[IMPACT]
The problems:
- General credit exclusion problem: More than 70% of Latin America’s population works informally, therefore they can’t prove stable income and so they are marginalized by the traditional credit system that can’t control the risk of this unknown market. People end up recurring to loan sharks which makes their initial problem even bigger.
- Funding problem: People willing to fund the credit to emerging markets are elsewhere around the world and cannot connect easily with the final users.
The solutions:
- We are successfully solving the General credit exclusion problem with our Collaborative Credit Scoring, we are the pioneers scaling social credits with technology*, and it is being proven with our low default rate (8% against 15% of the microcredit system and 20%-30% of other micro-lending startups). Our algorithm works this way: users increase their credit line and reduce their interest rate according to their own credit behavior and their first-degree friends.
- We aim to solve the Funding problem by allowing Cardano token holders to finance loans in our markets, by delegating their ADA to our stake pool(s). Then we use the rewards as collateral with liquidity providers to secure the debt funds needed to lend to our users in the “real world”. In exchange for delegating ADA to our stake pool, we give our delegators our own Cardano-based tokens, such as MELD’s successful ISPO.
*There are good historic references from non-tech solutions for community lending such as India’s Grameen Bank and Mexico’s Compartamos Banco.
We are an up-and-running B2C solution that’s currently operating with centralized entities. We are looking to migrate to run our business in Cardano.
The main risk is that we do not have engagement from the Cardano community.
Other risks are more foreseeable and we have taken measures, for example, regulatory ones, we work with one of the most recognized crypto law firms in Latin America.
[FEASIBILITY]
1. To validate the engagement of the Cardano community with our project, we will create and evaluate the performance of two stake pools:
Deadline: 2 months from funding.
2. To be fully legally compliant we will be incorporating a SPV company in BVI to use the benefits of the Regulatory Sandbox.
Deadline: 3 months from funding
3. Our Cardano native token to give in exchange for the stake pool rewards.
Deadline: 6 months from funding.
Our company will invest 50% of the project’s budget, we are applying at Catalyst for the community to help us fund the migration to Cardano, as this will be a good signal of engagement from the ADA holders. These are the disaggregated costs:
- Stake pool launch and operation for the initial 6 months: $12,240
- One dedicated Dev for the Cardano native token launch and operation for the initial 3 months: $12,000
- Servers and licenses: $1,000
- BVI Incorporation costs: $5,000
- BVI Sandbox Application Regime: $18,000
- AML/KYC Legal fees: $1,500
Total budget: $49,740
50% funds request: $24,870
Full-time leadership team:
- I am the CEO, before I was the Regional Manager of Cabify - the largest Uber regional competitor - & before I was a Consultant at McKinsey. [https://www.linkedin.com/in/chrobilliard/]
- Jose Manuel, our CTO, was Tech and Data Regional Lead for Cabify. [https://www.linkedin.com/in/thetex/]
- Jose Francisco, our COO, was Project Manager at Cabify and a former E&Y Consultant. [https://www.linkedin.com/in/jtimarchi/]
- Harinson Arrieta, our CGO, lead growth for MuniTienda, Helenas, & Picap. He has acquired more than 20 million users in his career. [https://www.linkedin.com/in/harrison-arrieta-montes-219a3077/]
- Matias Lopez-Therese, our CPO, is an experienced mobile apps operator & fundraiser. [https://www.linkedin.com/in/matiaslt/]
Who we are and our traction:
We are Kashin and, with our collaborative credit scoring, we are trusting that 45% of the population of emerging markets that today are financially marginalized and end up in informal lenders (loan sharks).
We have started with nano credits ($20-$200), then we will launch our wallet to facilitate payment everywhere without even onboarding merchants. Then we will guarantee rent, finance studies and why not even small vehicles, the sky’s the limit. We can even facilitate our credit scoring to other Cardano dApps who can benefit from our credit scores, then unlimited possibilities can happen.
We’ve been Cardano advocates for a while, and MELD inspired us to leverage stake pools engagement for a higher purpose while making a good investment for ADA holders.
We currently operate in Peru with traditional loans, we are launching in Colombia in 2022-Q2, and Mexico in Q3. We will continue further progressively in other Latam countries. We are a regional team with people already located in each of our targeted countries.
We have developed all our core technology in-house (credit algorithm, backend & app for Android).
In 11 months operating we have these results:
- USD 200,000+ lent in 8,000+ loans from 1 to 10 weeks periods
- Take rate ~16%* and default rate ~8% (The system has 15% default and other micro-lending startups have defaults between 20% to 30%)
- 68 Net Promote Score points (Range: -100 to +100)
- 52% Ellis Product Market Fit Test (Above 40% = Strong PMF traction)
- Churn below 10% & ascending Net Revenue Retention Rate
Now we are preparing to open our stake pools and polishing legal requirements to launch our project in Cardano.
Mentors:
- Claire Diaz-Ortiz, Kleiner Perkins scout & Twiter founding team, Investor
- Sean Sadasivan, Senior PM of Credit Karma, Angel Investor
- Daniel Kahn, Global Open Finance Head and founding team of Plaid, Angel Investor
- Mariano Perez-Lozano, Chief Transformation Officer of Rappi, Angel Investor
- Thamim Ahmed, Head of London School of Economics Crypto Lab
Institutional backing:
- Unpopular Ventures
- First Check Ventures
- Newtopia VC
- Winnipeg Capital
Partnerships:
- We are on track to a long-term partnership with MELD to provide us liquidity from 2022 Q3 onwards. MELD successfully launched the first ISPO (Initial Stake Pool Offering), with over 270M ADA staked in their stake pools. - Vent is supporting us in the legal & tokenomics for our launch to market. We aim to give a clear utility purpose and create value for our token holders with the progress of our ecosystem
- @Zebra, the creator of https://www.armadillo-pool.org/ will help us launch and operate our pools.
Our Android App:
We are the first “Loans” search result in the PlayStore in Peru. Find screenshots of our live app attached.
Our webpage:
Crypto web: https://kashin.xyz
Find our updated Litepaper attached
Newtopia VC Demoday Pitch:
https://www.youtube.com/watch?v=s0HgeEiYfrU&t=2856s
*Our protocol is set at 5% profit for sustainability, and we are working on automatizing interest rates for all our different user clusters.
[AUDITABILITY]
Our project will be successful if:
After 1 month:
- We have the 2 stake pools up and running
After 3 months:
- We have more than 1,000 ADA holders staking in our stake pools
- We have more than 10M ADA staked in our stake pools
After 6 months:
- We have more than 10,000 ADA holders staking in our stake pools
- We have more than 50M ADA staked in our stake pools
- We start our Cardano native token distribution
After 12 months:
- We have more than 20,000 ADA holders staking in our stake pools
- We have more than 100M ADA staked in our stake pools
Issue more than 1’000,000 nano-loans for the financially marginalized of Latin America in our platform, backed by the Cardano community by the end of 2023.
This relates to the SDG sub-goal 1.4 that states: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance.
No
SDG Rating
SDG goals:
Goal 1. End poverty in all its forms everywhere
Goal 5. Achieve gender equality and empower all women and girls
Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Goal 10. Reduce inequality within and among countries
Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
SDG subgoals:
1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
Key Performance Indicator (KPI):
1.4.2 Proportion of total adult population with secure tenure rights to land, (a) with legally recognized documentation, and (b) who perceive their rights to land as secure, by sex and type of tenure