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How @TriterrasGroup is using blockchain technology on @KratosPlatform to fill a $1.5T gap in the global finance system (as Act 1, with more to come)-
A thread on $TRIT:
A thread on $TRIT:
Because of BASEL III, large banks have pulled out of lending to small and medium commodity enterprises (SMEs) in smaller countries, over time. The potential gain compared to collateral needed and risk simply isn't there, at least within the way commodity trade currently works.
We're talking about $1M-$10M loans for single legs of ocean shipping journeys of things like palm oil or grains from Indonesia to various destinations, for example. "Traders" take on this risk, buying from producers, securing loans for shipping, and selling to a buyer.
This whole process, particularly with SMEs, still takes place mostly using paper, and by faxing documents, with zero electronic record keeping or back up. Paperwork loss, forgery, and legibility become issues more frequently than they should and this presents big risk to lenders.
Even when everything goes perfectly, the entire process takes about 14 days, from due diligence to securing loans to sending a loaded ship into the ocean. Shortening this process while increasing trust is a $1.5T opportunity.
Using an etherium based system, @TriterrasGroup's @KratosPlatform brings together lenders and commodity traders onto a digital platform with verifiable trust and speed of transactions at its core.
Documents and contracts can be entered into the network's blockchain which then makes them both immutable (without a record of change) and accessible from anywhere in the world. The record keeping module alone has brought some lenders onto the platform.
Triterras onboards about five new traders onto the platform a month (and number I hope to see grow much more). They now have ~55 traders onboard. All traders are background checked and verified before begin given access to Kratos, so lenders are only working with trusted traders.
All of this combined helps reduce the average trade deal time from 14 days to as little as 2 days, allowing traders to move goods faster and conduct more total transactions, all with accurate record keeping and less risk for lenders.
Triterras collects a 0.3% fee on simple trade transactions and collects a 1.3% fee on finance deals reached on platform. The average fee per transaction is currently rising as more finance deals close using @KratosPlatform.
So. With 46 current employees, @TriterrasGroup $TRIT is expanding fast while sitting on a post-SPAC cash pile of over $180M. They plan to use this cash for acquisitions that will more quickly increase the number of users on Kratos (such as buying an offline trade platform).
Every new trader and lender added onto the platform has network effects, as they tell their clients about the platform and ask them to consider joining for the ease of use. @TriterrasGroup said in a recent call that a very large lender is currently in the pipeline to join Kratos.
What lies ahead? More modules are coming. Traders and lenders ultimately want a platform that allows them to conduct every part of a transaction without leaving the platform at all. @KratosPlatform is not there yet, but it gets closer every month...
Insurance and logistics modules were added recently (in Q3). @TriterrasGroup expects these to be more of value added services than revenue drivers, but they should create some revenue along the way.
Two different payment modules are planned to be released between January and April. One will allow for blockchain enabled cross-border payments, and the other will enable traditional bank payments to be transacted within the platform itself.
In February, @TriterrasGroup plans to add a Supply Chain finance module to the platform. Lenders and traders are already being worked with to ensure a smooth launch. They expect this to contribute ~15% of future revenue, and this revenue is not included in current projections.
If the supply chain module is remotely as successful as the current trade finance module, the sky is the limit for @TriterrasGroup. Triterras has already shown that providing a platform that solves real huge problem can be profitable for everyone involved.
Concluding- There is a lot to be excited about here. Not even mentioned in this thread is that @TriterrasGroup is already cash flow positive, with estimates of $17M in revenue and $10M in earnings in Q3, a net profit margin of 59%. Growth is expected to continue at ~70% per year.
Please do your own further research. All potential investments carry risks. Thank you for you time, and I hope you enjoyed learning about @TriterrasGroup and @KratosPlatform
$TRIT
$TRIT
@saxena_puru @JonahLupton @DPogrebinsky Hope this helps explain $TRIT and it's huge market opportunity to more people. I wouldn't have found the company without you all mentioning it first. Thanks.
