Vef AB (publ)
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Welcome to the VEF First Quarter '22 Earnings Call. [Operator Instructions] Today, I'm pleased to present David Nangle, the CEO. Please begin your meeting.
Yes. Thank you very much, operator. Good morning, good afternoon, everybody, and welcome to our Q1 '22 results conference call. I'm Dave Nangle, the CEO of VEF. And as usual, what I'll do is, I'll take you through a few slides from our deck, which is online now, are available through the link and it's probably some 10, 15 minutes on some of the more salient points to update you on all that happened to us in Q1, and how we see things at this point in the cycle into the future.
And then I'll open up the end as usual and get some Q&A from the analyst and investor community. But kicking off on Slide 2. Events over the quarter, the real mix, obviously some top down headwinds and then some bottom tailwinds. The war in Ukraine, we can't escape that, it's front and center for the world, but also for us as a company. What I can say there, we've had PRL in this is that we have -- it has an impact on VEF, of course, it would have, so we have exposure to the region, but our exposure is small. And as of this quarter, that exposure is 0.
So we have one equity holding in Russia, REVO, which was less than 2% of our NAV. And we had some Tinkoff bonds in our liquidity portfolio. So both of which are the going concerns. Tinkoff bonds are paying coupons, but we have decidedly written both down to 0. And as of Q1, that's 2.3% of our NAV at 0 as a result of the Russia now living in a parallel universe and not really having a price point for any asset in that market irrespective of how good it is.
Now we wanted our asset exposed to the region, which is TransferGo, which does cross-border remittances. I'll get into this, a 3.9% for NAV that's been the implications of what's been going on and what's been net positive for money flow into and out of that region for their business more importantly. From an NAV point of view, we end the quarter minus 3.2% quarter-on-quarter at $738 million, broadly flat on a SEK per share because of the SEK movement on a dollar basis down, and it's mainly because of our movements that we've done in our holdings in Russia, which I've just mentioned.
With a portfolio context, we had 2 new holdings in Q1. These are ones that I flagged at the end of last year, both in Brazil, Gringo and Solfacil. I'll deal with them in a bit more detail later. But we led the round in Gringo at a $12 million cheque, a $34 million round in Brazil's leading drivers one-stop shop app for drivers in that market. And also, we took part in the funding round for a very exciting solar panel marketplace and lender called Solfacil in Brazil, we wrote at a $20 million cheque for that.
It was also a quarter where we had one of our investment companies -- portfolio companies raising capital and successfully sold. I know there's some headwinds out there in the market, a lot of talk about tough markets, but we successfully raised $17 million in their Series A. And as a reminder, this is a company that we backed since inception, where we put nearly $1 million in out of $6 million post-money valuation only 15% of the company from the off. So it's one that's been a great success story in one of those early stage markets where we're starting to plant seeds. And we also raised some capital in Q1 or just after Q1, this is our bond, our first bond, social bonds, sustainability bond, SEK500 million, approximately $53 million.
And I've talked about the numbers, which is mainly down 3.2% on a dollar basis and flattish on a SEK basis, mainly because of the moves. And you look at our NAV over time, this is on Slide 4. It's generally been a gradual open to the right story, but obviously, windows like COVID, the initial part of COVID in Q1 '20, and then also Q1 '21, where we start to see some headwinds feeding through. And let's see what happens next when we can get into that. And also, we raised money in the form of direct placements in 2 times over the last 18 months, and that's in the green boxes there, but the gradual trend continues. And we end the quarter at $738 million of NAV.
And from a -- it's worth making some comments, because I'll deal with this later more in the Q&A with analysts. I'm sure, but from a valuation and NAV or mark at the end of this quarter, so what to say. One is just pure and simple, we're very aware of the market that we operate in, how could we not be. We're a listed entity with a share price, we have analysts covering our stock and we spend our time talking to public market investors. So whether it's today, tomorrow, last year, we're always aware of market trends and there are implications for us as a company.
In tandem with that, we're probably seeing an overdue catch up in private market valuations versus the public peers. There had been a dislocation, we all talked about it, we all hummed and hawed about it. We wondered how long it would last for, what was driving it, and now starting to close natural tendencies of markets over time. And 3 points to make on markets that have been lecture. One is from a valuation point of view, what goes into the valuation of any of our assets, whether we're putting new capital into them or valuing them on a quarterly basis. It's a function of 3 things, mainly, which is company forecasts, currency and then valuation multiples.
So the multiples where we're seeing share prices falling in names across the board and multiples falling off as a result is 1 of 3 key factors. The other factors are just as important at any valuation points that you have for any company in your portfolio. We do like to decide between short-term valuation multiples and true cycle exit multiples. Last year, short-term multiples were too high. There's an argument where short-term multiples right now are too low. There's plenty of debate out there. We tend to invest that through cycle exit multiples, but both have their place and we need to respect both at any point in the cycle. So we'll just be very aware of that.
