RE: Wow! Serious Potential17 Aug 2020 21:19
Supply@Me is an early-stage financial technology, or FinTech business. It operates a technology platform that enables manufacturing and trading customers to improve their working capital position by releasing capital from their inventory stock.
The business model is similar to other peer-to-peer lenders. The company matches capital invested by its inventory funders to enterprises that need money. The platform earns a fee on the income generated from the loans and “inventory monetisation“.
As the business is only just getting started, it isn’t easy to figure out how much the Supply@ME Capital share price is worth. That said, it’s clear the company has tremendous potential.
It originated more than €300m of prospective “inventory monetisation transactions” in its first six months of operation. Meanwhile, it’s estimated that the total size of the inventory financing market is €2trn.
If this FinTech business can grab just 1% of the total addressable market, the Supply@ME Capital share price may be able to continue its impressive performance. That 1% could mean €200bn of prospective inventory monetisation transactions for the firm. By comparison, the current market capitalisation of the group is just over £100m.
Therefore, the Supply@ME Capital share price looks cheap based on its potential market