Payhawk Financial Model

• Unified platform connecting corporate cards, bill payments, cash/employee reimbursements, and pre-accounting into one system
• Sits between existing bank accounts and ERP systems (SAP, Dynamics, Oracle, NetSuite, Sage, Xero, QuickBooks); plug-and-play, no bank or ERP migration required
• Eliminates manual reconciliation; claims to cut finance team operational work by 50–70%
• Global card issuing: debit cards + deposit accounts in Europe; credit cards in N. America, Australia, Asia, S. America; credit cards in Europe flagged as Q1'22
• OCR in 60+ languages for automated invoice data extraction
• Multi-currency spending with 0.9% FX markup on non-EUR/GBP/USD transactions; SEPA and Faster Payments for bill pay
• Connects to 3,000+ banks via direct integration, providing virtual accounts and dedicated IBANs
• Security: PCI DSS Level 1, ISO 27001, SOC2, SSO/SAML, geofencing, four-eyes payments
• Real-time spend controls: per-card limits, allowed MCC categories, merchant blocks, day/time restrictions

Three revenue streams, all described qualitatively - actuals redacted in deck:

1. Subscription (SaaS MRR): Monthly software fee per customer; described as high relative to fintech peers because Payhawk is positioned as a software layer, not a payments company
2. Interchange & Fees: Earn 100% on interchange via Visa Corporate BINs (high interchange tier); FX markup fees on non-base-currency spend; transfer fees
3. Services: Mentioned as third revenue line in P&L structure; nature not specified

Revenue per customer compounds rapidly with expansion (additional entities, more cards, higher transaction volume, new modules) - illustrated by cohort data showing NRR well above 100% from Q0.

Pricing not disclosed. Sales cycle: 2–3 months for high-growth companies (Series A+, revenue $5M+); 3–4 months for enterprise/multinationals (500+ employees, $50M+ revenue).

Cohort Revenue Retention (Slide 10 - image confirmed):

Note: Cohort base includes MRR + interchange + fees.

• NRR is strongly negative churn: Q1 average 238%, implying very rapid expansion revenue
• Customers described as ranging from 2 to 10,000 employees; product active in 22 countries at time of early product
• Named customers include MacPaw, By Miles, zenloop, Nexo, Gtmhub, Sellics (growth segment) and Lotto24, ATU, Viking Life-Saving Equipment, novum Bank, Luxair, TBI Bank, Candelas (enterprise)
• Customer count not disclosed; revenue absolute figures redacted in all financial slides

Unit economics slide (Slide 11) has all values redacted ("x"). Qualitative commentary only:

• Revenue per customer = Subscription MRR + Interchange MRR
• One-off setup costs: KYB/KYC check + card issue & shipping
• Monthly recurring COGS: Issuer & Visa scheme fees; Google image processing/storage; merchant fees (payment gateway)
• "Relatively high gross profit in the fintech space" due to SaaS pricing power and multi-vendor card/processor deals
• Gross profit disclosed to exist for both month 1 and subsequent months, with month 1 lower (setup cost drag) - no figures
• LTV significantly increases with product maturity while CAC decreases (directional claim only)
• CAC and LTV line items appear in P&L forecast table but all values are redacted

Competitors named: Revolut Business, Tide, Starling, Penta, Qonto, Monzo (banking/current accounts); Expensify, Pleo, Soldo, Spendesk, Mooncard, Moss (spend/expense); Bill.com, Libeo, Melio, Roger, Regate, Pennylane, ReceiptBank (bill pay); Barclays, SAP Concur (legacy)

Stated moat:

• Horizontal issuing strategy via multiple processors/issuers (vs. single-vendor dependency of competitors)
• Enterprise-grade ERP integrations (SAP, Dynamics, Oracle) that neobanks and SME-focused peers don't support
• No IT resources required for deployment - CFO-led, not IT-led
• Multi-entity, multi-country architecture (competitors are single-country point solutions)
• Expansion revenue model - customers grow revenue automatically as they scale