And in many cases, we think 3 forecasts have to catch up with the share price sell-off. So a lot of sell-off has been top down, and we agree with that. But also a lot of the forecast for a lot of these companies has to come down, and that will provide some support to multiples as we look forward. So it's just a bit of a caveat. And what I'd also say is just from an investment company, we've been in this for 7 years. We are very comfortable marking our holdings and brought portfolio up and down at any point in the cycle, it's what we do. We did a broad-based markdown at Q1 '20 with the start of COVID, what I'd say was different than to now effectively in Q1 '20 when the start of COVID happened, peer multiple share prices sold off went off a cliff, currencies in our world also went south. And the outlook for our companies, I won't say it was uncertain, it was totally unknown.
We fast-tracked today and what we're dealing with, yes, we are dealing with the market sell-off, of course, you always see that. But currency is going to move in different directions. We'll talk about that. And the future of our company, the forecastability of them is obviously not 100% known, but it's a lot more forecastable than it was in 1Q '20. And on an individual company basis, true cycle versus last investment round, we've been very happy to move our companies north or south of that based on a true and proper and fairness of valuation mark. And with mark GuiaBolso and Xerpa down aggressively in the past for obvious reasons. And iyzico and Juspay which were breaking out even though they were in that 12 month period post last investment round.
If you look at [ Q1 '20 ] and what have we got from a NAV point of view, we've got 3 companies, where we moved our NAV position specifically on them. REVO, we've talked about, it was mark-to-model last quarter. This quarter, it's marked-to-model, but to 0. We have Nibo, which was mark-to-model last quarter as well, it's down 17% quarter-on-quarter. And that's mainly a function of multiples of peer SaaS players that have comped against. And FinanZero, which moves to a mark-to-model valuation. And as we move 1 year on from the last investment round, it's grown about 100% since. We've got some currency tailwinds, but obviously, we've got the headwind of multiples of a peer group of Brazilian fintech companies, which works against it in the short-term. So a minor markdown there.
What to say about the rest of the portfolio, we feel comfortable right now, we've gone through each holding with ourselves at our audit committee with our auditors and we are comfortable where we hold those companies. And one wants to get specific clearly and some transparency on that. I guess, one can look at Creditas, which is north of 50% of our NAV. If we look at that at the end of Q1 on our numbers, it's trading about 8.1x next 12 months revenues. Once again, short-term multiples, but that's what the market wants to focus on. The peer group is trading about 6x, just the peer group we set against it. Nubank within that is key peer, trades north of 10x as at the end of Q1, and Creditas is growing faster, than that group as a whole significantly so.
So there is a growth premium therein. There's also a valuation discount to Nubank while there is a valuation premium to the average of the peer group. Another one worth alluding to is probably Juspay, it's not in the presentation deck, but this is mobile payment in India. It's a company that's one of the loftier valuations let's say in our portfolio. We don't nearly generally go above 10x, not because it's fundamentally so, but just it doesn't tend to happen with us. And it's trading just out of 15x forward next 12 month revenues. And you got names like the local payments company in Latin America, trading close to 20x and Abhi close to 30x. So we do think we're in the faster growth and also reasonably priced assets either at peer groups or discounts therein for the assets that we hold. And hence, we're comfortable holding at the last funding round valuation on average.
If I look at Russia, Ukraine specifically, I think we've kind of -- we've talked about this a lot. I think we won't be talking about it too much in the future, because we will have no exposure to Russia as of today, effectively with our results coming out. All our Russian assets are 0. There are growing concerns in that parallel universe that is Russia right now. We'll see what happens, there is option value, we do own the shares in them. But we are working with those companies, we sit on their boards, all that good stuff doesn't change, but we have no exposure to Russia as of today.
And TransferGo, as I said, in the remittance businesses, with the Aspera, the moving parts of the Ukraine, the escalation there, migrants moving all over the continent. For someone like TransferGo who deals in migrant remittances, who's building a migrant bank, digital bank for these migrants over time, and this becomes a big opportunity set as well as some short-term benefits on the core money transfer business point of view.
And final point, just from a -- one obviously thinks about defense in a window like this and how are we defensively positioned with some kind of positive tailwinds in there. I guess, defense-wise, you have to look at our geographic exposure, and we are 64% Brazil, we're over 90% Brazil, Mexico and India. This is something that we wouldn't have been historically, but we're kind of very long, healthy or relative emerging markets. Brazil, obviously, benefiting from the commodities trade, both food, oil, et cetera. Mexico, benefiting from this geopolitical position close to the U.S. And U.S. bringing supply chain lines closer to home. And India is in a very strong place geopolitically in general.
