2020

INVESTORS
UALET
1. UALET STRATEGY 2
Introduction 2
What’s next 2
Where we are 4
What we want to achieve 6
How we are going to achieve it 6
Business Model 9
The Best Alliances 10
User Acquisition Strategy 11

2. FINANCIAL MODEL 12
Unit Economics in Financial Model 12
Financial Model Projections 14

3. VALUATION 14
Two different approaches 14
Valuation conclusions 15

4. CAP TABLE IMPACT 16

5. WHY INVEST IN UALET 17

6. APPENDICES 18

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 UALET
1. UALET STRATEGY

Introduction
Two years ago we set out to democratize the investment world. We created a breakthrough
robo-advisor that allows users to invest as little as $3 USD through their phones in a
diversified portfolio of the best fund administrators in the region. To date, we have brought
UALET into the hands of more than 30,000 people in the 32 departments of Colombia—even
places where there are no banks!

What’s next
Monetizing our cash-out

● Problem: ​We realized that the main reason why people would take their money out
of UALET was because they needed to pay for something.
● Solution: ​By eliminating the bank, which serves as the intermediary between our
cash-out and what our customers are paying for, we can now provide and monetize
directly from these services.
● Additional AUM: ​The counterintuitive argument that by allowing our customers to
cash-out more easily will make them want to keep more money in our platform will
have a significant effect on our AUM.

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Robo-advisor at the core

Our robo-advisor is not going away, it is in fact becoming more powerful.

By maintaining the robo-advisor at the core of our business model we are now able to
provide some of the most widely sought-out financial services, and make them so much
better.

Open architecture platform

What makes us special is that we don’t plan to become a card issuer or an insurance
company, nor an asset manager or a bank, we plan to become the first open-architecture
platform in LatAm that serves as a one-stop-shop for all financial services. And we plan to
achieve this by letting the best do what they do best while we focus on the growth of our
platform.

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Where we are
What we have accomplished

● Update (Front and Back) 2.0 Version​: The new version of the app, with new features
and a completely redesigned UI/UX, has launched already. The back-end
infrastructure was designed to help for a smoother integration of the future
verticals.
● Skandia: ​One of the biggest asset managers and insurers in LatAm as our strategic
partner in our expansion plans contributing with:
○ License to operate and distribute investment funds in Mexico and other
countries
○ Administration of Skandia funds
○ Onboarding process abroad
○ KYC legal requirements
○ Structure and assistance in future investment rounds
● Regional Expansion to Mexico:​ Currently in pre-launch beta testing.

Current Unit Economics

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What we stand for

WHY
It is our mission to ​democratize​ the financial services that would otherwise be inaccessible
to the masses.

HOW
By making it our #1 priority to ​constantly innovate​ and ​offer the best possible solutions.

WHAT
And we do this by having an ​open architecture platform​ that allows users to connect with
the best products in the industry.

What we want to achieve

To be the ​neobank of the ​masses ​and serve as a “​one-stop-shop​” for all financial services in
LatAm.

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How we are going to achieve it
Verticals Expansion Plan

In-depth description of each vertical

● Prepaid debit cards: ​UALET users can fund their debit card using money from their
investments fund. The easier it is to use your money the more you’ll want to have
resources in your account. This will have a great impact on the user base of UALET.
When the transactions and volumetry increase, so does our recurrence and
retention, because clients will use our card instead of cashing-out from the app.
Payments Pitch Deck​ - ​Payments Income vs Expenses

○ Colcard: ​Colcard is a payment method card for the Atlantic coast

transportation system in Colombia. UALET card will allow you to pay for the

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 travel tickets using NFC technology in the app. This business line is expected
to bring a large customer base to our application. Its value comes from the
indirect impact it can have on the other vertical lines and its commission fee
structure.

● Insurances: ​UALET users will have a marketplace for policies like life, personal
accidents, and auto insurance. The money to fund the monthly premiums will come
from the already implemented system of automatic debits. These products will have
a direct impact on the recurrence rate of the company.
○ Insurances Pitch Deck
○ Insurances - Income vs. Expenses

● Remittances: P ​ eople living in other countries can easily transfer money to a UALET
user in Colombia. This money is reflected in the users’ balance, giving him/her the
possibility of leaving it untouched in the investment funds. Therefore, this too has a
positive impact on UALET’s AUM model.
○ International Payments - Income vs. Expenses

● Investment funds marketplace: UALET users will be able to choose the different
mutual funds in which they want to invest their money. This will increase the
engagement of the client with the app, making them prompt to invest, therefore
increasing our AUM.
○ Marketplace Pitch Deck

​ ny UALET user can invest on behalf of his child through protected accounts
● Kids: A
that guarantee that the funds’ money is not touched until the set date of retirement.
This will increase the AUM and potentially have a positive impact on our average
ticket value of investment.

