Transcription of Finance News Network Interview with Kyckr Limited (ASX:KYK) Managing Director, David CassidyCarolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from soon-to-be listed fintech, Kyckr Limited
(ASX:KYK) is Managing Director, David Cassidy. David, welcome to FNN.
David Cassidy: Thank you.
Carolyn Herbert: Can you start by giving us an introduction to Kyckr?
David Cassidy: Kyckr previously named GBR,Global Business Register, was founded way back in 2007 in Ireland and initially the business was founded by two founders, Robert Leslie and Ben Cronin. And Robert is very much a luminary globally around security identity. Ben was previously a rugby union player for Ireland, but became quite a successful businessman in his own right.
And the issue they saw in the early 2000s is the whole 21st Century theme,where it’s a borderless world. Who you’re doing business with, particularly the complexity doing business with other businesses and again, it’s even more complex as a bank. Who are they really, is it the correct legal name and address, who’re the directors, where do they live, who’re the shareholders? And the issue for them is the 21st Century theme is about fraud, it’s about terrorism. These are the things we’re trying to protect against in this new world.
Carolyn Herbert: Taking a look at your offering a little more closely. Who are your customers and what’s the key market for your services?
David Cassidy: Our customers are predominantly banks and as you can imagine, banks try to identify businesses they do business with. In particular where they’ve got hundreds of thousands or millions of business customers, there’s a real challenge for them. And the biggest challenge, particularly post 9/11 and post GFC, the regulation has increased dramatically. If you like, it’s like molasses in them trying to identify who you’re doing business with and realise revenue from them, for business customers in particular.
Carolyn Herbert: How do you differ from that of your competitors?
David Cassidy: Well here’s the epiphany for most people. There’s a whole world out there built on sand and very much so, our business model is an interrupter model. And the world of sand is that banks and other sectors have previously made these decisions off old copied data. Indeed to date, to the best of our knowledge, no other company in the world offers the means whereby which, you can make a live decision of the most compliant source, where we are connected to 153 business registers around the world. Which is considered a golden record when you’re making, what’s called a KYC,a know your customer decision.
Carolyn Herbert: We hear about Blockchain and how it will transform verification of transactions. What is it and what are the implications for Kyckr?
David Cassidy: Blockchain really has its origins as most people understand, in bitcoin coin. So what it is simply put, is it’s a network where there is a securitised form of identification, around transactions and other things. And for what we’re going to do, it’s much simpler actually. Where really we’re producing a means by which that corporate identity is encrypted and protected on this network. And then the network then self-replicates that information around all the nodes in the network.
Carolyn Herbert: Now to your IPO. How much do you plan to raise and when are you expecting to list?
David Cassidy: Our raising is minimum $5 million, maximum $6 million and that’s based on a plan that we believe, will take us through to profitability. We’re not of a view we have to do other raisings, post IPO. On a pre-cash, our evaluation we hope is very low-ball, to give us interest on $15 million. And we envisage that we list towards the end of July (now August), all things to plan.
Carolyn Herbert: And now to financials. What are you expecting in terms of growth over the next say, three to five years?
David Cassidy: One of the important things to understand about Kyckr is that we’ve had an old business model that was based on the provision of our services, using people. The whole new business model is about automation. So our forecast and the business that we would be in the ensuing years, is very different from what we’ve been before. So as a consequence of that we’re seeing already this year, our growth has been multiple of our revenue in prior years. We expect to see that ongoing across the next couple of years.
With this sort of business, I think FY18 in particular is a big year for us. We see that as a year where we’ll be talking about enterprise ratios, rather than customers. We’re not a business that needs a thousand customers; we’ll have the top ten banks in the world, the top ten tech companies in the world. And we have a mechanism whereby which we charge for every single customer, on a per click basis that we manage for our clients.
Carolyn Herbert: Finally David. Where would you like the company a year from now?
David Cassidy: Very much strategically our plans are for establishing a 24/7 global compliance hub. With Ireland managing Europe and the US, and Australia managing APEC and west coast US regions. So we really do need to establish those bases with the support for our sales, and also support for the provision of services to our existing global banking and tech clients today. So getting that foundation in place is critical, it’s a large part that underpins the needs and use of the IPO funds, number one.
And number two is getting in place that volume of management of business records, for our clients. Because that volume gives us the foundation for our revenue to grow, where we dig deeper and deeper in the provision of service to our clients. So the volume base and the strategic hub globally, is the objective for the next year.
Carolyn Herbert: David Cassidy, thanks for the introduction to Kyckr and good luck with the IPO.
David Cassidy: Thank you very much.
Ends