We transferred that into how Brazil has been performing as a country year-to-date. It's actually -- equity market has been outperforming globally, been net positive year-to-date. And the currency has been a big tailwind for a lot of our company. So I talked about Creditas, I get a lot of questions about Creditas and its peers falling 20%, 30%, 40% year-to-date. And then we talk about Creditas growing 20% quarter-on-quarter, year-to-date and the currency growing 18% quarter-on-quarter, year-to-date. So many moving parts to the net valuation that you come to.
And then more from a defensive point of view, this is what makes us calm in this window, I've been through many windows like this before, cashed up. We have just raised the bond. We're sitting on $75 million of cash capital. So our balance sheet at VEF has been strengthened, so we can sit back and watch and manage ourselves through this window. And then we look at our top companies, Creditas, JUMU, Konfio, Juspay, TransferGo, even Rupeek. Top 6 companies in our portfolio by size, by NAV, all raised hard in the second half of last year. So that puts us in a very strong position, but they don't need to touch the capital markets this year.
They may, that's possible, that some of them may actually incrementally add more capital, and we'll see where the world goes. But there's no one that needs to go out there and step into it. And what we've seen so far, are smaller companies with Abhi out there raising and raising successfully. So we've got a couple of smaller companies that we will put capital into, but none of our bigger ones need to be out there in what are difficult markets as we can all see.
From a share price discount to NAV, look, the markets are brutally efficient and they do what they do in windows like this. We watch what happens to the share price. Our discounts in NAV gone from a significant premium to a significant discount north of 40%. We just need to fight that with consistency, with delivery, and that will take time, and we're comfortable with that. We can't actually fight it with buying back our shares right now because of our current listing structure on Nasdaq First North coupled with our Swedish Holdco structure, which would allow us to buy back our shares at these levels, and that is something hopefully for the not-too-distant future when we make that move to the main board.
And from a portfolio point of view, we've added 2 new names. How does that kind of shake up the mix. So far all of the top 5 company in the portfolio. So a slight mix of the top end of the portfolio, and Gringo will be a top 7, top 8 company. But you can see that Creditas still dominate the 53% Konfio and Juspay are 71% of our portfolio at the end of the quarter.
A couple of words on Creditas, because it is our biggest holding acquired in the fourth quarter for that company. They did report their Q4 numbers, which obviously seems a long time ago given that we're now in April, and we'll have Q1 numbers in the not-too-distant future. They had a very strong Q4 for what it's worth at the end of the year and 3x growth last year in their originations and their credit portfolio that was [ BRL 750 ] million of loan book outstanding. This is all in BRL on the deck, but they did about BRL 250 million of run rate revenues in Q4. They're probably double that -- double year-on-year revenues this year. Growth in the loan book won't be double, it will be little bit less as they kind of consolidate and just look ahead and grow, but not going to be 3x growth to probably do 50% to 100% growth in the origination book, and that will feed through to 100% plus/minus in the revenue growth this year. So still very strong, not as strong as last year, but then we're in a slightly more conservative environment, I get that, and I support that.
And 2 new holdings is Solfacil. And this is one -- I won't talk too much about it because they're going to announce the round properly. We obviously were part of it at close before quarter end. So we included in our quarterly report and in this presentation. But it's a very interesting asset, it's one we've been tracking for a while with our partners at QED and SoftBank in Latin America. It's in the solar space, excuse me, they lend to individuals who want to buy solar panels and effectively can't afford them on the outright cost. So that individuals can put their payments over time for these panels, it's about a $5,000 panel stretched over 4 to 6 years, effectively, the payments are in line with utility payments.
So there's no incremental net monthly spend for the individual. And at the end of the 4 to 6 years, you own the panel outright and now you've got close to free energy in a country which tells you has a lot of sunlight, an extensive and unreliable infrastructure for electricity. So hence, solar is a big early stage underpenetrated part of that market. And this is the country which grew our company that grew its loan book about 7x last year. And once again, this is secured lending, we always like the secured lending space for purpose security against the loan book, and they raised $100 million in which we took part to $20 million, to be on a small part of that company, but it's one of our most exciting new additions.
On top of that, we also invested in Gringo, which kind of goes back to the embedded finance theme that we've been talking about a lot for refining companies, which are effective, is the fact that'll be a payments company. But what they do is, they acquire individuals via their app, it is the driver's best friend. They've got about 5 million downloads, 1 million active, and you keep your documents in their -- your driver's license, you can register your car, annually buy if you pay your fines. And this is all known by their app as opposed to paper-based systems and going offline and curing and offices to make these payments.
So that they get very high take rates on the payment here, and once again, growing at multiples and year-on-year, last year to this year, undergone viral effectively in Sao Paulo and the idea is to be into the rest of Brazil as they go and then add the product suite from therein. And as we're just a couple of words on Abhi, that's is a smaller holding of ours, but it's an interesting playbook where markets like Pakistan, we are putting down seed investments. This is our second, they're about to do our third in that market as our next investment to be announced hopefully in Q2.
