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HAFA
An ecosystem model that breaks out of traditional financing where banks, enterprises and suppliers will benefit from as it is led and owned by the enterprise to unleash the invoice value to cash
$X,000,000
Y% undefined $X,000,000
Z
4 months ago
Overview

Investors, please reach out to [email protected] if you have any questions regarding this investment opportunity or indicate your soft commitments through the link above!

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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. 

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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.

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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.

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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. 

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Traction

HAFA Ecosystem Finance Platform, co-innovated with SAP and built by Deloitte with SAP tools on SAP Business Technology Platform (BTP)

  • Completed Minimum Viable Product 1 (MVP1) and ready for pilot enterprises
  • Completed Platform demo and validation with J&J, Total Energy, CIMB, ABB & Google
  • Completed integration certification by SAP

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 

  • Annual licensing fee of S$39,600
  • Additional revenue from tier-pricing on transactions

2. Revenue from Bank

  • Revenue from bank (25% of total interest) for the higher of any invoice drawn or a minimum of 2% interest
  • Invoice value by enterprise type 

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

  • Led and own by Enterprise with full visibility
  • HAFA manages bank discussion on the program
  • HAFA assists on supplier selection criteria
  • HAFA onboard and trains suppliers of all tiers
  • HAFA facilitates supplier adoption and financial draw down behavior by supplier

Benefits for Suppliers - Cash advancements at enterprise rate through seamless platform supported by HAFA customer support team

  • Receive immediate approval
  • Favourable interest rate based on enterprise credit rating
  • Provide credits for supplier's supplier
  • Digital process eliminating many current process

Benefits for Banks - Onboards extremely low risk financing to thousands of suppliers with greater drawdown rate

  • No system integration is needed
  • HAFA Facilitates Enterprise and Supplier KYC
  • HAFA provides Enterprise and supplier onboarding and training
  • HAFA provides access to potential new customers (suppliers)

Competitive Advantage

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Founder

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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/ 

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