The Hundy, Inc. offering is now closed and is no longer accepting investments.

Hundy, Inc.

P2P Microloans for America's New Middle Class

Hundy, Inc.

P2P Microloans for America's New Middle Class

Miami, FL
Financial Services
Hundy helps people get loans of up to a few hundred dollars from the people around them via a friendly, mobile-only app. What makes Hundy unique is the loyal community it has built around those who share and celebrate their good character, a key component of creditworthiness that has been lost in the age of FICO.

$136,375

raised
353
Investors
$5.5M
Valuation Cap
6.0%
Annual Interest Rate
$100.00
Min. Investment
20.0%
Discount Rate
Conv. Note
Offering Type
06/01/22
Maturity Date
Reg CF
Offering

$136,375

raised
353
Investors
$5.5M
Valuation Cap
6.0%
Annual Interest Rate
$100.00
Min. Investment
20.0%
Discount Rate
Conv. Note
Offering Type
06/01/22
Maturity Date
Reg CF
Offering
This offering ended on November 19, 2020 and is no longer accepting investments.

Bonus Rewards

Get rewarded for investing more into Hundy, Inc.

$500+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.

Reasons to Invest

7,000 loans originated on loan volume of $750,000
92% active borrower retention rate (1 year avg)
190,000 registered users on waitlist

A unique approach to P2P lending

We are bringing to life a unique approach to peer-to-peer lending that enables non-accredited investors to get back in the game. We have raised over $900,000 from 140+ investors who believe in our vision to make small-dollar loans affordable to anyone who’s creditworthy while turning borrowers into investors. This includes nearly $100k raised in late 2019 in less than 2 weeks through a crowdfunding campaign similar to this one. Since then, we have:


  • Doubled our loans originated and loan volume

  • Increased our waitlist from 125,000 to 190,000 potential borrowers

  • Launched the lender side of our platform in beta

  • Added customer cash flow analysis to our credit model

  • Cultivated 18+ Guru-level borrowers who are eligible to become lenders

  • Started testing a new licensing model that is projected to expand our US coverage to over 50% of the country by year-end

Most of the country is living on the edge

In the past three decades, the median household income has risen 14%, while average house prices soared 290% (Wall Street Journal, Aug 2019). Despite the longest economic expansion in US history over the past decade, with wage growth failing to keep up with the rising costs of housing, health care, and college, much of the country feels crushed under the weight of a financial burden. These moments can be terrifying – waiting for a paycheck to arrive just to be able to pay rent, keep the lights on or buy food. And now, due to COVID-19, the situation just got worse for millions more. According to a just-released Federal Reserve study, around 40% of Americans earning less than $40,000 a year lost a job in March 2020 alone. 


This can force people into using debt traps, like payday loans, that charge enormous interest over the first two weeks of a loan or can very quickly bury the borrower by forcing them to pay off one loan with another. Or, they may end up paying bank overdraft fees or late fees, which can be even more expensive. Some may be lucky enough to be able to borrow from friends and family, but that can come with feelings of guilt and embarrassment. On the other side, you may want to lend money to a friend or stranger, but are worried that it won't be paid back. No one wants to be in these situations, but the reality is that they happen, and they are happening ever more frequently in the new reality we now live in.

Reward doing the right thing

Hundy has created a peer-to-peer lending community that rewards good behavior and celebrates those who do the right thing. This mobile-focused community for personal loans allows people to get the money they need quickly without going through back channels or putting themselves into financial peril. Hundy offers a financial cushion to those who are creditworthy but don't have the best credit by traditional measures, while rewarding both borrowers and lenders through a point system that allows them to earn badges and ascend in levels, demonstrating their good character to the community.


With Hundy’s mobile app (available for both iOS and Android), you can borrow up to $250 through an account that can be set up in just a few minutes. Borrowers will then receive their funds in just one business day. Hundy borrowers are given 31 days to pay back a loan, with a 60-day grace period if they’re unable to pay the loan off in the original time given. Throughout this time, there is an open line of communication with Hundy that helps to maintain one’s good status within the community. When users pay back their loans on time, they are given the opportunity to receive larger loans in the future, and in addition to that, both borrowers and lenders receive points when this happens, which can be used by borrowers towards discounts on loans or earn lenders additional cash back on their investment.  And once a borrower makes it to the top level, Hundy will match their points so they can become a lender at very preferential terms, giving many their first long term investment.

