Hundy

P2P Microloans for America's New Middle Class

Hundy

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 a network of peers via a friendly, mobile-only app. What makes Hundy unique is the loyal community it's built around the sharing and celebration of good character by both borrowers and lenders.

$107,000

raised
203
Investors
47
Days Left
09/04/20
Maturity Date
$4M
Valuation Cap
10.0%
Discount Rate
12.0%
Annual Interest Rate
Convertible Note
Offering Type
$100.00
Min. Investment

$107,000

raised
203
Investors
47
Days Left
09/04/20
Maturity Date
$4M
Valuation Cap
10.0%
Discount Rate
12.0%
Annual Interest Rate
Convertible Note
Offering Type
$100.00
Min. Investment

Reasons to Invest

3,500 loans originated on loan volume of $350,000
97% active borrower retention rate
125,000 registered users on waitlist

Empowering the creditworthy to benefit  from their good character

Instability has become the new normal

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, 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, or buy food. 


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.

We reward doing the right thing

Hundy is creating a community, for peer-to-peer loans, that rewards good behavior and celebrates those who do the right thing. This mobile-focused community for consumer 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 in $50 increments 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, 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 towards discounts on loans or add to lender ROI when this feature is launched. 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.

 

With Hundy, there’s no waiting around for the money you need now, but most importantly there’s protection from predatory loans. We are a community that provides support and rewards for participating – we are for everyone with good character.

Serving America's new middle class

Over three-quarters of U.S. workers live paycheck-to-paycheck (CareerBuilder survey, January 2019), so there are innumerable reasons why a person could be looking for a quick microloan. According to self-reported survey data collected with each loan, the number one use of Hundy is to buy groceries followed closely by utilities, car payment and help with rent.


To date, we have been lending exclusively in California and are planning to open up in Florida in Q1, 2020 and some of the other most populous US states following that. In just over a year’s time in California, we’ve originated 3,500 loans and have over 125,000 users on waitlist nationwide. We have over 600 active borrowers (those who got at least one loan in the past year with the average being 4 per year) with a retention rate of 97% (excluding charge-offs) and nearly 1/3 of these borrowers are participating 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.

Building 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, we should see the APRs drop even further as our borrowers begin to use their accrued points to get discounts and as our underwriting improves due to the unique data produced by our growing community. Finally, both top rated borrowers and lenders will have the opportunity to own a piece of the company incentivizing viral promotion as the value of the company goes up.

We will continue with forward momentum

We've already had a strong response to our app in California and expect a similar result in Florida. We’ve raised just over $500k from friends & family and angels over the past 2+ years. We have a community of approved borrowers in the thousands, and after this raise at StartEngine, we hope to be able to increase this number considerably.

 

As we progress, our goals revolve around completing our platform build out. This includes launching the for-profit lending side of our community within the Hundy app shortly after we meet the minimum $10k campaign goal, available only to participants in this offering. Additionally, in beta, we have a friend-to-friend lending service that we hope to release to all users very soon. Last, once the network effect from our growing community begins to kick in, we’ll launch an ownership incentive program benefiting the borrowers and lenders who contributed most to getting our flywheel started. We anticipate that all of these things, in tandem with the StartEngine raise, will get us on the path to high growth.

The Numbers (as of June 30, 2019)

  • App installs: 150,587 

  • Waitlisted users: 125,663

  • Loans originated (California): 3,415

  • Loan volume:  $335,200

  • June gross revenue = $3,309 (on cost-of-services of $4,050)

  • Monthly revenue growth rate (12 mo) = 10%

  • Loan default rate = 6.6%

  • Active borrower retention rate (12 mo) = 97%

  • Community participation rate = 33%

  • Money spent on advertising = ZERO

Our growth thus far has been completely organic

So far, Hundy’s traction has been entirely organic and we haven't spent any money on advertising. Almost all of our downloads come from the app stores, of which 90% are iOS and 10% Android. For example, when users search “need money” in the App Store, the Hundy app is the top search result. Our waitlist to receive a loan outside California is in excess of 125,000. This is all through word of mouth and our ASO (App Store Optimization) efforts. Because of this, we have not yet needed to invest extra funds in marketing to find our borrowers.


