Cashcloud-CEO Prof. Moritz Hunzinger confirms: “We already have the best Mobile Payment product. Now our goal is the market leadership in Europe.”
Fintech companies need an average of 7-8 years to reach break-even. Since establishment in 2011, Cashcloud has worked intensively with the development of its technologies. Only in 2014 marketing activities were started slowly, which were intensified in 2015. Meanwhile up to 60 internal and external employees were on the payroll. Due to the business model no significant revenues could be generated until then. Revenue is dependent on customer growth, also a critical mass must be reached first in order to gain more marketing partnerships and to be of interest to advertisers as an advertising platform.
However, there was an additional capital requirement of 10-15 million euros, which should be covered in June 2015 with the IPO. Due to the trade suspensions, the company was massively restricted in its negotiations with new investors. Finally, the completion of a large follow-up financing has been rejected by the investors due to the notice of BaFin and the re-suspension from the stock market.
On 2 August 2016, the General Assembly in Basel has decided accordingly to sell the operating business in the form of Cashcloud SA Luxembourg to an investor group. The new owner of the Cashcloud SA is now creating the financial conditions to promote the original expansion plans. The funding of the country expansion to 24 nations is now secured and soon the acquisition of new customers will be started again.
"We are now able to export our most ambitious product in the whole world. First, our goal is the market leadership in Europe. "
With the support of the new owner Cashcloud will continue to build the technology leadership in the mobile payment sector. The company plans with the recent financing a further development of the Mobile Wallet app. "We already have the best Mobile Payment product - and we will continue to work hard to always be one step ahead of our competitors in order to be the first choice for users."