Executive Summary
OVERVIEW
Daraja FinTech.co is a startup financial technology (FinTech) and a digital payment system
company. The business will be based in Nairobi, Kenya and we are able to secure a strategic and
standard office facility.
We are well aware that to run a standard Financial technology startup company can be
demanding which is why we will ensure we are well trained, certified and equipped to perform
excellently in our chosen business field.
Daraja FinTech.co, is a client - focused and result driven financial technology and a digital
payment system company that provides tested, trusted and broad - based financial technology
services at an affordable fee that will deliver complex functionality quickly. We will ensure that we
work hard to meet and surpass our clients’ expectations.
With the income inequality in the world rising to exceptional levels,the world needs to encourage
small businesses. The development of small and medium enterprises plas a crucial role in this
regard. By enhancing the business management model to small businesses, the economy revives
incredibly.
Daraja FinTech.co, has a unique business model, targeting a market that has a unique potential
for growth. By making the small and medium enterprises high tech, greatly enhancing their
productivity. Note that our model is highly scalable and not limited to small and medium
enterprises, We aim to compete with leading financial technology companies in Africa and across
the globe.
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PROBLEM
Insecure/slow/costly Payments
Most B2B merchants transactions are carried out using checks, wire transfers and automated
clearing house (ACH) methods. In other words, they are slow, costly, and subject to fraud.
lack of transparency.
Business with large inventories and a complex supply chain is caught in a web of multiple
suppliers from different states. Small and Medium Enterprises too face this challenge in Kenya.
Because of Supply chain complexity caused by globalization, most companies are subjected to
different risks such as fraud and code of conduct.
Untruly decentralized blockchains application in FinTech
Considering how irrelevant individual users have become on leading blockchain networks such
as Ethereum and Bitcoin, introduced as a low-cost, decentralized digital cash system, helping us
gain freedom from the shackles of centralized institutions. However, diving deep into the
ecosystem, the protocol, and the way things work, you get to realize that these platforms are not
truly decentralized.
SOLUTION
There’s an urgency for completely decentralized platforms where every node on the network
possesses the same responsibility and power.
Daraja FinTech.co will provide Financial Technologies and digital payment systems which
improves efficiency and transparency, down cyber attacks, real-time scalable databases to help
all business types from small and medium business enterprises realize their Financial and
Development objectives through our blockchain technology integration that would enable
businesses to streamline their investments whilst optimizing the cost.
Daraja FinTech.co will enable every device with an internet connection to interact directly with the
Blockchain. This model further removes the need to trust intermediaries to instantiate
communication and charge fees. Instead of relying on a trusted middleman, buyers and sellers
could transact directly. Anyone using the Daraja FinTech.co open protocol could create a listing
on the platform. Once a buyer wants to make a purchase, they can initiate an escrow payment
which is settled in a decentralized fashion using randomly selected arbitrators. Consumers with
no knowledge on creating listings which may involve coding may reach the Daraja FinTech.co
team who will help them to their prerequisite specifications.
However, All of the code that handles predetermined common operations and other features is
dealt with, and preloaded by the Daraja FinTech.co team onto the platform thereby reducing the
need to rely on corporations. Since there are no middlemen, employees, and managers, the fees
could be brought down significantly. Security is ensured using an in-app rating system that is
censorship resistant on account of being on the Blockchain system.
Blockchain integrated ERP and POS systems will be tailored to the needs of the business
acquiring the product, with installation, training and maintenance support provided by the Daraja
FinTech.co Team. Our Blockchain-ERP integration will enable true data interoperability for various
commercial and banking services like online payments, trade financing and contract
management facilities. ERP integrated blockchain systems solutions will enable mapping, linking
and accessing the transaction between two parties or manage the supply chain process without
having to fear the breaching of information.
Our Blockchain integrated Point of Sale (POS) & ERP systems are the first of their kind in the
Kenyan Market. Its seamless integration with back-end legacy systems will enable retailers to
process customer-facing transactions efficiently and streamline business processes connected
with these transactions in a more transparent, secure, faster and cheap way.
BENEFITS
In contrast to traditional payment methods, Daraja Pay Systems do not require providing personal
identification information such as names and addresses when making transactions. In addition,
because we use a distributed digital ledger, there is no central administrator or single centralized
record of transactions, resulting in no single failure point. Instead, management and authorization
are spread across the wider network, leaving no obvious focal point for individuals to initiate
fraud schemes. Therefore, enabling Cheaper, faster, secure and transparent transactions.