● SMEs B2B: This is an innovative solution for the SME’s to save their money because
it gives them more liquidity and better returns than the typical DTF. It is also an
entry point to one of the most lucrative market segments. Potentially increasing
AUM through higher ticket prices and a larger user base.

​ ote:​ for further information go to sections ‘Future Integrated Business Lines KPI’s’ and ‘Appendices’
*N

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Regional Expansion Plan

After Mexico, we are expanding to the other countries in the Pacific Alliance.

​ ote: for further information on each country’s assumptions go to the ‘Dashboard’ sheet in the financial
*N
model.

Business Model
Backbone
● Stock Broker License: ​legal capacity to invest our clients’ money
● AUM Model: ​this serves as the backbone for UALET’s business lines
○ 13 M including legacy contracts AUM
○ 50/50 Fee split with investment fund administrators

Revenue Model (further detail on ‘Financial Model Explained’)

Business Line Revenue Model

Backbone 13 M USD including legacy contracts AUM

Investment Funds 50/50 fee split with Fund Administrators

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 Prepaid Debit Cards AUM, Monthly fee for active clients, share
of interbank fee

Insurances 35% avg. commission from a 90% collection

rate

International Payments 16 COP / USD transferred

​ ote: for further information on each vertical’s KPI’s go to ‘Financial Model Explained’ subsection ‘Future
*N
Integrated Business Lines KPI’s’.

The Best Alliances

Alliances

Vertical Strategic Alliances Status

Investment Colombia: Colombia:

Funds Active

Mexico:
October
Mexico:

Prepaid Debit Colombia: Colombia:

Cards Signed Contract

Mexico:
Mexico: Negotiations

Insurances Colombia: Colombia:

Final revision of
contract with
Allianz, before
signing.

In negotiations
with Sura.

Remittances Negotiations

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User Acquisition Strategy
Digital Marketing

Our Objectives:
● Increase number of users
● High retention rates
● Decrease CAC & Churn
● Increase LTV and recurrency

How: ​Data driven creativity

Our Three Core Fronts

1. Media Campaigns
a. Social Media Ads (Google Ads & Facebook Ads) - User Acquisition
b. Email Marketing
c. Web Page & UALET Blog - Informative (Financial Education & About UALET)
d. Push Notifications & SMS
2. BBDD & Dashboarding
a. Mass email automation
b. Data centralization and analytics with tools such as HubSpot, AppsFlyer,
Firebase, Google Analytics, Power BI, and Facebook Ads dashboard.
3. Martech Enablement
a. Monitoring user behaviour in app and website
b. Measure attribution channels to ensure optimization

​ ote:​ ​for further information refer to presentation “Estrategia de Marketing UALET” per request.
*N

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UALET’s Digital Marketing & Analytics Ecosystem

Other Acquisition Strategies

Other acquisition strategies include strategic partnerships and alliances such as the one with
Colcard previously mentioned. Once our digital card is implemented there are a lot of
opportunities in the world of transactionality for mass integration of users into UALET.

2. FINANCIAL MODEL

Unit Economics in Financial Model

Future Integrated Business Lines KPI’s

● Additional Investment Fund Fees:​ t​ he same model we have currently

○ 7 new funds just in Mexico
○ Same 50/50 fee split with fund administrators
○ Final AUM balance including SME’s 475 Mn USD in 2025

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 ​ ctivity fees and AUM integration
● Prepaid Debit Card:​ A
○ Monthly fee for active clients of $0.45 and share of interbank fee of 1%.
○ Two types of card holders: individuals and SMEs
○ By December of 2025, UALET payments in Colombia and Mexico will
generate:
■ An aggregated monthly transaction volume of $73,000,000
■ An aggregated monthly income of $925,000
■ 377,000 UALET card users
■ 12,600 active SMEs users
○ Expected Market Share in Colombia
Persons​ - Population: 54,870,000 in 2025
■ TAM: 35,480,000 people with bank accounts in 2025
■ SAM: 42,300,000 debit cards in circulation in 2025
■ SOM: 180,080 UALET debit cards in December 2025
● 0.005% of debit card holders market share
● 0.004% of debit cards in circulation market share
○ Expected Market Share in México:
Persons ​- Adult population: 91,503,577
■ TAM: 33,856,323 people with bank accounts
■ SAM: 139,414,850 debit cards in circulation
■ SOM: 87,000 UALET debit cards in December 2025
● 0.003% of debit card holders market share
● 0.0006% of debit cards in circulation market share

