Pepins : Investor Update Q3 2022

We are focused on activities that will bring results in 2023 and developing the business with our existing customers. This work is going really well and we have many exciting dialogues going on with potential customers. It is especially great to have customers who keep buying more and more services from us. However, we will have to slow down the pace of development and prioritize our product portfolio in our pursuit of profitability.

Some of the initiatives and products that we launched in the spring, when expansion plans were more aggressive and growth the most important goal, will not be developed further right now. We have to pause some product development and initiatives to ensure that we stay afloat. However, we have managed to reduce costs by 40% since May, which is an achievement.

We have not noticed that the rate of digitization of our customers has slowed down, due to the market situation, on the contrary quite the opposite. I think that we are clearly an industry that is prioritized despite the declining economy. Digitizing, automating and simplifying, now that a long winter is coming, is more important than ever.

As you know, we anticipate launching a Series A financing in 2023. To finance the company in the interim, we have decided to raise a bridge convertible financing. Many of you have participated in the first and second closing of that financing for a sum of 22 million SEK. We are now in the process of finalizing the third round, which would bring us an additional 8 million, to a total of 30 million SEK.

Two of our existing shareholders and long time supporters and one new investor have committed a significant portion in this third close. All have further indicated that they may possibly contribute the same amount and under the same terms in 2023. A great signal that shows their continued support and belief in Payer's progress.

Please find below our recap for October.

Best regards

Payer Team

HIGHLIGHTS

• We announced our partnership with American Express whereby we facilitate their payments across the Nordics in Denmark, Finland, Norway, and Sweden. By using Payer, they can offer a more complete service to their corporate customers.Read more here.
• We gathered almost 5 million SEK in new commitments for our convertible loan since our last investor update.
• GMV was an all time high for September.
• Our sales pipeline continues to be filled with exciting meetings and good customer dialogues.

CHALLENGES

• We have more to do now with both less resources and capital. This means it takes us a longer time to achieve certain milestones and has made us reprioritize product roadmap launches.

CONTRIBUTION WELCOME

• We are always looking for new customer leadsand are grateful for introductions to companies within the Banking & Financing sector and large European industry enterprises with global sales. If you have a company in mind who you can introduce us to, please do.

KEY METRICS





Transaction volume growth 2020 - September 2022



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