Daraja Pay System makes it easier for companies to keep track of and manage their suppliers
with ease. It helps to identify and pinpoint issues and monitor transactions. Being an open-source
technology, it enhances traceability and transparency to all the participants of the distributed
ledger.
Companies using ERP & POS systems integrated with our blockchain technology to manage their
finances, keep inventories in check, track supply chains and perform high-end transactions will
have nothing to worry about security or cyberattacks. Our System solutions will be able to create
a more transparent, secure and seamless experience tailored to their prerequisite needs.
TECHNOLOGY
Daraja FinTech.co System solution will transform any device into a node validator on the network.
users sign up and get rewarded for their participation in running a validator node until the
mainnet is launched. Once the mainnet is launched, the users perform Proof-of-Work (instead of
paying a fee) when they initiate, end, or dispute a transaction. By removing the mining incentives,
Daraja Pay Blockchain Protocol aims to offer true decentralization through a network of individual
users running a node.
The base layer protocol will maximize all of the benefits of blockchain technology for any
potential users, and reduce existing vulnerabilities. The platform has the potential to operate
globally, can run on consumer-level devices, greatly expanding the potential for rapid market
penetration while using existing infrastructure that isn’t exclusive.
In addition to being a far more scalable system, the network is also censorship resistant, and
ensures that no centralized authority can prevent users from distributing information.
Main Daraja Pay Features
Ultra-lean mobile blockchain: Daraja Pay is light in file size and heavy in the range
of options to which it can be applied. It can be used on small devices, and isn’t
going to need massive server farms to operate.
Anti-censorship: Anti-censorship is the one true value proposition of the blockchain.
By creating a network that is owned, run, and secured by its users, Daraja Pay will
create a platform that allows users to be completely autonomous.
Highly Decentralized: By re-engineering the blockchain, Daraja Pay has created a
more resilient protocol, with no central points of failure, where all participants
collaborate as equals, removing the need for on-chain governance.
A Great Protocol for Consumers: Daraja Pay streamlines and democratizes the
transfer of value and information to create an ecosystem that has true value for
users, developers and enterprises alike. For developers, Daraja Pay provides a
coding platform that is accessible and easy to build upon, using a simple web-native
coding language (Javascript & HTML5). Users gain from its open architecture, and
resilience.
Blockchain based Point of Sale (POS) system The re-engineered blockchain will generate
digital receipts which will virtually be indestructible and will always be accessible to the
customer and the retailer. Providing quick audits will be easier with the implementation of
Blockchain, since an auditor/legal authority will also be a stakeholder in the blockchain point
of sales ecosystem, they can directly access time-stamped records related to taxation and
payment. Payments will be deducted automatically from the crypto wallets of the customer
when they place an order and can be transferred to the wallet of the business owner. These
transaction details will be saved on the blockchain which can be later used for taxation or
audit purposes. Through the Blockchain technology adapted, loyalty points, and reward
coupons will be stored digitally and will be accessed anytime from anywhere. While
shopping, the customer will not be required to carry physical coupons. Besides, alerts about
the redemption of any applicable coupon will also be sent to the customers through this
blockchain-enabled platform.
Blockchain based Enterprise Resource Planning (ERP) system Our ERP blockchain
integrated solution will enable true data interoperability for various commercial and banking
services like online payments, trade financing and contract management facilities.
Furthermore, Daraja Pay ERP blockchain integrated systems do not stand on ROI ground, but
do stand on strategic grounds entailing resisting cyberattacks and other malware threats,
promoting transparency and efficiency.
MARKET
Daraja FinTech.co will initially serve small to medium sized businesses, however, with our highly
scalable business model, we aim to grow capacity to compete with the leading financial
technology companies in the African continent and across the globe.
Daraja FinTech.co will offer a wide range of cryptocurrency and digital payment services hence
we will be highly trained and equipped to service a wide range of clientele base such as;
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B2B for banks
Banks business clients
B2C for small businesses
Consumers (everyday individual clients)
ERP systems are used by multiple industries – banks, healthcare, food and beverage,
e-commerce, retail, etc. It helps most small and medium enterprises manage their accounts,
finances, supply chain, human resources and such other departments through a unified platform.