Serving America's new middle class

Over three-quarters of U.S. workers live paycheck-to-paycheck (CareerBuilder survey, January 2019), so the situation was already bleak for our new middle class. Mid-pandemic, per the New York Times, "lines of cars stretch for miles to pick up groceries from a food pantry; jobless workers spend days trying to file for unemployment benefits; renters and homeowners plead with landlords and mortgage bankers for extensions; and outside hospitals, ill patients line up overnight to wait for virus testing." Shown below: People waited in cars for food distribution in San Antonio in early April. “It does underscore the fact that so many people in our country live on a precipice,” a national food bank executive said. (Associated Press)

Given this backdrop, it's no wonder that quick access to affordable cash - even a few hundred dollars - is a must-have for most Americans. According to self-reported survey data collected with each Hundy loan, the number one use of Hundy is to buy groceries followed closely by utilities, a car payment, and help with rent. Over 75% of Hundy's borrowers make less than $60k per year.


To date, we have been lending exclusively in California via our lending license with the DBO, and have originated over 7,000 loans on loan volume of $750,000. We currently have a thousand active borrowers and investors in our community. Over 1/3 of borrowers participate in the community, which means they have paid off their loans early or on time and are posting these achievements on the Hundy Hub for everyone to see. Outside California, we have a nationwide waitlist of over 190,000 users and have begun testing a new licensing model, which should enable us to tap into this waitlist and reach over 50% of the country by year-end.

An ecosystem with network effects

On the demand-side of the marketplace, we’ve built a community of borrowers who are looking to benefit from their good character and reliability. On the supply-side, Hundy accepts accredited and non-accredited investors who pool their money together to lend to our borrowers. We incentivize both sides of the marketplace for posting and celebrating their achievements as well as encouraging all to do the right thing.

 

In our hybrid marketplace model, Hundy is the lender of record, loaning money to first-time borrowers at a cost about half of what a typical payday lender charges (177% APR during the initial 31-day term), which then drops to 60% if the term is optionally extended to 90 days. Our goal is to help our users pay off their loans and in turn, get their credit limits up. And over time, due to the unique data produced by our growing community, our underwriting will improve, which should allow us to drop APRs even further while increasing the approval rate of quality applicants. Finally, both top-rated borrowers and lenders will have the opportunity to own a piece of the company incentivizing viral promotion as the company continues to grow. Once we get these three flywheels working in concert, we'll have a powerful engine for growth.

Momentum since the last crowdfund

We couldn't have been more pleased to have added over 100 new investors to the Hundy community in under 2 weeks during our last raise with StartEngine. This created some great momentum for us and laid the groundwork for the following progress since our last filing:


  • YoY growth: We doubled loans originated and loan volume, expanded the waitlist by over 50% to over 190,000 users, and grew revenue by over 150%.
  • Product: Launched the lender side of the platform in beta with over 25% of our investors sponsoring borrowers and added customer cash flow analysis to our credit model increasing our application approval rate by over 40%.
  • Coming next: In July, we anticipate releasing the lender side of the platform from beta allowing our investors to redeem their points for cash and over 20 Guru-level borrowers to become investors by redeeming their points.
  • Future growth: Via a soon to be announced update to our licensing model (currently in testing), we project we'll be able to reach over 50% of the country by year-end with our service.

The Numbers (thru April 2020 - except where noted)

  • App installs:  237,203

  • Waitlisted users:  190,767

  • Loans originated (California):  7,015

  • Loan volume:  $757,950.00

  • March gross revenue:  $5,268.00

  • YoY (Mar '19/Mar '20) revenue growth rate:  158%

  • Loan payback rate:  92.1%

  • Annual borrower retention rate (1 year avg) :  92%

  • Community participation rate:  36%

Expanding our reach going forward

To date, our marketing has been focused on organic channels and primarily our ASO (App Store Optimization) efforts. As a result, almost all of our app installs have been sourced from the app stores, of which 90% are iOS and 10% Android. Due to licensing restrictions on small-dollar loans in the US, we have been limited to lending in California, so over 85% of our user acquisition has fallen onto the waitlist. Going forward, our plan to is to expand our available audience via a new licensing model, and to tap into that new audience using the following marketing channels:


