA has created an ecosystem model that breaks out of traditional financing where banks, enterprises, and suppliers will benefit from. The ecosystem financing program is led and owned by the enterprise to unleash the invoice value to cash while still aligning to their supply chain strategy and goals while supporting all levels of the supply chain.
Problem Statement
SMEs today are financially more sensitive to unforeseen downsings in business cycles, late payments from customers. They lack credit worthiness to borrow from bank, and face unfavorable interest rates when they can borrow.
Solution
HAFA Ecosystem Finance Program allows suppliers to get their cash in advance upon delivery of goods and services to the enterprise and at a much lower interest rate as it would ride on the enterprise’s credit rating. Competitive sources of funds from multiple financiers (banks/NBFIs) will also help lower rates. The repayment will thus be from the enterprise to the financiers.
This enables enterprises to offer support to their suppliers without changing their existing payment terms or affecting their own cash flow. Enterprises can even extend payment terms without much negative impact on their suppliers.
Go To Market Strategy
HAFA Ecosystem Finance Program is positioned as a natural extension of SAP and SAP Ariba, to tap into their pipeline of supply chain and supply chain financing.
Market Size
The market opportunity for supply chain financing has grown significantly to $1.3 trillion in 2020 and it is expected to rise to $2.5 trillion by 2025 as forecasted by the World Economic Forum.
Traction
HAFA Ecosystem Finance Platform, co-innovated with SAP and built by Deloitte with SAP tools on SAP Business Technology Platform (BTP)
Selected by Infocomm Media Development Authority (IMDA) of Singapore for a special development program, that with the help from a pre-selected consultant, Mach49, HAFA can accelerate its go-to-market efforts and fundraising.
Revenue Model
HAFA Ecosystem Finance Program generates revenue from two streams:
1. Revenue from License
2. Revenue from Bank
Key Value Proposition
HAFA Ecosystem Finance Program provides a win-win-win situation for all stakeholders.
Benefits for Enterprises - Easing of cashflow and qualitative improvements for supplier management
Benefits for Suppliers - Cash advancements at enterprise rate through seamless platform supported by HAFA customer support team
Benefits for Banks - Onboards extremely low risk financing to thousands of suppliers with greater drawdown rate
Competitive Advantage
Founder
Philip is the Founder and CEO of HAFA. Leveraging his years of experience into Supply Chain Financing Technology and System supporting various industries with the cash flow needs. Philip is the Lead Advisor and Co Chair of Malaysia Halal Digital Chain Committee led by Ministry of Trade and Industry working with ministries and agencies advancing halal trade using technology.
Philip was the Managing Director of Global Center of Excellence, creating a marketplace for governments and industries attracting investments through DHL network and services, including business development, sector solutions.
Philip was previously a Partner at Ernst & Young helping pharmaceutical and consumer clients drive market entry strategy, and identify suitable strategic distributor for growth.
Philip holds a Master’s degree in Business from Monash University and a Bachelor’s degree in Management from Deakin University.
Fundraising and Use of Funds
HAFA is raising S$500,000 through a redeemable convertible loan, with a tenure of 18-months at 12% p.a. Investors are entitled to redeem the note in full with accrued interest upon maturity. Conversion will happen at the next qualified financing with the lower of a 20% discount or a S$5,000,000 valuation cap. Funds raised will provide HAFA sufficient runway to raise a Series A round in 2022.
Website - https://hafascf.com/