Fund Information / Factsheet • Dec 30, 2024
Fund Information / Factsheet
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| • Introduction |
1 |
|---|---|
| • Executive Summary |
2 |
| • About WorqCompany |
3 |
| • Founders |
4 |
| • WorqCompany's Social Impact Approach |
5 |
| • Social Sukuk Issuance Summary |
6 |
| • Allocation of Sukuk Proceeds by Categories |
7 |
| • Contribution of Sukuk Proceeds to Sustainable Development Goals |
8 |
| • Meeting UNDP SDGs |
9-15 |
| • Summary of The Fund Allocation and Impact Report of Social Sukuk |
16 |
| • Disclaimer |
16 |
| • References |
17 |
CEO - Chief Executive Ocer E-commerce - Electronic Commerce GIFIIP - The Global Islamic Finance and Impact Investing Platform HR - Human Resources PE - Private Equity RE - Real Estate SDG - Sustainable Development Goals SME - Small and Medium-sized Enterprises UN - United Nations UNDP - United Nations Development Program USD - United States Dollar
VC - Venture Capital
Fund Allocation and Impact Report of Social Sukuk serves as a vital resource in understanding the implications of the social sukuk issuance by WorqCompany Dış Ticaret A.Ş., facilitated by Emlak Varlık Kiralama A.Ş. as the issuer and Türkiye Emlak Katılım Bankası A.Ş. as the authorized investment institution. The issuance aligns with the Social Bond Principles of the International Capital Market Association (ICMA) (1) and the Sustainable Finance Framework of the Islamic Development Bank (IsDB). The report is developed in collaboration with the United Nations Development Programme Istanbul Private Sector and Development Center (UNDP ICPSD) and the Global Islamic Finance and Impact Investing Platform (GIFIIP).
WorqCompany's 2024 Fund Allocation and Impact Report of Social Sukuk summarizes the company's financial and social contributions toward UN Sustainable Development Goals (2). The report highlights the issuance of Türkiye's first private sector Social Sukuk, which generated significant funds to support SMEs, women, and young entrepreneurs.
WorqCompany supports e-commerce entrepreneurs through a revenue-sharing model that enables entrepreneurs to scale their businesses sustainably while retaining ownership. With this inclusive approach, WorqCompany reaches a diverse range of entrepreneurs, supporting resilience and economic empowerment across regions. The report also emphasizes WorqCompany's technological support, including AiDA, an AI-powered tool that provides data-driven insights to enhance decision making for clients. These tools improve business eciency, contributing to digital transformation within the e-commerce sector. The Social Sukuk issuance has allowed WorqCompany to support inclusive growth across various regions in Türkiye, making significant strides toward sustainable development.
In conclusion, the 2024 Fund Allocation and Impact Report of Social Sukuk clearly demonstrates WorqCompany's commitment to contributing to Türkiye's e-commerce ecosystem, social inclusion, and UN Sustainable Development goals through its pioneering Social Sukuk issuance. This Sukuk has been instrumental in enabling WorqCompany to mobilize substantial resources for underserved entrepreneurs, driving inclusive economic growth and setting a benchmark for impact-driven investment in Türkiye.
WorqCompany is a pioneering e-commerce enabler firm dedicated to empowering e-commerce merchants to reach their full potential in the digital marketplace. WorqCompany plays a leading role in increasing the share of e-commerce in overall trade and growing the Turkish e-commerce sector worldwide. Through its Revenue Sharing E-Commerce partnership model, WorqCompany utilizes artificial intelligence to analyze sales performance, marketing, product, and market related operational and financial data. This enables businesses to make the right amount of stock purchases needed for sustainable growth. Additionally, WorqCompany provides data analytics and insight services to help businesses optimize their performance.
The company purchases products wholesale and upfront from suppliers on behalf of firms selling on e-commerce marketplaces and/or their websites, then sells these products to the e-commerce sellers, taking a share of the revenue from product sales at pre-agreed purchase price and terms.
