MiKashBoks is offering equity at a valuation of $3 million. While MiKashBoks has made good progress in terms of partnerships, grants, and recognition, its current valuation seems reasonable given its early stage and revenue of $35,000. The company has generated revenue since 2022 and has the potential for high margins as it scales its platform and expands its user base.

However, it's important to note that MiKashBoks is still in the early stages of development, and there are risks associated with operating in emerging markets and targeting underserved populations.

MiKashBoks operates in the African financial technology (fintech) sector, which is experiencing rapid expansion. The sector's growth is driven by a combination of technological advances and changes in the financial landscape. The addressable market is valued at $7.46 billion, and this figure is set to grow at a steady rate of 25.22%.

The growth in fintech is driven partly by the increasing mobile phone ownership, which is reaching 75% even in hard-to-reach unbanked areas. This trend presents a significant opportunity for fintech companies like MiKashBoks to offer a financial tool to the unbanked population without engaging traditional banks directly. 

Overall, the market potential for MiKashBoks is high. With over 400 million people worldwide regularly saving and borrowing in community groups, there is a significant demand for services that can make these transactions easier and safer. By targeting this underserved market, MiKashBoks has the opportunity to drive financial inclusion and tap into the growth of the African fintech sector.

MiKashBoks was founded by CTO Salton Massally. With 12 years of relevant industry experience, Massally brings valuable expertise to the company. Indeed, Massally previously founded and was the CTO of iDT Labs, his first startup, operating in the fintech space in Sierra Leone. He focused on data and technology to drive social change and developed fintech solutions for financial inclusion. This experience ignited his passion for impactful technology in ICT for development and financial inclusion. This first startup, an open-source payment solution, helped Sierra Leone respond to the Ebola virus outbreak of 2015, later open-sourced as OpenG2P to aid governments worldwide in addressing social protection challenges during the COVID-19 epidemic. Massally earned recognition as a Queen Young Leader by Her Majesty Queen Elizabeth II in 2018. 

Massally then moved to work as the Director of Global Implementation for Kiva, a large and global micro-loans company. In 2021, he founded MiKashBoks to continue his mission of improving people's lives through fintech.

Massally onboarded Simon Levell as the company's CEO in October 2021. Levell spent his career in the investment team of Capital International Limited and earned an MBA in 2002 from the London Business School.

MiKashBoks has developed a platform that addresses the needs of the unbanked population in several countries in Africa who save and borrow money in community groups. The company provides a safe and connected way for these groups to digitize their financial transactions, making saving and borrowing easier and safer.

One key aspect of MiKashBoks is its focus on safety. By providing a secure platform for financial transactions, MiKashBoks offers a level of trust and security that offline group savings and lending practices may lack. This is particularly important in regions where informal financial systems are prevalent and may be prone to fraud or theft. MiKashBoks costs $1-2 per month per group for NGOs and is free for users.

However, MiKashBoks operates in a competitive landscape with similar companies such as DreamSave, Cyclos, and Circle. DreamSave is a digital savings group solution that has won multiple awards, including the Vodafone Wireless Innovation Award and the ”Best Developing World Technology,” ”Best App,” ”Best Data Platform,” and “Best Mobile Innovation” awards at the 2021 World-Changing Ideas competition. DreamSave both has an app to replace paper records and a web-based data management system that automatically collects records from savings groups and allows easy reporting and analysis. DreamSave requires only one shared smartphone per group. the app automates calculations and at the end of each meeting, all members receive personalized SMS messages with meeting summaries, balances, transaction receipts, loan reminders, and goal progress. The application works offline. Data is backed up automatically anytime a 2G network is available, even if the application is not running. The company's app is available in 18 languages in 20 countries in Africa, Asia, and LatAm.

DreamSave is a serious competitor for MiKashBoks as it owns a larger market share. Still, given the time needed to secure contracts with NGOs, a couple of similar companies could easily thrive around the world in the market.

MiKashBoks has achieved several milestones since its founding in January 2021. It ran an eight months pilot with CARE international in Sierra Leone and NGOs in Nigeria in 2021.

In 2022, the company's app went live on Playstore, and it won the MIT Fintech Startup Competition silver place and an award from the Harvard Social Impact Fund Fellowship. That same year, it received a UNCDF grant.

In 2023, MiKashBoks further expanded its operations. The company launched in Sierra Leone and worked with NGOs to deploy its product in Sierra Leone, Nigeria, and Ethiopia. It also completed USSD access via mobile money partners, enhancing accessibility for users. 

