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L-Pesa Microfinance

L-Pesa Microfinance is a fintech startup poised to take advantage of the fast-growing need for financial services in the developing world. The company has validated its operating model over the past 24 months and has built sophisticated technology, automating most of the operation. Its primary barrier to growth at this point is its ability to fund user acquisition and loans. The loss ratio on loans runs below 10% while return on loans is approximately 25%.

The idea for L-Pesa was incubated for a decade, and the business was launched at the time four important market forces converged to allow scaling:

• Big Data, Artificial Intelligence & Blockchain
• Alternative Credit Data
• Mobile Technology
• Biometric Identity
L-Pesa has harnessed these market forces and built technology and a proprietary credit scoring model that allows it to quickly scale microlending in developing countries while keeping loss ratios below 10%. The solution is highly automated, allowing a small back office team to support high volume loan origination. All loans are serviced by L-Pesa.

Network Effect

L-Pesa is not a charity. L-Pesa is purely a business. Being a business gives us certain freedoms that charities don’t have. As a business they have to provide a return. In facilitating microfinance, they have to be extremely efficient; the cost of doing a $1000 loan is the same as $100, and due to operational costs, banks and financial institutions are limited in how low they can go. Blockchain brings transparency and efficiency, and it drastically reduces the operational costs, making the small lending viable. Tokens are efficient transactionally over fiat, so they are more appealing to the L-Pesa target market, and they also assist in building a community and creating a network effect.

Market problems

Microfinance has a long history around the world and for centuries has filled an important need. In fact, various forms of microfinance had a major impact on economic development in Western Europe in the 18th and 19th centuries. In the past 50 years, microfinance has started making an impact in Asia and Africa through organizations like Grameen Bank. However, traditional microfinance has limited reach, and solutions have been targeted towards poor farmers and small business owners. Middle class consumers and business owners in developing countries have an unmet demand for credit, but the current financial infrastructure in these countries does not support credit underwriting.

Market dynamics

Target markets
L-Pesa will target markets containing over 40% of the earth’s population: Africa, the Indian subcontinent, and Southeast Asia. Current population is over 3 billion people, and the population is growing quickly. L-Pesa is a mobile-first solution, predicated on the use of mobile phones. The current penetration of mobile technology is very high and growing: India is at 92% penetration and many African countries are above 70%. L-Pesa works on both smartphones and feature phones. L-Pesa relies on mobile money service providers for disbursements and collections, making the process fast and efficient. Many countries initially targeted by L-Pesa have a high proportion of unbanked population, making mobile money services such as M-Pesa a good choice. India has a higher percentage of population with bank accounts, and the Aadhaar biometric ID database is now linked with bank accounts, making disbursement and collection in India potentially very efficient in the near future.

Token Launch Summary

Token name: KRIPTON
Token ticker: ​LPK
Token owner: ​L-P Kripton ltd., Suite 2B, 143 Main Street, Gibraltar GX111AA.
Company Number: 116865
REID Number: GICO.116865-49
Token type: ​Ethereum ERC20
Total tokens issued: ​Maximum total of ​2,600,000,000. Final number of tokens created will be calculated according to final amount of contributions. The final number will be published by the end of the ICO.
Mining: ​There shall be no mining or other means to increase the token amount, save a second ICO in the future.
Use of proceeds: ​See “Use of Proceeds” section in this document.

For more information, visit the Website or read the Whitepaper.

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