  • Opening Waitlist: As we enter each new state, we'll invite people in from the waitlist who have opted in from that state - in some cases, this is tens of thousands of users.
  • Paid Ads - We've spent the past 6 months testing different ad channels and have been able to get one channel down to a CAC (customer acquisition cost) that is at the magic one-third of our CLTV (customer lifetime value). We plan to allocate close to 15% of the proceeds from the raise to advertising on this channel.
  • Android/Mobile Web: At less than 10% of our current customer base, Android users are a clear opportunity for us. Due to restrictions that Google has announced for small-dollar loans, we'll be releasing a mobile web version of our app to give Android users easy access to Hundy.

Hundy has created a unique community

While there are other consumer lending apps focused on non-prime loans of less than a few thousand dollars, Hundy is unique in this category because of its community-centered design. There are three layers to our platform design that each build upon the Hundy community – and the Hundy community is what sets us apart. 


The first layer is a social feed where community members can share their achievements of good character, i.e. paying a loan off early, paying off on time, or paying off after entering the 60 day installment period. Second, with this offering, we are once again opening up Hundy to non-accredited investors by enabling them to purchase a promissory note convertible into Hundy equity with an ability for these investors to sponsor individual borrowers in the Hundy community. They can sponsor anyone, or specifically look for people whose stories and/or background that they identify with. And last, both borrowers and lenders will be given an ownership opportunity in the ecosystem they help to create. This truly gives borrowers a path to financial independence, and lenders a way to help them get there while earning cash back. 

We have passion and experience

At the helm of Hundy is Pete Budlong, a veteran of two-sided marketplaces and mobile marketing platforms including Classifieds2000, Soundflavor and Yelp. Also leading Hundy is Ram Hegde who has directed engineering teams at both Nokia and Intel. Ram was hired to build the Hundy MVP prior to the founding of the company. He then came on as co-founder to build Hundy’s current platform. Our small, but close-knit team is deeply passionate about expanding financial inclusion to anyone with good character. We believe that rewarding good behavior helps to empower those who need a boost and, by creating a unique two-sided mobile marketplace for loans, we are ushering in an era in which we can say 'goodbye' to predatory lending.

Here's what our customers are saying

I cannot tell you how much of a relief that is thank you so much for being flexible with me and working with me thank you so very much! 😢😢😭😭❤️

- Racheal E., Claremont, CA on 5/16/20

 

Thank you Hundy happiness team I promise that I will take care of it as soon as I can and pay the balance off and make this right I appreciate you working with me.

- Leah M., Ventura, CA on 4/2/20

 

Thank you so very much.. I am now able to purchase my insulin from the Walmart Pharmacy. Hundy is truly an incredible service, as I’ve never had such support in the past with other companies..

- Michael D., San Diego, CA on 12/18/19


You guys are honestly life savers !!! You don’t know how helpful this was to me and appreciate it!

- Jose P., Garden Grove, CA on 10/22/19


Appreciate it and so much thanks to you.. and the whole Hundy team!

- Ariel L., Salinas, CA on 10/7/19

Meet our Gurus and Ninjas

Our community is nearly 4,000 members strong, and at the top we currently have 20 Guru and 77 Ninja borrowers, which are the two highest status levels in the Hundy point system. Once a borrower becomes a Guru, they unlock their ability to become investors on the platform. This will be quite a turnaround for these folks who just a year or two ago were struggling to borrow a few hundred dollars.

P2P lending 2.0 powered by Hundy

The one disappointment of the last decade is the lack of opportunity for individual investors, particularly non-accredited investors.

— Peter Renton, Co-founder Lendit & Editor Lendacademy.com

We envision a world in which anyone who is creditworthy has access to an affordable financial cushion from the people around them, particularly non-accredited investors. With the growing financial struggles facing our new middle class, the ubiquity of mobile devices, and the new crowd-based regulatory advancements made available by the JOBS Act, we believe Hundy is perfectly positioned to deliver on our vision as these three major generational shifts come together.

