Tintra: The Future
A Global South Banking Network
The world is changing, the Global South has become a focal point for investment and their economies are growing whilst those in the west have plateaued, relatively. The world is beginning to focus on the needs of the Global South to drive financial inclusion, economic transformation and climate justice, with governments starting to work with the private sector to design blended finance solutions, especially evident at COP28.
Tintra saw very early, and now many major players are seeing the same, that to truly drive the change and innovation that is necessary across the Global South, infrastructure is required in countries that do not have legacy banking systems to enable their growth as it is happening.
Infrastructure does not exist to administer the drive to climate adaption in a profitable and scalable way in the Global South, with most familiar name banks and funds being uninterested. JP Morgan, Goldman, Citi Barclays, Blackrock, TPG & others dominate the landscape in the Global North yet there remains an absence of meaningful, scalable systems in the Global South.
Those major banks and funds have had opportunity to move into the Global South and have not taken it, perhaps even avoided it. There is an opportunity to build a Global South banking network to rival these established players. Not through the lens of neo-colonial dominance but from the ground up, supporting emerging economies to compete an even playing field in their own image, not ours.
Tintra is the first business in the world building a Global South Banking Network to solve this problem and deploying patented Artificial Intelligence to understand culture, risk and identity in a way that is culturally nuanced and pragmatic.
Our mission is to build banking infrastructure to allow full-service banking to be as easy for governments, businesses and individuals in the Global South in 5 years from now as it is in the west today.
Tintra saw the need described above very early and over the past two and a half years has been developing innovative technology, regulation and strategy to rethink how the world banks. In that time we have received meaningful buy in from a large number of governments, support from the UN, become part of a program with the US State Department and are in meaningful discussions with the World Bank.
It became clear to us a year ago that being quoted on AIM was not the right home for a multi-year project such as this. Indeed more generally public markets work best with established, mature businesses with predictable revenue streams. A business such as ours, where ideas are being invented and new strategies devised, is going to change and pivot and evolve over time, and as such, the best home for it is in the private domain.
This was notable in the life cycle of the project where, as more and more buy-in was received, more patents issued and licenses awarded, the evolution of the company in its business was not reflected in market valuation. As such our new funding partners, in fact all meaningful funding discussions were centered around private equity and not public investment. We have seen this ourselves and in the broader market generally with large name firms leaving the LSE/AIM to become private, move abroad or joining such share trading platforms such as JP Jenkins.
The process of taking the company private was challenging for all involved and took much longer than advised or anticipated, but ultimately it will allow for the next phase of the company to unlock the value that it needs to be able to solve this huge problem.
Being a public company at such early stages of the business took huge resources of time that could, and should, have been used on all hands building great technology and great relationships to allow its deployment. It had the further challenge of our having to make forward looking statements for regulatory reasons that were subject to change as we are ploughing new ground. Going forward all hands will be on building technology and obtaining licences at pace.
Having finally managed to complete the privatization the company is now focused on continuing with the building out of its strategy. Firstly its recapitalization, secondly a soon-to-be-announced (during February) merger and restructuring, and finally being able to settle down into the work of delivering the banking infrastructure solutions that we are deeply involved in building.
Over the past year we have been developing relationships with major funding partners in the Middle East. We realized that the nature of our business meant that we would be able to move faster and with more substance with a state-backed anchor investor rather than running the funding-round strategy. To that end we are pleased that we have secured three new sources of funding, two that are closed and one that we anticipate closing during Q1, along with sourcing a funding partner to allow for retail investors to exit the company should they wish to – although of course we hope everyone stays on this journey with us.
Having developed the technology and the fundamental strategy ahead of any other players we have been able to progress to the advanced stages of an anticipated merger with a state supported banking platform. This merger, which we expect to complete soon, brings the mission forwards three to four years and will allow Tintra to be a full service banking platform from launch, rather than to be a payment infrastructure for the first few years until certain milestones were reached. This meaningful transaction will be a world-first and has the potential to impact hundreds of millions of lives.
Go Forward Structure
Tintra Limited (ex-Tintra plc) will continue to remain the main holding company of Tintra going forward. New private equity and state equity will fund the business as it goes forward and this entity will form the basis of the merger should it complete.
Shareholders wishing to continue with us for the journey need do nothing. We are putting together a communications strategy to keep all retail shareholders informed and have a direct line to be able to ask questions and seek feedback by a much more active social media presence. This will be much easier as a private company where we can be more open and discussive as we go forward.
For those shareholders wishing to leave, the JP Jenkins facility will be live from today. We have shortened the usual 90-day period and the initial period will be for 60 Days for all orders to be gathered. There is an obligation for all shareholders to be treated equally so at the closing of that period there will be an equal split of shares at the 150p price.
However, there will be a second closing 90 Days after that for any shareholders that decide to take a ‘wait and see’ approach or only sell down part of their shareholding at this first opportunity.
The vote to go private received an overwhelming majority of greater than 99% so it is anticipated that all those wishing to dispose of shares and not join us on the journey will be able to do so in the first tranche.
We are looking at the last two and a half years as the incubation period for the business, one that would usually be in a private environment. The project has now matured to such a degree that big name funding partners are now involved and a merger is on the horizon, the next phase is one of delivery and growth as we focus all attention on getting banking licenses completed and technology advanced so that we can deploy quickly to address the needs of billions of people across the Global South as we use Artificial Intelligence to make Real Change ™