When multiple departments are required to access common data, verbal communication can
result in the partial loss of information resulting in productivity loss and no or less profit booking.
With an ERP system, multiple departments can be collaborated together to generate data
accessible by different teams in real-time from anywhere. But, in this case, how do you protect
the information that is not public and requires to be kept confidential, yet shared between some
parties? This is when the Daraja FinTech.co blockchain integrated ERP systems works wonders
where the data can be shared between two parties (here computers) to be accessed by
trustworthy individuals but this data cannot get copied.
PLAN
SALES AND MARKETING STRATEGY
We are mindful of the fact that there is fast – growing competition amongst players in the
financial technology industry in Kenya and around the globe; hence we will hire some of the best
business developers cum digital marketers to handle our sales and marketing. We aim to also
leverage google’s automated acquisition tools, we believe these will enable us to be more agile
and reach in real time to shifting consumer needs.
Our sales and marketing team will be recruited based on their vast experience in the industry and
they will be trained on a regular basis so as to be equipped to meet their targets and the overall
goal of the organization. We will also ensure that our excellent job deliveries speak for us in the
marketplace.
Daraja FinTech.co is set to make use of the following marketing and sales strategies to attract
clients;
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Introduce our business by sending introductory letters alongside our brochure to all the
bitcoin exchange and trading companies, programmers, investors, and internet – business
oriented people and organizations within and outside kenya
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Promptness in bidding for online payment platform contracts from bitcoin exchange and
trading companies cum bitcoin traders, programmers, investors, and internet – business
oriented people and organizations within and outside Kenya
Advertise our business in relevant programming magazines, radio and TV stations
Attend international financial technology (FinTech) related seminars and business fairs et
al
Create different packages for different category of clients in order to work with their
budgets
Leverage on the internet to promote our business
Join related associations around us with the aim of networking and marketing our
services; we are likely going to get referrals from such networks.
Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity
and advertising strategies that will help us walk our way into the heart of our target market. We
are set to take the financial technology (FinTech) and digital payment system industry by storm
which is why we have made provisions for effective publicity and advertisement of our financial
technology (FinTech) startup company.
Below are the platforms we intend to leverage on to promote and advertise Daraja FinTech.co;
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Place adverts on both print (community based newspapers and magazines) and electronic
media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter,
YouTube, Google + et al to promote our brand
Install our Billboards in strategic locations all around Nairobi
Distribute our fliers and handbills in target areas
Ensure that all our workers wear our branded shirts and all our vehicles are well branded
with our company’s logo et al.
Our Pricing Strategy
At Daraja FinTech.co we will keep our fees a little bit below the average market rate for all of our
clients by keeping our overhead low and by collecting payment in advance. In addition, we will
also offer special discounted rates to startups, nonprofits, cooperatives, and small social
enterprises who want to transact with cryptocurrency and other digital payment platforms.
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Payment Options
The payment policy adopted by Daraja FinTech.co is all inclusive because we are quite aware that
different customers prefer different payment options as it suits them but at the same time, we will
ensure that we abide by the financial rules and regulations of Kenya.
Here are the payment options that Daraja FinTech.co will make available to her clients;
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Payment via bank transfer
Payment via online bank transfer
Payment via mobile money
Payment via check
Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients to make
payments without any stress on their part. Our bank account numbers will be made available on
our website and promotional materials to clients.
COMPETITION
It is indeed a growing competition in the industry hence a host of tech-savvy industry watchers
warn that keeping pace of fintech-inspired innovations requires more than just ramped up tech
spend. Rather, competing with lighter-on-their-feet startups requires a significant change in
thinking, processes, decision-making, and even overall corporate structure.
A leading FinTech company in Kenya is Medina ethical finance which offers a combination of
financing solutions, savings, electronic payments, money, money transfer and information on the
practices of Islam.
Part of our competitive edge is that we can deploy new technologies, like machine learning /
artificial intelligence, predictive behavioral analytics, and data-driven marketing, automated
customer service technology, utilizing chatbots and AI interfaces to assist customers.
We also have access to highly skilled workforce, ready access to investment funding and the
capacity to comply with government regulations.
