Fintech Startup Financial Model – Case Study

Introduction

The Oak Business Consultant prepares the following case study. This case study is about a fintech startup that wanted to raise funds for their company with the help of an excel financial model.

This case study presents the process and analysis techniques used to prepare a fintech industry financial model. Furthermore, the financial models designed by our company are continuously adjustable. We incorporated complex formulas to update the model within a few seconds. Furthermore, we separately provided an input sheet in which you can input your values, and the whole financial model will update itself accordingly. 

Requirements

• Our client wanted us to prepare a financial model forecast for the next three years so that our client could plan accordingly for the finances and other needs.
• As the fintech industry is unlike any other traditional industry, our client wanted to know about the industry’s market size. 
• The client was not sure about the financing. The client company was still looking for the best financing options for their fintech startup business. 
• Our client company was still figuring out the number of employers to be hired. Also, the number of salaries and other benefits to be offered to them. 

Solutions

• Our team developed a financial model forecast presenting all the needs of the finances and other costs that must be incurred. 
• With extensive research about the fintech industry, we estimated the market size of the fintech industry. Moreover, we estimated the serviceable obtainable market for our client. 
• As our client company was unsure about the financing, we prepared a detailed scenario analysis for our client’s fintech startup, including financing options from banks and private loans. 
• Our team prepared a dynamic monthly employee payroll sheet, from which our client company can put values when they hire an employee with a particular salary. 

Financial Highlights 

Income Statement 

To analyze the profit and loss of the business, we prepared a dynamic income statement with complex linking and excel formulas. It allows our client to put different assumptions and values, and the model will update itself. We prepared the income statement for the next 36 months. It includes all the details regarding revenue, cost of goods sold, gross profit, expenses, depreciation, taxes and net profit. Our client can easily identify monthly profit and loss with this fintech startup financial model.

Balance Sheet 

Our team prepared a forecasted balance sheet for the next 3 years to better understand the business’s financial position. It indicates all the assets and capital owned by the company and the number of payables and liabilities that the company has to pay to the lenders and creditors. 

Cash flow Statement 

We prepared a cash flow statement to analyze the cash position of our client’s fintech startup business. The cash flow statement shows the cash inflows and outflows for the next three years. The business made cash outflows in the first year of operations in the investing activity and invested in branding and other assets. Moreover, it can be stated that the company’s cash flow position is satisfactory, as it has been getting cash inflows for all the years. 

Sensitivity Analysis 

Our experienced financial analysts create the price sensitivity sheet to include price adjustments and determine the selling prices for various products. With the help of sensitivity analysis, our client can calculate the business’s profitability on different price levels. 

CAC – CLTV Analysis

Our team prepared the CAC and CLTV analysis for the client, as the client wanted to inquire about the customer acquisition cost and lifetime value. The customer acquisition cost gives an idea to the client of how feasible it is to get customers for the company. If the cost of each customer is more than the revenue earned per customer, then the company’s growth will not be sustainable. 

Dashboard 

To summarize the results and outcomes from this fintech startup financial model, our experts designed the dashboard to present the forecasted findings in a graphical form. With the help of diagrams and charts, it is much easier and simpler to understand the financial model’s findings. With the help of this dashboard, our client can make financial decisions and attract investors. 

Conclusion 

The fintech industry has exceptional potential to grow. Fintech is making payments, transfers, and other financial tasks easier. It is the future. All people in the near future will prefer fintech over traditional systems. 
Our top financial analysts from the Oak Business Consultant team worked on this project and prepared an advanced and complex financial model for our client’s fintech startup. Our team always looks forward to providing exceptional business and financial solutions to help our client achieve their maximum potential.