● Colcard: ​interconnected impact on the other vertical lines and fee commission
○ Clients: 200 thousand new active clients by 2025
○ Cross contribution in all other verticals

​ ommission for the premiums and AUM impact

● Insurance Model:​ C
○ $10.000 COP avg. premium for life, AP and auto insurance
○ 35% commission of the 90% collection rate on each policy
○ Monthly addition to the AUM model
○ TAM: $8 Bn USD in 2019
○ SAM: $3 Mn USD (0.04% of TAM) in 2025
○ SOM: $1.8 Mn (56% of SAM) in 2025
○ Clients: 225 thousand new active clients by 2025

● Remittances:​ ​Intermediary fees and AUM

○ 16 COP per 1 USD transferred
○ TAM: 17 Bn USD sent to Colombia in 2025 (projection)
○ SAM: 7 Bn USD (40.6% of TAM) in 2025
○ SOM: 59.9 Mn USD (1% of SAM) in 2025

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 ○ Clients: 50 thousand new active clients by 2025

● SME’s B2B: ​Activity fees and AUM

○ 50/50 AUM Fee split with Fund Administrator
○ Debit card activity fees
○ Expected Market Share in Colombia
■ TAM: 1,438,712 businesses
■ SAM: 892,001 SMEs that don't have access to financing
■ SOM: ​ ​7,954 active SMEs by 2025
○ Expected Market Share in Mexico
■ TAM: 4,364,629 micro and SME’s in December 2025
■ SAM: 3,448,057 SMEs that don't have access to financing
■ SOM: 4,636 active SMEs users in December 2025

​ ote: ​for further detail on how Colcard contributes to each other vertical go to sheet ‘4. Revenue’ rows
*N
339-353 of the financial model

Financial Model Projections

Go to the ‘Appendices’ section

3. VALUATION

Two different approaches

1. Multiples valuation

In the first approach we take into account that UALET has evolved, since the entry of
Skandia, into the category of a neobank with the new verticals. Therefore, we use an
EV/Sales multiple of 5 comparable companies (Nubank, Chime, N26, Monzo, and Ualá) in
their fifth year of operations to reach an average multiple for these companies. Using the
projected revenue for UALET in 2025 and the average adjusted multiple for neobanks we
are able to calculate the enterprise value for UALET in 2025 ($203.5 M USD pre-money). We
then discount this value by using a cumulative WACC for the aggregated risk of each country
we are expanding to (50% in year 2025) in order to reach a present EV for UALET ($26,9 M
USD pre-money). With a round A investment of $4.58 M USD we are valued at $31.5 M USD
post-money.

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 2. Skandia floor valuation

In the second approach we set the valuation floor based on the Skandia deal. The terms
were set so that they would enter at a pre-money valuation of $11,36 M USD for 26.42%
participation, equivalent to $3 M USD at the moment. This would in turn help us with the
regional expansion plan and all the additional benefits mentioned in the beginning of the
paper. Having said this, their contribution has increased our valuation to approximately $20
M USD as we are now entering Mexico and have their support to expand through the pacific
alliance.

Valuation conclusions
With Skandia on our Cap-table, as well as the expansion into debit cards and insurances, we
start competing against major companies in the division of traditional and fully digital banks.
As we have gained traction and reached certain key milestones we are now able to pursue
the different verticals and regional expansion plans that we would not have been able to a
few months ago. Therefore, as our business is expanding into a neobank, UALET is now
valued at $26.93 M USD pre-money.

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4. CAP TABLE IMPACT

Round A Investment:​ ​4.6 M USD

Investment Growth

The following table shows how the investors’ multiple of invested capital (MOIC) performs
over time due to the entrance of new investors and the company’s organic growth.
UALET's Investment Growth

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 Investing in financial Inclusion: we are bridging the gap between the
underbanked and financial integration. Investing in UALET means
investing in the democratization of financial services in Latin America.
6. APPENDICES
Appendix 1

Appendix 2

Appendix 3

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Appendix 4

Appendix 5

Appendix 6

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Appendix 7

Appendix 8

Appendix 9

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Appendix 10

Appendix 11

Appendix 12

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Payments - Income vs Expenses

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Insurances - Income vs. Expenses

International Payments - Income vs. Expenses

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 2020
INVESTORS