Team (Slide 2):

• Hristo Borisov - CEO; ex-Telerik Director of Product (11+ years); managed 180-person product org and $30M budget
• Boyko Karadzhov - CTO; ex-Telerik; US patent pending for AI co-invented with Hristo
• Konstantin Djengozov - CFO; ex-Telerik; co-managed $30M budget
• Telerik was acquired for $263.5M; 80% of dev team is ex-Telerik

Key hires: Desiree Schildt (Head of Growth), Thomas Westerhoven (Head of Sales), Inigo Navas (Commercial Director, Spain), Manuel Holzer (Commercial Director, Germany)

Investors: QED Investors (Yusuf Özdalga), Earlybird (Roland Manger), Vassil Terziev (Telerik co-founder, Eleven), Mark Antipof (ex-Visa CCO), Keith Robinson (Sage CSO)

Offices: London, Berlin, Barcelona, Sofia

Archetype + why: SaaS + Payments hybrid P&L with cohort-based expansion revenue. Payhawk has two fundamentally different revenue engines - a SaaS subscription (predictable MRR per customer) and a transaction-volume-driven revenue layer (interchange, FX, transfer fees). The cohort data shows NRR of 238%+ at Q1, meaning expansion revenue dwarfs new logo MRR; a pure SaaS ARR model would understate revenue trajectory. The P&L structure shown (Slide 12) is a standard 3-statement-lite with CoS split between card/issuer costs and infrastructure, plus full OPEX breakdown and EBITDA. Recommend a cohort-driven SaaS + payments P&L with a 3-statement output.

Forecast horizon & granularity:

• FY19 Actual, FY20 Actual as anchors (values unknown but column structure confirmed)
• FY21–FY23 Forecast horizon
• Monthly granularity for cohort build, quarterly roll-up for P&L summary
• Model should follow the deck's FY19–FY23 structure to match pitch narrative

Key drivers & assumptions:

*Customer acquisition:*

• New customers per quarter
• Customer mix: % high-growth SME ($5M+ revenue) vs. enterprise ($50M+)
• Sales cycle: 2–3 months SME, 3–4 months enterprise

*Revenue per customer:*

• Subscription MRR per customer by segment
• Average monthly card spend per customer (drives interchange)
• Interchange rate: Visa Corporate BIN - Europe ~0.3–0.5% of spend; other regions vary
• FX revenue: 0.9% markup on non-EUR/GBP/USD spend
• Services revenue: small line;

*Cohort expansion / NRR:*

• Quarter-on-quarter revenue expansion per cohort
• NRR stabilises after Q4

*Gross margin:*

• Setup CoS: KYB/KYC (one-off) + card issue and shipping (one-off)
• Recurring CoS: Issuer + Visa scheme fees; cloud/OCR processing; payment gateway

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*Headcount:*

• Primarily R&D and G&A in Sofia (lower cost), commercial in UK/Germany/Spain

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*CAC:*

• Fully loaded CAC tracked in P&L but all values redacted

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*EBITDA margin trajectory:*

• Deck implies heavy investment phase through FY21, moving toward profitability by FY22–23

Scenarios (Base / Bull / Bear):

Required sheets / outputs:

1. Assumptions - all drivers in one place with/ tags
2. Cohort Engine - quarterly cohort build (logo count × revenue per cohort quarter)
3. Revenue Bridge - new MRR + expansion MRR + interchange + FX + services
4. P&L - follows Slide 12 structure: Revenue → CoS → Gross Profit → OPEX (headcount, marketing, facility/admin, IT, travel, services, financial, other) → EBITDA
5. Unit Economics - CAC, LTV, LTV:CAC, payback period
6. Scenario toggle - dropdown selecting Bear/Base/Bull
7. Dashboard - KPI cards: ARR, NRR, Gross Margin, EBITDA, Customer Count, LTV:CAC