NOAH London is just around the corner, so we sat down with Europe’s most promising startups to learn more about why their products and services can revolutionize the digital ecosystem.
Today, we’re chatting with Pere Monràs, Co-Founder and CEO of Nemuru who will be presenting on our Startup Stage at our conference on 30-31 October at Old Billingsgate.
Could you tell us more about Nemuru?
Nemuru is a point-of-sale platform (B2B2C) that is disrupting how people pay for their services and products in a simple, affordable and convenient way. It focuses on the home improvement, healthcare and education sectors. The platform offers a simple one-click process for the merchant at the point-of-sale, shortening the client onboarding process to below 3 minutes. Nemuru is affordable, as merchants are offered credit starting at 0% APR, allowing us to offer the best our risk adjusted prices. Our multi-lender approach and risk algorithms maximize our customers sales funnel. Moreover, we improve cash flows for merchants: once the loan is granted, merchants get paid immediately
When and why did you launch the business?
We launched in Spain in July 2018. Nemuru was born with the vision of empowering the point of sale, especially when selling home improvement services, so that people can pay for their services, not just goods.
Our platform connects merchants, customers and lenders and, as a credit intermediator, we enable merchants to offer simple and real-time customer financing.
What are your biggest milestones to date?
Nemuru partnered with BBVA and Banc Sabadell — two of the top Spanish banks — for funding operations, while working on new agreements. We have also partnered with online marketplaces that enjoy +200k user reach and multiple offline associations.
We have been recognized as one of the first two fintech in Spain’s fast track integration program by BBVA Open Innovation, helping us raise over +2M€ since inception (July 2018).
In terms of operations, we have developed a solid proof of concept of our MVP. We have also exceeded BP expectations in acquisition and conversion with +300 merchants and +2.2M€ in managed loans YTD, averaging a 70% monthly growth.
What is your target market and how big is it?
The Spanish market for consumer lending is estimated at approximately €43bn, growing over 10% annually. The home improvement market is currently valued at market at €18bn. 78% of Spanish individuals own the house they live in, 30% of those residents intend on improving their home in some capacity over the next year. 39% of those prospective homeowners seek financing but only 12% actually receive funding.
There are over 350k SMEs and professionals in the Spanish home improvement industry who, due to price, end up losing up to 50% of sales. Technology and access to point-of-sale lending is limited as 80% of banking portfolio is on auto vertical.
Why will you be successful?
Our team has developed an end-to-end platform to offer consumer lending at the point of sale. We offer a 3-sided value opportunity as merchants increase sales, customers get a quick, online paperless process for payment while our banking partners acquire a profitable consumer lending portfolio. This drives conversion at every stage of the purchasing funnel; attracting new customers, increasing sales and raising average order values.
We are a win-win-win company, because merchants, customers, and banks stand to benefit from Nemuru’s existence.
What is your next big challenge?
We need to reach new agreements with banks with different risk appetites in order to boost our operations, broaden our portfolio and test new products/verticals. We also must expand vertically and launch internationally to markets such as Colombia and Mexico.
What are you looking for at NOAH?
We are hoping to expand our network by meeting investors and advisors.
Are you planning to raise funds over the coming months and what criteria should your ideal investor have?
Yes, our ideal investor should focus on seed/series A stages and have expertise in fintech. Moreover, we are looking for international funds to help us launching abroad.