# Veem Financial Model

B2B cross-border payments platform enabling SMBs to send and receive international payments cheaply and instantly via multi-rail routing (blockchain, local payment rails, bank partners).

- Canonical: https://finamodel.com/startups/veem
- Excel download: https://finamodel.com/startup-models/veem.xlsx
- Category: Crypto/Web3
- Model type: Marketplace / GMV
- Funding round: Strategic round
- Funding: $31M
- Founded: 2020
- Geography: Global; target market SMBs <100 employees; 100+ countries served [DECK slide 9]
- Customer: B2B2C

## About the company

Veem is a B2B cross-border payments platform for SMBs, using blockchain, local payment rails, and bank partners to route international transfers. It aims to make sending and receiving payments cheaper and faster for businesses that might otherwise rely on fragmented banking and correspondent networks.

The platform serves more than 100 countries and targets SMBs with fewer than 100 employees. Its commercial structure is payments-led, not subscription SaaS: revenue comes from a percentage of payment volume, FX spread, and potentially flat transaction fees, while partner routing costs determine the retained margin.

Forecast active SMB accounts, payment frequency, average transfer size, total payment volume, FX or transaction yield, and partner mix. Deduct local-rail, bank, blockchain, compliance, fraud, support, and acquisition costs. Customer growth, volume per account, cross-border corridor mix, take rate, FX spread, partner cost, and retention should drive scenarios.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Email-initiated payments in 10 seconds
- "Multi-rail routing" - intelligently routes via blockchain, local payment systems, cards, Veem bank accounts, and bank/payment partners to minimise cost and time
- $0 send fees in 50+ countries; $0 receive fees in 100+ countries
- FX fees: 0.5%–2% (versus banks' 2%–4%)
- Address-book-based network - pay/get paid from contacts; FX optionally borne by sender or receiver
- FedEx-style payment tracking with step-by-step status
- Integrations: Oracle/NetSuite, Xero, QuickBooks, Magento, Zapier
- Incumbent comparison: banks charge $40 send + $20 receive + 2%–4% FX, taking 3–7 days

## Market

- TAM: Cross-border B2B payment revenue of $290bn (Goldman Sachs)
- Underlying volume: $135tn cross-border B2B payment volume (McKinsey)
- Addressable base: 200 million accounts globally
  - SMB (<100 employees): 110mm accounts, $32tn volume, $73bn revenue
  - Mid-Market (100–500 employees): 72mm accounts, $27tn volume, $61bn revenue
  - Large Enterprise (>500 employees): 18mm accounts, $69tn volume, $157bn revenue
- Veem's near-term target: SMB segment ($73bn revenue opportunity)

## Revenue model

Three revenue streams:

| Stream | Mechanism | Who pays |
| -- | -- | -- |
| Domestic Payments | Small flat fee per transaction | Sender |
| X-Border USD | Fee per transaction | Receiver (free to sender) |
| FX | % of payment; varies by size, currency, corridor (0.5%–2% per slide 8) | Sender or receiver |

Revenue mix (slide 12 donut chart): FX / foreign currencies appears to be the dominant segment (roughly half of the donut, orange), with domestic transfers and held-in-USD-abroad making up the balance. No exact % splits disclosed.

No dollar fee amounts given for domestic or X-border USD streams beyond "small fee." domestic flat fee likely in the $1–$5 range based on competitive context; FX take-rate modelled at 0.5%–2% per deck.

## Traction & metrics

- 225,000+ verified accounts
- 100+ countries served
- Network visualisation represents 20% of actual Veem network (i.e. total implied accounts on network larger than shown)
- Customer savings example: $5,000 in wire fees saved per year by a single client
- Example transaction shown: $16,194 USD

## Unit economics

Context clues only:
- Competitor pricing: $40 send + $20 receive + 2%–4% FX per bank wire
- Veem pricing: $0 send (50+ countries), $0 receive (100+ countries), 0.5%–2% FX
- No CAC, LTV, gross margin, or payback period disclosed.

## Competition / moat

Competitive framing:
- Direct incumbent: Bank wire (SWIFT-based), characterised as "1970s tech"
  - Pain points: 3–7 day transfers, $40/$20 fees, 2%–4% FX, no tracking, no reconciliation
- Veem moat claims:
  - Multi-rail routing optimisation (patent/proprietary routing logic implied)
  - "Pioneer, Largest Payment Processor on Blockchain"
  - Network effects - address-book-based, each new member enriches the network
  - Deep accounting integrations (NetSuite, Xero, QuickBooks) create switching costs

## Team & funding ask / use of funds

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## Recommended financial model

- **Archetype + why:** Transaction-fee + FX-spread payments model (similar to TransferWise/Wise or Payoneer comps). Revenue = (volume × take-rate) + (transaction count × flat fees). This is a volume-driven P&L, not a SaaS ARR model - no subscriptions disclosed.

- **Forecast horizon & granularity:** 3–5 years annual; Year 1 monthly. Granularity at the segment level: SMB domestic vs. cross-border USD vs. FX (foreign currency) by corridor group.

- **Key drivers & assumptions:**

| Driver | Value | Source |
| -- | -- | -- |
| Total verified accounts | 225,000 | - |
| Countries served | 100+ | - |
| TAM (SMB revenue pool) | $73bn | - |
| FX take-rate range | 0.5%–2.0% | - |
| Domestic flat fee per txn | $1–$3 | competitive context; banks charge $40, Veem undercuts significantly |
| X-border USD fee per txn | $5–$15 | mid-point between $0 (sender) and bank's $20–$40 (receiver) |
| Account growth rate (YoY) | 40%–80% | early-stage network; no CAGR disclosed |
| Active account rate | 40%–60% | standard fintech activation ratio |
| Txns per active account per month | 2–4 | SMB payment cadence |
| Average transaction value | $5,000–$20,000 | based on $16,194 example and SMB B2B context |
| FX revenue share of total revenue | ~50% | from donut chart visual - orange segment appears ~half |
| Gross margin | 60%–75% | payments processors typically 60–80%; Veem incurs FX hedging + rail costs |
| Operating cost structure | S&M + R&D + G&A | standard fintech opex; no data disclosed |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Bull:** Faster account growth (80%+ YoY), higher active rate (60%), higher ATV, FX take-rate at 1.5%–2%
  - **Base:** 50% YoY growth, 50% active rate, midpoint ATV ~$10k, FX take-rate 1.0%–1.5%
  - **Bear:** 30% YoY growth, 35% active rate, lower ATV, FX take-rate compression to 0.5% (competitive pressure)

- **Required sheets / outputs:**
  1. **Assumptions** - all drivers with scenario toggles
  2. **Account & Volume Model** - account funnel (total → active → transacting), txns/month, GMV by stream
  3. **Revenue Build** - domestic fee revenue + X-border USD fee revenue + FX revenue; blended take-rate
  4. **P&L** - revenue, gross profit, S&M, R&D, G&A, EBITDA, net income
  5. **Unit Economics** - revenue per account, revenue per transaction, blended take-rate
  6. **Market Penetration** - accounts as % of TAM (200mm total, 110mm SMB)
  7. **Dashboard** - KPI summary: accounts, GMV, revenue, take-rate, EBITDA margin

## Frequently asked questions

### Is the Veem financial model free?

Yes. The Veem model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.