Financially, MiKashBoks has raised a total of $743,468 in prior funding rounds, including from the private investment fund Truestone Impact Investment Management. It currently has cash on hand of $35,000 and currently burns $12,200 every month. The company generated $35,000 in annual revenue since the beginning of the year, a small increase from its 2022 revenues $25,000. While MiKashBoks is still in the early development phase, its progress in acquiring paying customers is a positive indication of market acceptance and potential growth.

 

Investing in MiKashBoks carries several risks due to its early stage of development and the competitive landscape of the fintech industry.

MiKashBoks only generated up to $35,000 since the beginning of the year. The company relies on external funding to sustain its operations and achieve its growth objectives. The current monthly burn rate of $12,200 indicates a significant cash outflow, which highlights the company's need for continuous funding.

Furthermore, MiKashBoks operates in a competitive market with direct competitors such as DreamSave, Cyclos, and Circle. These competitors offer similar solutions targeting unbanked individuals and community savings groups. MiKashBoks will need to differentiate itself and effectively market its platform to gain a competitive advantage.

Additionally, the barriers to entry in the fintech industry are relatively low, which means that new competitors may emerge and challenge MiKashBoks' market position. The company must continuously innovate and adapt to changing market dynamics to stay ahead of its competitors.

Another risk to consider is the company's reliance on partnerships and long sales cycles. MiKashBoks needs to establish and maintain strategic partnerships to expand its user base and reach. Long sales cycles may delay revenue generation, affecting the company's financial performance and growth trajectory.

Finally, MiKashBoks operates in emerging markets such as Sierra Leone and Nigeria. These markets present unique challenges, including regulatory uncertainties and economic instability, which may impact the company's operations and ability to scale effectively.

MiKashBoks is well-positioned to capture a significant market share in the African fintech industry with its innovative platform. The company has already gained traction with over 1,000 users in Sierra Leone and 14,000 users in Nigeria, demonstrating the demand for its services.

The platform fills a crucial gap in the market by providing a safe and connected way for community groups to digitize their financial transactions such as saving and lending money. With an estimated 400 million people worldwide regularly engaging in group savings and borrowing, MiKashBoks has identified a vast market opportunity.

Furthermore, MiKashBoks has formed partnerships to support its growth and expansion. The company's collaboration with Truestone Impact Investment Management, a notable investor, signifies confidence in its mission and potential. This strategic partnership can provide MiKashBoks with the necessary resources and expertise to scale its operations and reach a wider audience.

With its high-margin revenue model and potential for recurring revenue, MiKashBoks has the opportunity to generate sustainable financial growth. The company's annual revenue of $35,000 and high revenue multiple demonstrate its ability to monetize its platform and drive profitability.

MiKashBoks operates in a competitive market, with direct competitors such as DreamSave, Cyclos, and Circle. While the company has gained some traction with over 1,000 users in Sierra Leone and 14,000 users in Nigeria, it is important to note that these numbers represent a small fraction of the target market of over 500 million unbanked people who save offline in groups. These numbers also represent a low revenue, since MiKashBoks only charges $1-2 per group per year, and a 1-2% transaction fee. The company may face challenges in scaling its user base and penetrating a market with established players and existing solutions on smartphone or on paper. Some groups may simply refuse to digitalize their saving operations.

In addition, MiKashBoks has a monthly burn rate of $12,200, which is close to its most recent cash on hand of $35,000. This indicates that the company is reliant on funding to sustain its operations and may face cash flow challenges in the near term as its runway is short. Without a clear path to profitability and a sustainable business model, MiKashBoks may struggle to attract further investment and achieve its growth objectives.

Lastly, while the founders of MiKashBoks appear dedicated to the company's success, the absence of patents and low barriers to entry in the market pose risks. Competitors can easily replicate and offer similar solutions, potentially eroding MiKashBoks' market share and competitive advantage.

Founded in 2021, MiKashBoks is a digital social finance platform that aims to revolutionize the way community groups save and lend money. The company targets the vast market of over 500 million unbanked individuals who currently manage their savings offline in groups. MiKashBoks provides a secure and efficient way for these groups to digitize their financial transactions, thereby increasing safety and accessibility to formal financial services.

The platform has already gained traction with over 1,000 users in Sierra Leone and 14,000 users in Nigeria. MiKashBoks has also started generating revenue, indicating a positive market response to its solution. Furthermore, the company's recognition in the MIT Fintech Startup Competition and the Harvard Social Impact Fund Fellowship underscores its potential.

However, investors should note that the company is still at an early stage of development. It still faces adoption risk and competition from more established platforms like DreamSave. Closing deals with NGOs may take time and slow the company's growth pace.

MiKashBoks is currently seeking additional funding to further its growth. The proceeds will be used for marketing campaigns in Sierra Leone, product development, operations, and business development.