Our target borrower makes between $25K-$75K a year, lives paycheck to paycheck and has subprime to near-prime credit between 580 to 680. Our target lender makes over $100K a year, has an investment portfolio on par with her annual salary and has a credit score above 700.

 

As we extend our service into the Florida market, there is already pent up demand and a waitlist comparable in size to our California audience. Moving forward, as we expand nationally, we intend to use paid advertising to strategically open up our target markets. In addition, we plan to focus a large share of the ad budget on the investor/lender community since they are not already looking for us in the app stores.

Hundy has created a unique community

While there are other consumer lending apps out there on the market, Hundy is entirely unique in the for-profit, small dollar arena 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 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 borrower loans 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 making a very competitive return on investment. 

We have passion and experience

At the helm of Hundy is Pete Budlong, a veteran of two-sided marketplaces and mobile marketing companies including Classifieds2000, Soundflavor and Yelp. Also, at the forefront of Hundy is Ram Hedge who has led 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, which has been live for over a year. 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 about Hundy

Meet our top borrowers

Here are some of our top ‘Ninja’ borrowers, which means they are just one level below Guru status, the highest status level in the Hundy point system. Any of those ranked in the top 10 are just a few loans away from becoming Gurus, which will unlock their ability to easily become lenders and investors on the platform. This will be quite a turnaround for these folks who just a year 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 a network of peers, 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 lenders to own a piece of the company giving everyone an opportunity to participate in the upside they help to create.


The development of our borrower community based on the sharing and celebration of good character is well underway. Shortly after this offering goes live, we’ll add de facto lenders to the community for the first time while creating strong ownership incentives for all parties. Please join us in making this a reality by becoming part of the Hundy family with your debt or equity investment today!

Offering Summary


Company

:

Hundy, Inc.

Corporate Address

:

111 NE 1st St, Floor 7, Miami, FL 33132

Offering Minimum

:

$10,000.00

Offering Maximum

:

$107,000.00

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

:

September 04, 2020

Valuation Cap

:

$4,000,000.00

Discount Rate

:

10.0%

Annual Interest Rate

:

12.0%
















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 $4,000,000.00  Valuation Cap or if less, then you will receive a 10.0% discount on the price the new investors are paying.  You also receive 12.0% 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 for bonuses. See Bonus information below.

Investment Bonuses*

Invest in Week 1 & 2: Get a 20% bonus on the Convertible Note interest rate

Invest in Week 3: Get a 15% bonus on the Convertible Note interest rate

Invest in Week 4: Get a 10% bonus on the Convertible Note interest rate

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

*Minimum $300 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 StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments in StartEngine's own offerings.

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 13.2% instead of 12%.

This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement, unless their eligibility period has been extended through additional subsequent investments in StartEngine's own offerings.

Irregular Use of Proceeds

The Company will not incur any irregular use of proceeds.

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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$33,655.00 USD
$2,041.00 USD
Cash And Cash Equivalents
$18,655.00 USD
$2,041.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$8,948.00 USD
$19,238.00 USD
Long Term Debt
$399,105.00 USD
$213,700.00 USD
Revenues And Sales
$2,325.00 USD
$0.00 USD
Costs Of Goods Sold
$1,000.00 USD
$0.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$143,501.00 USD
-$230,897.00 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 Funds Disbursement

17 days ago

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

Hello!

As you might know, Hundy 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 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 reached the $107,000 campaign maximum!

24 days ago

Well that was fast :)  

We hit the $107k campaign maximum nearly 45 days earlier than planned!

We actually hit the max on Monday but then had a few cancellations and we still have many payments that need to clear. So if you missed out, you may still have a chance to invest. People who invest after the $107k maximum will be placed on a waitlist. If any investments bounce back due to failed credit card or ACH transactions that that remain unfixed, people on the waitlist will take their spot. 

Many thanks to all those who have invested so far and become part of the Hundy community. We appreciate it!

We hit $50,000 in just over 7 days!

about 1 month ago

A quick update for everybody: We hit $50,000 invested in our first week. We want to thank all of our initial investors for pitching in and kicking off our early momentum. At this pace, we should easily beat our goal to get to $107k invested in 60 days.

For the 85+ followers of our campaign who are monitoring our progress, please consider adding to this momentum with an investment today. With your help, the campaign will be over before you know it :)

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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