WorqCompany developed this "Revenue Sharing E-Commerce" model in 2022, a first in Türkiye. By sharing revenue and profit with merchants, WorqCompany aligns its success with the success of its clients, fostering a collaborative and mutually beneficial relationship. WorqCompany has taken on a pioneering role in its segment in Türkiye and operates with the vision of becoming a significant player in the global e-commerce market.
Additionally, WorqCompany's ability to understand the unique challenges and opportunities of online sellers sets it apart, allowing the company to oer personalized solutions that traditional financial institutions may overlook. Thanks to its inclusionary business model, WorqCompany has managed to attract a significant number of SMEs. With a broad and strong investor network, continuously growing business volume, and its commitment to supporting merchants in maximizing their online sales and expanding into new markets, WorqCompany is a key business partner for e-commerce sellers looking to scale and thrive in the dynamic digital economy.
WorqCompany's growth is intertwined with impact investment principles and the UN Sustainable Development Goals. Within the scope of impact investment, it also works for social welfare through Sustainable Development Goals (especially gender equality, economic growth, innovation, and the financial development of underprivileged communities and society as a whole). WorqCompany also employs Sukuk, an Islamic financial instrument, to support socially beneficial projects, ensuring compliance with Islamic principles and promoting sustainable development.
Senior executive and seasoned leader with 15 years of Customer Experience and Software experience in Silicon Valley, California. Dynamic multiplier and team builder with excellent startup track.
Managing Partner at idacapital with 17 years of RE/PE/VC experience. Co-founder of WorqCompany with 30 years of entrepreneurial experience.
Managing Partner at idacapital with 14 years of RE/PE/VC experience. Co-founder of WorqCompany with 25 years of entrepreneurial experience.
WorqCompany is committed to fostering sustainable business growth in Türkiye while prioritizing public welfare. Our approach aligns with impact investment principles and the United Nations' Sustainable Development Goals (SDGs). We believe that economic prosperity and social progress are interconnected, and our initiatives are designed to contribute to both.
Key Focus Areas:
We actively support women entrepreneurs through initiatives like the "E-Commerce Women's Club." Our eorts have resulted in a significant increase in the number of women-owned businesses in our client portfolio, surpassing the national average.
WorqCompany contributes to the UN Sustainable Development Goal of Decent Work and Economic Growth by helping SMEs grow their businesses. Our revenue-sharing e-commerce model helps businesses expand sustainably, benefiting individuals who might otherwise be excluded by traditional financial structures.
WorqCompany's ecosystem impact extends to advanced technological tools like AiDA, an AI-powered assistant that provides valuable insights to marketplace sellers. This tool enables data-driven decision-making, eective marketing strategies, and increased sales and profitability for our clients.
WorqCompany has significantly broadened the geographic reach and operational scope of its SME clients across diverse regions in Türkiye. By supporting businesses in both major metropolitan areas and smaller regions, we are contributing to reduced inequalities and promoting inclusive economic development.
WorqCompany is a catalyst for change in the Turkish e-commerce landscape, driving economic growth and social progress through our innovative financial solutions and commitment to sustainability.
A detailed breakdown of the specific numerical impact of the social sukuk issuance on the UN Sustainable Development Goals will be examined in the later sections of the report.
| Type of Security | Social Sukuk | |||
|---|---|---|---|---|
| Obligor | WorqCompany Dış Ticaret A.Ş. | |||
| Issuer | Emlak Varlık Kiralama A.Ş. (It is a 100% subsidiary of Türkiye Emlak Katılım Bankası) |
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| Lead Manager & Bookrunner | Türkiye Emlak Katılım Bankası A.Ş. | |||
| External Evaluation Service Provider | CGE Sürdürülebilirlik Değerlendirme ve Yazılım Hizmetleri A.Ş. |
|||
| Technical Support Providers | United Nations Development Programme Istanbul Private Sector and Development Centre (UNDP ICPSD) and Global Islamic Finance and Impact Investing Platform (GIFIIP), Türkiye Emlak Katılım Bankası A.Ş. |
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| ISIN | TRDEMVK32527 | TRDEMVK22536 | ||
| Issuance Date | 15/03/2024 | 07/02/2024 | ||
| Maturity Date | 12/02/2025 28/03/2025 |
|||
| Issuance Amount | ₺50.000.000 ₺50.000.000 |
WorqCompany always aims to increase its contributions to society by servicing underserved parts of the society and promoting their economic inclusion, supporting gender equality and boosting economic growth.