Invest in Hundy

We chose to work with StartEngine because allowing real people, not elites or institutions, to invest in loans via Reg-CF is fundamental to our business model. In addition, equity crowdfunding enables both our borrowers and investors to own a piece of the company giving everyone an opportunity to participate in the business.


The growth of our borrower community based on the sharing and celebration of good character is accelerating. After our last offering went live, we added our crowdfund investors to the community for the first time. Shortly after this offering goes live, we'll further link our borrowers and investors together in the community while expanding our geographic reach significantly. Please join us in making this a reality by becoming part of the Hundy community with your investment today!

Offering Summary


Company

:

Hundy, Inc.

Corporate Address

:

78 SW 7th Street, Suite 500, Miami, FL 33130

Offering Minimum

:

$10,000.00

Offering Maximum

:

$448,375.00

Minimum Investment Amount

(per investor)

:

$100.00











Terms


Offering Type

:

Convertible Promissory Notes

Type of Equity Converted Into

:

Common Stock

Conversion Trigger

:

$1,500,000.00

Maturity Date

:

June 01, 2022

Valuation Cap

:

$5,500,000.00

Discount Rate

:

20.0%

Annual Interest Rate

:

6.0%
















What is a Convertible Note?

A convertible note offers you the right to receive Common Stock in Hundy, Inc.. The amount of Common Stock you will receive in the future will be determined at the next equity round in which the Company raises at least $1,500,000.00 in a qualified equity financing. The highest conversion price per security is set based on a $5,500,000.00  Valuation Cap or if less, then you will receive a 20.0% discount on the price the new investors are paying.  You also receive 6.0% interest per year added to your investment.  When the maturity date is reached, if the note has not converted then you are entitled to receive Common Stock equal to your investment and interest back at a price per security determined by dividing the Valuation Cap by the aggregate number of outstanding equity securities of the Company as of immediately prior (on a fully diluted basis).



*Annual Interest Rate subject to adjustment of 10% bonus for StartEngine shareholders. See 10% Bonus below

COVID Relief

This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary COVID-19 regulatory relief set out in Regulation Crowdfunding §227.201(z).

Expedited closing sooner than 21 days.

Further, in reliance on Regulation Crowdfunding §227.303(g)(2) A funding portal that is an intermediary in a transaction involving the offer or sale of securities initiated between May 4, 2020, and August 31, 2020, in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) by an issuer that is conducting an offering on an expedited basis due to circumstances relating to COVID-19 shall not be required to comply with the requirement in paragraph (e)(3)(i) of this section that a funding portal not direct a transmission of funds earlier than 21 days after the date on which the intermediary makes publicly available on its platform the information required to be provided by the issuer under §§227.201 and 227.203(a).

Investment Bonuses*

Invest in Week 1 - Get a 20% bonus on the Convertible Note interest rate

Invest in Week 2 - Get a 15% bonus on the Convertible Note interest rate

Invest in Week 3 - Get a 10% bonus on the Convertible Note interest rate

Invest in Week 4 - Get a 5% bonus on the Convertible Note interest rate

* $500 minimum investment required to receive perks

The 10% Bonus for StartEngine Shareholders

Hundy, Inc. will offer 10% additional bonus interest for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

Eligible StartEngine shareholders will receive a 10% increase in the annual interest rate on Convertible Promissory Notes in this Offering. This means your annual interest rate will be 6.6% instead of 6%.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

*All perks occur when the offering is completed.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative. Vendor payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$61,422.00 USD
$18,597.00 USD
Cash And Cash Equivalents
$5,525.00 USD
$2,186.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$98,869.00 USD
$61,213.00 USD
Long Term Debt
$0.00 USD
$0.00 USD
Revenues And Sales
$26,815.00 USD
$2,211.00 USD
Costs Of Goods Sold
$0.00 USD
$0.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$140,760.00 USD
-$134,647.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Notice of Material Change in Offering

about 1 month ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Hundy, Inc. offering. Here's an excerpt describing the specifics of the change:


Hundy, Inc. is extending the length of their campaign by 60 days.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

Notice of Funds Disbursement

about 1 month ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Hundy, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Hundy, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Five new states added and MoM growth now at 16%

about 2 months ago

Hi All,

Our month-over-month origination growth was 16% for September (up from 12% in August).

