(“Tally" or the "Company")
Activities & Objectives 2020 - end of Q1 Update
30 March 2020
TALLY LTD, the money innovator and digital Non-Bank Financial Institution (“NBFI”) that developed the full reserve banking platform and physical asset currency, Tally®, is pleased to update shareholders about the Company’s activities and objectives.
Tally® is an independent full-reserve banking system and physical asset currency that sits outside of the traditional global banking network, while seamlessly operating with it. Tally® is money that’s insulated from inflation, bank risk and economic uncertainty associated with the fiat currency fractional reserve banking system. Tally® is not a cryptocurrency, but rather a physical asset money with the convenience and familiarity of a banking account and debit card.
Cameron Parry, Chief Executive Officer, commented: “I am pleased to report that since the release of the Tally App 2.0 at the end of January, we have jumped from 1,500 to over 5,000 Tally® account holders. This was an important early milestone to achieve regarding customer acquisition and demonstrates Tally‘s® potential for viral customer growth. And while customer acquisition is important, our attentions remain equally focused on customer activity and customer retention.
“This quarter we restructured our technology development resource and all of our front end development team are now in-house. We are now reviewing the structure for our backend development resource so that its optimised for ongoing platform development moving forward.
“The COVID-19 coronavirus disease has understandably caused worldwide concern and uncertainty, and it is having a severe impact on the economy generally. This has created some unexpected challenges for TALLY growing its business, such as a tightening of global physical gold supply, and the fact TALLY is funded in the early stages primarily through investment capital and we have a corporate strategy that includes listing the Company’s shares on a public stock market. TALLY has implemented its business continuity plan to ensure the smooth operation of its full reserve banking platform during this pandemic. The health and wellbeing of our people is of the utmost importance and we are fortunate that as a digital NBFI most of our business activities are carried out digitally, and with the necessary technology put in place, this has enabled our team to work remotely without disrupting services for our customers. We are also mindful of our shareholders and other stakeholders and hope they and their families are able to stay healthy during this pandemic. Lastly, we are aware of the increasing need for Tally® for many people in society as the financial effects of the coronavirus and central bank countermeasures are increasingly felt.”
Tally® priced in GBP at time of this announcement:
- 1 Tally® = 4.21 pence (i.e. t1 = £0.0421)
- Approx. 24 Tally® = 1 GBP (i.e. t24 = £1.00)
- As at 02 January 2020 announcement, 1 Tally® = 3.71 pence (approx. 27 Tally® = £1)
- As at 25 November 2019 announcement, 1 Tally® = 3.67 pence (approx. 27 Tally® = £1)
- As at 02 September 2019 announcement, 1 Tally® = 4 pence (approx. 25 Tally® = £1)
- As at 10 June 2019, the initial release date, 1 Tally® = 3.33 pence (approx. 30 Tally® =£1)
Product and Operational Development
- Tally® App 2.0 was released on 27th January 2020, in the UK only (which followed the release of its proof-of-concept (POC”) app on 10th June 2019).
- App 2.0 is integrated with a compliance and customer onboarding platform by API provider TruNarrative, to provide scalable compliance and fraud detection processes.
- Tally® banking accounts are connected to the UK Faster Payments network via our technology partners for immediate deposit and withdrawal between Tally® banking accounts and traditional GBP bank accounts. Tally is similarly connected to the EU’s SEPA network (Single Euro Payments Area).
- Following release of App 2.0, the Company initiated multiple pre-planned marketing initiatives, conducted with a modest marketing budget, and in mid-February an important early milestone was achieved (see below).
- Over the 19th and 20th of February, there were more than 7,000 downloads of the Tally® App 2.0 and onboarded customers jumped from approximately 1,500 accounts to more than 5,000 within two days. The Tally® App also achieved a top 10 ranking of finance apps, between Monzo and Revolut. The volume of demand for the particular promotion was so great that the Company turned off the offer after 30 hours, to manage cash resources and monitor new customer behaviour, retention and account usage.
- The rapid uptake in customer acquisition demonstrated the potential for viral growth and was a good test of the robustness and capacity of the Tally® App 2.0.
- During Q1 the front end development team was restructured and brought entirely in-house, to increase capacity for ongoing design and speed of delivering additional functionality.
- TALLY is now reviewing its platform processes and requirements for ongoing backend development.
Ongoing Business Activities
- Enhancing backend technology platform and restructure of the backend development resource.
- Growing B2C customer numbers and increasing customer activity and average balance of Tally® held per banking account.
- Reviewing revenue models to achieve optimal product and service levels.
- Progressing B2B revenue stream opportunities.
- Advancing preparations for releasing Tally in a second jurisdiction.
- Continuing to investigate ways to monetise part of TALLY’s investment assets.
Capital Raising & Asset Sales:
- TALLY’s most recent equity investment round was a pre-Series A round of funding in July 2019 raising a total of £655,000 @ 1.5p per share, of which TALLY’s board contributed £125,000.
- The Company demonstrated its ability to monetise part of its investment assets by the sale of approximately one quarter of TALLY’s shareholding in Railsbank, for £500,000 in Q4 2019, which completed in January 2020.
- TALLY plans to inject new capital for marketing and ongoing technology development of circa £1.5m through a pre-IPO equity funding round, incorporating a crowdfunding campaign to increase brand and product awareness, and add new customers.
- TALLY continues to assess opportunities to sell its investments, in part or in whole, to inject additional capital.
Steps to IPO:
- As part of its belief in the democratisation of money, TALLY intends to give the public access to owning part of the Company that is the central issuing authority of Tally®.
- TALLY realistically needs at least six months of customer acquisition and activity metrics with App 2.0 to build the investment proposition for its IPO.
- In the interim, TALLY plans to conduct a pre-IPO funding round to be completed by mid-year to allocate primarily to a marketing and communications program to grow customer numbers and increase customer activity.
- Following completion of the interim funding and suitable business growth, in Q4 TALLY will be able to review product usage metrics and assess the stock market and investment climate at the time, and determine when best to commence work to raise funds as part of an Initial Public Offering (IPO).
- If Q4 is not deemed appropriate for TALLY to proceed with its IPO plans then the Company shall endeavour to provide current shareholders with some form of a secondary private market for buying or selling TALLY shares, to satisfy the appetite for existing shareholders wishing to divest or increase their shareholding.
For further information or if shareholders have any queries, please contact our office via [email protected]
Cameron Parry (Chief Executive Officer)
Tel: +44 (0)20 8065 0215