Due to its unique business model, WorqCompany utilizes its available capital to facilitate a Revenue-Sharing model with e-commerce merchants, subsequently collecting the generated revenue over various timeframes and using these funds to support further growth opportunities for merchants. Through this model, WQ has achieved a total sales volume of ₺578.800.528 using funding of ₺100.000.000 raised from its Social Sukuk issuance between 07.02.2024 and 05.10.2024 (3).
| Category | Number of Customers |
Customer % |
Number of Transaction |
Sales Amount |
Sales % |
Estimated Total Trade Volume |
|---|---|---|---|---|---|---|
| SME | 231 | 100% | 548 | ₺578.800.528 | 100% | ₺2.025.801.848 |
| Women Entrepreneurs |
57 | 25% | 125 | ₺123.807.843 | 21% | ₺433.327.451 |
| Young Entrepreneurs |
44 | 19% | 101 | ₺61.117.934 | 11% | ₺213.912.769 |
Young Entrepreneurs Due to the nature of the business model, all merchants served are SMEs, meaning 100% of the funding was allocated to support SMEs. Of the total sales amount, ₺123,807,843 was directed to women entrepreneurs, representing 25% of the unique customer base and 21% of the total sales volume. Similarly, young entrepreneurs accounted for 11% of the sales volume, with ₺61.117.934 in sales, comprising 19% of the total customer base (3). It is important to note that these categories are not mutually exclusive, as some women entrepreneurs also belong to the young entrepreneur category, reflecting WorqCompany's inclusive support across multiple demographics.
The amount labeled as 'Estimated Total Trade Volume' in the table reflects an estimation that considers the broader impact of WorqCompany's Revenue-Sharing model on other parties involved in the transactions. WorqCompany purchases goods from suppliers and sells them to merchants, who then generate trade volume by selling these goods on e-commerce platforms through both B2C and B2B channels.
Driven by its customer base, WorqCompany's growth is directly intertwined with impact investment principles and the UN Sustainable Development Goals, specifically the goals 5, 8, 9, and 10:
WorqCompany places great importance on supporting women entrepreneurs and is developing projects for women through the 'E-Commerce Women's Club.' Currently, 35% of WorqCompany's client portfolio consists of women entrepreneurs, while this number is around 17.4% in Türkiye (4).
By supporting women entrepreneurs, WorqCompany significantly contributes to gender equality, income justice, and economic development. In the five-year period (2023-2027), WorqCompany aims to provide a minimum economic benefit/trade volume of 260 million USD, with 129 million USD in sales to approximately 750 women entrepreneurs. Additionally, WorqCompany tries to increase its proportion of women employment rate in order to bring it to a more equal level. Currently, women employment rate compared to men is 71% while in Türkiye, this number is 34.5% (4).
WorqCompany contributes to the UN Sustainable Development Goals of Decent Work and Economic Growth by helping small and medium-sized enterprises (SMEs) to grow their businesses. The revenue sharing e-commerce model helps businesses grow and expand sustainably and contributes to economic development by assisting individuals who otherwise would be left out by traditional financial structures. An important indicator of the contributions of WorqCompany is its customers' growth rates. WorqCompany's customers grew by 301% while e-commerce in Türkiye grew by 115% (5).
WorqCompany aims to work with an average of 2,500 active customers over five years from its establishment, achieving a total sale size of 430 million USD through 12 e-commerce operations per customer. This model aims to increase economic income by 869 million USD, directly benefiting 25,000 entrepreneurs and employees and indirectly impacting approximately 100,000 people in their immediate environment.
