Sunday, 3 December 2017

Zapaygo have an interesting past.


We dont often comment on new pitches - but Zapaygo Investments Ltd, now live on Crowdcube, is an exception!


With 345 Twitter followers and 644 likes on FB, this payment app is valued at £9.5m. 

Zapaygo could to be found this summer offering investors on the Angel Investment Network, a valuation of only £6.6m pre money for a £900k investment. A deal, we have to assume, Crowdcube didnt know about.  On July 14 2017,  Elliot Hall, the founder, posted a notice  - here.

It is clear  from this, that the round was to be closing soon and it reads

''We will be pausing as far as any further investment is concerned and driving up the value of our business by going live with many venues''. 

So what are they now doing on CC - Hill Walking? It goes on to say that this round was oversubscribed. There is no evidence that £900k has been raised, although the value has certainly gone up! However Elliot Hall says the £900k was raised, plus some - here on Angels Investment Network  - 

  - https://www.angelinvestmentnetwork.co.uk/testimonial/elliot-hall-zapaygo/890

This unfortunately is entirely contradictory to the figures these guys have used on Crowdcube  - covered off as usual by Crowdcube's lazy, myopic DD Dept - where there is no sign of this £900k plus. You begin to wonder. But wait....

Zapaygo(v.1 to v.5), which one is a Q you will have to consider at the bottom of this post, were shirt sponsors of Championship side Brum City for 2014/15 and 2105/16 according to their CEO - here. However something must have gone wrong in the wash as the shirt for 15/16 had another name on it. 

The company does have signed deals with NEC Group and Verteda EPOS and has just announved a new agreement with Rimilia Holdings. All look good as conduits to collect potential numbers to press ad revenues out of.

The new version of the app is on iTunes. The owner of the app on there is down as Zapaygo Ltd not Zapaygo Investments. There appears to be no legal link between the two (see below). They say on the Zap website it is also available on Google Play but the link disagrees.

Zapaygo UK and Ireland Ltd tried to raise money on an ECF platform called Eureeca based in Dubai in 2016. The CEO of this Zapaygo here, Mr Hall, was tweeting this campaign in support of it. Having spoken to the CEO of Eureeca, we can confirm that this campaign failed and raised no money. Mr Hall has confirmed that in the last 6 years, he and friends have out in around £1.5m. 

Zapaygo Group Ltd, originally Zapaygo Ltd, a company whose two directors and major shareholders make up 2/3 of Zapaygo Investments' Directors, changed its name to Z&T Ops UK Limited. Of all the Zapaygo companies, this one has been funded but has a BS in the red at the last filing.  

Zapaygo Invetsments has what can only be described as a very shallow capital base from which it is launching this £500k campaign. The company claim in this CC campaign, that the founders and directors have invested money in the company - well £100k is a not much when you consider they are now claiming it's worth nearly £10m. The campaign goes on to state the company will offer an ICO as part of its plans to launch a new cryptocurrency. Nice.

The Confirmation statement dated 8 June 2017 is misfiled. The company at that date had 1m shares allotted not 100. So one is forced to assume that the £90k invested in May and June 17 in two separate tranches has been left off this Confirmation statement for some reason. Or maybe it was actually £900k but someone missed a zero. Slippery little blighters and these guys seem prone to mistakes. It certainly makes making any sense of this company that bit harder.

The CEO and CFO do not own any shares in Zapaygo Investments Ltd, as of June 8 2017. All 100 shares are owned by Elliot Hall, who previously had a company called Zapago Ltd dissolved in February 2017. Y you might ask? The same Elliot Hall punting the company to the Angels Network. The CFO has no credentials and was involved a few years ago with a company which lost investors over £1m.

Looks like Zapaygo have been trying for a while. We found this gem from February 2015 - 
The company featured seems large and very successful but a little digging reveals a shell owned by the one person with nout in the bank. There is a pattern there somewhere.

Just to top things off, this company projects that from where it is now, by the end of its second year, it will be making over £2.8m EBIT.

Processing and ad revenues will be followed by data mining giving the company 3 revenue streams for now.

They have SEIS AA but we think this is a bit iffy. Zapaygo's trading is under 2 years old, so its fine. But the trade is it carrying out has been, it could be argued, carried out for at least 4 years in various forms by Elliot. He is now the CEO of the SEIS company. That is strictly speaking against SEIS rules. As HMRC operate a self assessment tick box exercise for AA, you can never be sure that when you hit the jackpot and HMRC actually delve into the company, they wont change the ruling. They retain the right to do so. It is a grey area as no one has yet cashed in via ECF.

Good luck to all those who sail in her.



4 comments:

  1. Just to clarify...it definitely IS on Google Play...

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  2. Ah - thats an old version I think. We couldnt get the link to work but that maybe our fault. In terms of the other issues this hardly seems noteworthy though!

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  3. It has been there (on the google app store) from 7 June 17 and over the last ~6 months somewhere between 10 and 50 people have downloaded the app.

    At that rate, they may hit 100 downloads(*) by June 18.
    (*) it is also in the Apple store.




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