BUSINESS MODEL
Sources of Income
Daraja FinTech.co is established with the aim of maximizing profits in the financial technology
(FinTech) and digital payment industry and we are going to ensure that we do all it takes to attract
clients on a regular basis. Daraja FinTech.co will generate income by offering the following
services and products
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Operating peer-to-peer lending platforms
Digital banking
Payment services
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Investment platforms and management
Credit and lending
RegTech
Distributed ledger technology
Operating investment platforms
Investment management services
Unbanked/underbanked, services that seek to serve disadvantaged or low-income
individuals who are ignored or underserved by traditional banks or mainstream financial
services.
Sales Forecast
One thing is certain, there will always be bitcoin exchange and trading companies, people and
organizations that make online transactions that would need the services of financial technology
(FinTech) companies.
We are well positioned to take on the available market in Nairobi, and kenya and in the
cyberspace and we are quite optimistic that we will meet our set target of generating enough
income/profits from the first six months of operation and grow the business and our clientele
base beyond Nairobi to other cities in Kenya and in the cyberspace.
We have been able to examine the financial technology (FinTech) market, we have analyzed our
chances in the industry and we have been able to come up with the following sales forecast. The
sales projections are based on information gathered on the field and some assumptions that are
peculiar to startups in Nairobi, Kenya.
Below are the sales projections for Daraja FinTech.co, it is based on the location of our business
and the services and products that we will be offering;
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First Fiscal Year: $250,000
Second Fiscal Year: $450,000
Third Fiscal Year: $950,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown and internet shutdown within the period
stated above. Please note that the above projection might be lower and at the same time it might
be higher.
MILESTONES
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Business Name Availability Check: Completed
Business Incorporation: In progress
Opening of Corporate Bank Accounts: In progress
Opening Online Payment Platforms: In progress
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Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Incompleted
Purchase of Insurance for the Business: Incompleted
Conducting Feasibility Studies: Completed
Leasing a standard and well positioned office facility in the heart Nairobi: Incompleted
Generating part of the startup capital from the founder: In progress
Applications for Loan from our Bankers: Incompleted
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: In progress
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: In progress
Printing of Promotional Materials: In progress
Recruitment of employees: Incomplete
Purchase of the needed software applications, internet server, furniture, office equipment,
electronic appliances and facility facelift: Incomplete
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In progress
Health and Safety and Fire Safety Arrangement: Incomplete
Establishing business relationship with vendors and key players in the industry: In
Progress
INVESTMENT
Daraja FinTech.co. will be owned and managed by Alabu Ben and his business partner Machoka
Emmanuel. They are the financiers of the company, but welcome partners to boost the sourcing
of the startup capital for the business now limited to just three major sources.
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Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank
These are the areas we are looking towards spending our startup capital on;
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The total fee for incorporating the Business in Kenya – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – $3,300.
The total cost for payment of insurance policy covers (general liability, workers’
compensation and property casualty) coverage at a total premium – $9,400.
The amount needed to acquire a suitable Office facility in a business district for 6 months
(Re – Construction of the facility inclusive) – $40,000.
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Marketing promotion expenses for the grand opening of Daraja FinTech.co in the amount
of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount
of $3,580.
The total cost for hiring Business Consultant – $2,500
The cost for equipping the office (computers, software apps and hardware such as
Application-specific integrated circuit (ASIC) machines and other cryptocurrency and
digital payment system related software apps, internet server, printers, fax machines,
furniture, telephones, filing cabins, safety gadgets and electronics et al) – $45,000
The cost of launching our official Website – $2,000
Budget for paying at least two employees for 3 months and utility bills – $45,000
Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Miscellaneous – $1,000
Going by the report from the research and feasibility studies, we will need about Two Hundred
and Fifty Thousand US Dollars ($250,000) to set up a small scale but standard financial
technology company in Kenya.
FINANCIALS
We have been able to generate about $5,000 (Personal savings $4,000 and soft loan from family
members $1,000) and we are at the initial stages of acquiring a loan facility of $2,000 from our
bank. All the papers and documents have been duly signed and submitted, the loan has been
approved and any moment from now our account will be credited.
CORE TEAM
Alabu Ben Osiako
Co Founder
Misati Emmanuel Machoka
Co Founder
BOARD
Considering this is a startup, we are in the process of acquiring a board of directors. Deliberations
on the most suitable advisors are ongoing.