Industry, Innovation and Infrastructure/Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
WorqCompany's ecosystem impact extends to include advanced technological tools that significantly enhance the business ecosystem for our clients. One such tool is AiDA, an AIpowered assistant designed to provide marketplace sellers with invaluable insights into their store performance. By analyzing sales data, customer behavior, and product performance, AiDA helps identify areas for improvement, optimization, and growth. This tool is crucial for our clients, enabling them to make data-driven decisions, develop eective marketing strategies, and ultimately increase their sales and profitability.
Through AiDA, WQ not only supports the needs of small and medium-sized enterprises but also fosters their long-term success and resilience in a competitive market. The integration of AiDA into our service oering underscores WQ's commitment to leveraging technology to create a robust and supportive business ecosystem.
By analyzing the general performance of stores regarding sales and customer satisfaction and giving suggestions that can take concrete actions, AiDA aims to contribute to the eective growth of the Turkish e-commerce ecosystem with store analysis and suggested actions.
WorqCompany's (WQ) revenue sharing e-commerce has significantly broadened the geographic reach and operational scope of its small and medium-sized enterprises clients across diverse regions.
With 333 unique sellers across 31 dierent cities and regions, including international representation from the UK, WQ has facilitated a total of 936 transactions, amounting to over \$18 million (3).
WorqCompany Seller City
Our revenue sharing e-commerce model impacts SME owners' lives across 30 Turkish cities and in the UK.
WorqCompany aims to support e-commerce sellers in priority development regions in Türkiye. By supporting businesses in these regions, WorqCompany helps to reduce economic inequalities, promote income equality, and foster sustainable growth. While the banking sector provided approximately 776,000 Turkish Lira for SMEs in April 2024, WorqCompany made an e-commerce partnership of 1,955,000 Turkish Lira per merchant.
WorqCompany provides support to young entrepreneurs who are tech-savvy, eager to grow their e-commerce businesses, and have limited access to traditional sources.
By supporting young entrepreneurs -with 18% of its clients being under the age of 30, and we aim to increase this to 25% (3)- and encouraging the development of new business ideas, WorqCompany aims to contribute to reshaping the business world.
WorqCompany's innovative business model and commitment to supporting SMEs and underrepresented groups position it as a leader in the sector. The company's eorts not only drive economic growth but also contribute to broader social and environmental goals, making a significant impact on society as a whole.
Fund Allocation and Impact Report of Social Sukuk highlights WorqCompany's commitment to promoting gender equality and economic growth through its social sukuk issuance. By supporting women entrepreneurs and leveraging innovative solutions like the AI assistant AiDA, the company enhances business performance and fosters inclusivity. Its initiatives extend across various regions, empowering diverse communities and young entrepreneurs, and aligning with the UN's Sustainable Development Goals. Overall, WorqCompany plays a pivotal role in driving sustainable development and social progress in Türkiye.
This Impact Report has been prepared for the sole purpose of providing information regarding the social sukuk whose originator is WorqCompany ('WQ') and does not contain any investment advice, oer or commitment whatsoever.
The information in this document is provided in line with current market conditions and no guarantee is given by WQ as to its accuracy, completeness or timeliness.
Investors accept all risks and consequences of decisions they make based on the information in this document and WQ cannot be held liable in any way for any losses arising from such decisions.
(1): ICMA Impact Report. (2024).
https://www.icmagroup.org/assets/documents/Sustainable-finance/2024 updates/Handbook-Harmonised-Framework-for-Impact-Reporting-June-2024. pdf https://www.icmagroup.org/assets/documents/Sustainable-finance/2024updates/Handbook-Harmonised-Framework-for-Impact-Reporting-June-2024. pdf
(2): UN (United Nations) Department of Economic and Social Aairs Sustainable Development https://sdgs.un.org/goals t
(3):WorqCompany: WorqCompany's data
(4): TUIK (Turkish Statistical Institute) https://www.tuik.gov.tr/ https://www.tuik.gov.tr/
(5): BDDK (Banking Regulation and Supervision Agency) Monthly Banking Sector Data https://www.bddk.org.tr/BultenAylik/en https://www.bddk.org.tr/BultenAylik/en
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