And earlier this week, we added 5 more states (IA, ID, LA, MS & NE) increasing our US geo coverage to 20% (up from 16%).

Please keep those investments coming to help further accelerate our growth!


-Pete Budlong - CEO, Hundy

New states contribute to MoM growth exceeding 12%!

3 months ago

Hi All,

With the addition of new states last month (UT, AZ, and NV) our month-over-month transaction origination growth exceeded 12% while our US geo coverage grew from 12% - 16%. We will be adding a few more states by the end of this month so we expect this growth to continue.

One tradeoff from our focus on state expansion has been a delay in the rollout of the lender release. We'll have more to announce on that in the coming weeks.

We appreciate your support!

-Pete Budlong - CEO, Hundy

Notice of Funds Disbursement

3 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Hundy, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Hundy, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Notice of Material Change in Offering

3 months ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Hundy, Inc. offering. Here's an excerpt describing the specifics of the change:


Extended length of campaign.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

We just hit $100,000 invested and added two more states!

3 months ago

Hi All,

As of yesterday, we now have over $100,000 invested, 250 investors, and 1k followers. Thanks to everyone for helping us reach these milestones.

Continuing our geographic expansion, yesterday we turned on both Arizona and Nevada in the Hundy app. This means we are now servicing CA, UT, AZ, and NV.

We'd love your help to fuel our expansion and hope to see you on team Hundy!

-Pete Budlong - CEO, Hundy

Notice of Funds Disbursement

3 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Hundy, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Hundy, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

The Hundy app breaks into the top 200 finance apps in the App Store at #137!

3 months ago


We're on our way to our best month yet topping over 600 installs per day.

Utah is now live in the Hundy App!

4 months ago

I'm happy to announce that we just turned on the Beehive state in the Hundy app. Utah is our second state after California with many more coming over the next few months.

We also just crossed the $75k raised mark. A big thanks to all of our 197 investors.. and we're excited to welcome our newest investors to the Hundy team! 

Last week, we completed our second disbursement and investor welcome emails have gone out to all those who received closing documents. As a reminder, all investors are invited to participate in the Hundy community by sponsoring borrowers in our lender beta and earn cash back in the process.

Work on the follow up to the lender beta is now underway and we'll be rolling out the release in 2 stages: i. borrower/lender interaction (by Labor day), and ii. cash back redemption (by end September).

For the 926+ followers of our campaign, there's 30 days left and we'd love you to come off the sidelines. With your help, we'll be able to cross $100k raised giving a great push to our geographic expansion.

-Pete Budlong - CEO, Hundy

Notice of Funds Disbursement

4 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Hundy, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Hundy, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

We just crossed $50,000 invested!

5 months ago

A quick update for everybody: yesterday we crossed the $50,000 invested mark. 

A big thank you to all of our investors in this campaign for getting us here and a warm welcome to all new investors since our campaign update after the first week. We're excited to have all of you as part of the Hundy team!

And for those investors who have now received closing documents due to our recent funds disbursement, next week you'll be receiving your investor welcome email. All confirmed investors are invited to participate in the Hundy community by sponsoring borrowers in our lender beta, and your welcome email will contain a special invitation code allowing you to do that.

For the 815+ followers of our campaign who are monitoring our progress, please consider investing to help fuel our expansion while having a little fun participating in our two-sided community. 

Please stay tuned for our next update, which will contain details of the full lender release.

-Pete Budlong - CEO, Hundy

Notice of Funds Disbursement

5 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Hundy, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Hundy, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

We hit over $21k in the first 7 days!

6 months ago

A quick update for everybody: We hit over $21,000 invested in our first week. We want to thank all of our 56 new investors for pitching in and kicking off our early momentum. 

For the 100+ new followers of our campaign who are monitoring our progress, please consider adding to this momentum with an investment today. With more than 80 days left, it's a marathon, not a race, but we'd love your early support :)

Please stay tuned for more updates as we hit our key milestones.

-Pete Budlong - CEO, Hundy

Show More Updates End of Updates

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