AUD Seeking up to $2.5M (AUD) at a price of $1.85 per share
“Australia’s superannuation system is less mature for the self-employed than for employees.”
-The Association of Superannuation Funds of Australia (ASFA)
For many years, the superannuation industry’s neglect of the self-employed was perhaps understandable: membership of the Big Super funds was not driven
by individual choice, but mainly by employers, planners and unions who signed members up to these funds by default.Given these members had to contribute
by law, and represented 90% of the workforce, this became a profitable land grab.
Recent trends, including a global pandemic, have rapidly changed the landscape.The pace of change is accelerating, and we’re seeing a macro shift in the
way we work. Contractors, home-workers, and freelancers now make up a significant and growing part of the workforce.The way we operate and connect
professionally has changed immensely in the last decade.We get work from platforms that double up as communities.While we now use online business tools
by default, good professional advice is still hard to get and harder to afford.
GigSuper is the first mover in a new category of super that addresses the needs of 2.2 million Australians – and growing.
Self-employed Australians are hugely disadvantaged in terms of retirement savings. The majority of self-employed Australians have lower levels of superannuation
across all age groups compared with employees and most will struggle to achieve a comfortable retirement.
This is because Big Super builds products and services that make easier for employers, planners and their traditionally employed members. Self-employed
members don’t have the luxury of a payroll department to process super contributions and tax instructions.
Put simply – they have to do it themselves, and it’s not easy.
This complexity means only 25% actually contribute regularly and less than 10% claim the tax benefit. That is why despite a lifetime of hard work, self-employed
people will retire with 50% less than their employed counterparts.
The Competitive Landscape
Big Super is easy to use when you are an employee – start a job, tick a box, and every quarter your employer makes compulsory contributions on your behalf.Applied
across a lifetime of work, 80% of the working population has a substantial super balance available to them at retirement. In fact, it becomes the most
significant asset after the family home.
But the rules of engagement change when you are self-employed.And Big Super is focused elsewhere.
Where GigSuper Competes
“The lack of super for self-employed people is a major concern for the Association.The GigSuper offering is a fantastic solution to boost the retirement savings of more than 2 million self-employed Australians.We strongly recommend that our members consider GigSuper.”
-Mark Flack - Director Partnerships, SME Association of Australia
GigSuper strips away the preconceived notion that every working Australian is an employee and receives employer contributions. That’s simply not the case
for a self-employed person. By tailoring the GigSuper strategy and experience to the needs of self-employed Australians, GigSuper aims to become the
benchmark for how self-employed folks engage with their super fund, and save for their retirement.
GigSuper competes in ways that Big Super doesn’t. GigSuper:
Integrates into self-employed communities
Presents super from a self-employed perspective
Automates contributions and tax deductions
Helps with cashflow
Provides the right insurance
Provides tools, services, and content that help members not only with their super, but also with their business.
The GigSuper app also has a number of product features designed specifically for self-employed members, including a built-in saver account, automated tax
claims, insurance cover, life stage investment options, digital nudges, and one-touch consolidation.
And it works. Compared to the wider self-employed cohort, GigSuper members are 3 times more likely to be contributing to super and 4 times more likely
to be claiming contributions as a tax deduction.
Member Acquisition Strategy
The majority of self-employed people have an existing super balance somewhere, however disengaged they are with it, generating revenue for that fund in
the form of fees. These fees go towards delivering on the fund’s purpose and self-employed members see very little of that value. This can be disrupted.
GigSuper’s target audience is seeking assistance and guidance in running their business. This is an immediate need.
Business support networks, professional groups, peak bodies and industry forums are hugely popular for this reason. These unique communities allow self-employed
people to crowdsource business solutions efficiently, find ongoing support, access resources, and forge valuable personal connections to grow or sustain
their business. This presents an opportunity.
GigSuper brings these three elements together, offering self-employed people a unique opportunity to unlock the value in their super to address a more
immediate purpose – their own business. And in the process, create a client acquisition moat.
The GigSuper business is highly scalable business and generates fixed and variable income in three ways:
Assets Under Management fees (AUM) fees
Rebates from insurance premiums
GigSuper expects to grow from 3,000 members after Year 1 through to 56,000 members after Year 5.
Through a typical GigSuper member with an initial rollover of $30,000, the company would generate income of around $237 in the first year. As the member’s
account balance increases through ongoing contribution and underlying growth, this will increase materially; over average member account life of over
16 years, GigSuper estimates average member life income in the range of $6,500 to $8,000.
GigSuper was founded by:
Martin Batur, CEO and Director – Martin is a former Head of Dealing and Corporate Strategy Manager at IG Group. Over 10 years, Martin was responsible
for all elements of dealing including execution, new product creation, system development, risk management and international expansion. He holds
a Master of Applied Finance, Bachelor of Engineering and Bachelor of Commerce from The University of Melbourne. At GigSuper, Martin is responsible
for leading the overall strategy, operations and finance.
Peter Stanhope, Head of Partnerships and Director – Peter held various sales positions within IG Group including Head of Sales APAC, where he was responsible
for optimising customer on-boarding, ensuring compliance with regulatory obligations and driving the businesses expansion into Australia and Asia.
He holds a Bachelor of Commerce from Monash University. At GigSuper, Peter is driving our partnerships and affiliate programme, as well as customer
Branka Injac Misic, Head of Customer Experience – Branka is the former CMO of high growth, online retailer Arlo & Co where she built their community
to 130,000 members, as founded online commerce store One Tiny Tribe, which she grew to 75,000 members. She was also a key member of the team at
Australian fintech success story Nimble. She has been involved in winning multiple small business and marketing awards, including being personally
nominated as one of LinkedIn’s top 10 ‘Power Profiles’ in Advertising and Marketing. At GigSuper, Branka is building out our network of community
influencers, as well as creating and executing our marketing plan.
The Company is seeking up to $2.5 million in equity funding, by way issue of up to 1,351,351 ordinary shares, at a price per share of $1.85 (“the Offer
The close date is 30 April 2021, or such later date as the Company may decide.
With the exception of short-term liabilities, the investment funds will be applied to operating expenses of the Company, principally directed to member
acquisition activities and growth.
The most likely exit for investors will be a trade sale after scale in members and funds under management is achieved. Assuming an exit at the end of year
six or year seven, and those assumptions detailed in appendices to the Information Memorandum (available on request), indicative investor returns are:
Gross return of between 6.9 and 10.8 times funds invested
Gross internal rate of return between 38.0% and 40.5%