This is one that in less than 12 months, we've gone from a very small company valuation-wise, we've said we put in $1 million into this company, owned 15% in early days, and now they're raising $17 million in total at a valuation of $90 million post money as per the press release last week. So we're in Pakistan with founders of this company recently spent a day with them. Very exciting what they're doing in the financial space, growing the corporate partnerships like a weed. It's a great product market fit and a great team in that market.
Sorry, one second. So just a couple of more slides. Firstly, on ESG. It was a big year-to-date for us on that front as we continue our journey, and really around us issuing our first bond and it was a sustainability bond. It was a natural port of call and choice for us. And as a company as we look to add additional resources to our capital base, it's a 3 year bond, but a $53 million in dollar basis, well supported by the local Nordic market.
So -- and I think the sustainability aspect of it and the uses of that capital for financial inclusion and responsible financing went down very well with the investor base. So we welcome all our new bond investors to the best story. And we'll be talking a lot more about ESG and the uses of that capital, some of it went into Abhi on their recent rounds and some will go into Solfacil in that round as it closes.
And then finally, just before I open up to questions, just kind of a concluding comments. What I'd say is, first and foremost, we had low exposure to the conflict region. That's obviously the first focus, and that's now marked to 0. So I said that a couple of times. So we have no Russian exposure, and given everything else going on, we're unlikely to have any Russian exposure for the foreseeable future. So I put the downside risk on that regional exposure close and over and done.
From a defense point of view, we are well funded as a company and also our top holdings are well funded. I went through the top 5 was actually the top 6, including Rupeek. On top of that, then you have Creditas, which continues to grow at a healthy clip, grew 3x last year to originations. This year, it will be in the region of 50% to 100% origination growth. And on top of that, there is loan book growth. And on top of that, you'll get about 100% revenue growth as the average book will grow year-on-year about 100%. So some very strong trends, continuing at Creditas, a slowdown from last year, but naturally so from a very high base and in some more uncertain waters in that market.
And then obviously, watch Konfio and Juspay. This doesn't change, they are next breakout names doing very well, well-funded in their respective markets and segments of choice. And when it comes down to the headwinds, sitting around with investors today, we're actually -- we're very relaxed and calm in this window. We're not negligent, we get the risks, we see what's happening in markets, but we set our defense out very well. We sit tight, we're very comfortable in some very good quality holdings and assets. Ebbs and flows and valuations of them over time, we get that, it doesn't go up into the right in a kind of straight line. But we see as much opportunity as we do risk. We're managing the risk first and center, and then we'll move on to the opportunity side of the equation for the long-term value add for all involved.
And I will stop there then, operator, and I'll pass it back to you, so you can open the mic to investors for any questions at this stage.
[Operator Instructions] And our first question comes from the line of Herman Wartoft of Pareto Securities.
So a couple of questions from me. I mean, I appreciate the slightly more granular information here on the underlying approach for the asset valuation. So maybe I'll start with 2 follow-ups on that. Starting off, I mean, I understand that this window is different from the COVID window or the COVID outbreak in a lot of different ways. But I would just wonder if you have some kind of threshold in terms of your value change, like what kind of -- like the drawdown of the different assets, where you would maybe reconsider taking these assets off the latest valuation approach. And then also, I mean, you mentioned Creditas is 8x for revenues and Juspay is at 15x. I mean could you also comment maybe Konfio in this regard? So we get a good overview of the top holdings in the portfolio. That's my first question.
Yes, that's for Herman. Look, we look at all our holdings every quarter, we're shadow valuing them. We're looking at multiples, irrespective of what we do on an investment round, we do an investment round put money into a company and we are doing through cycle multiples 5 year out forecasting and look and put $1 to work for a 30% IRR. And obviously, through that cycle, valuation multiples in the market will rise and fall like they went last year to a high ebb and this year to a low ebb. We'd like to increase like we were doing the right thing for our capital and for our investors.
But within that, there's no -- I won't say the specific thresholds that we look at. We just look at everything on a quarterly basis. So we get the next quarter. And for whatever reason, we feel the need that to change any valuation in any of our portfolio companies versus where they are today, we'll do it. Not small changes, but like there's a dramatic change either north or south in the either market multiples, forecasts or currencies that go into the input or maybe combined 2 or combined all 3. We'd have no problem making that move or making that change. And I think we've done that before.
I think this quarter was a quarter where we sat back and we were able to justify it to ourselves, our audit committee and our auditors, that we are comfortable where we were at that point in time. And hence, we stand behind our NAV, and I'm quite comfortable with that. So yes, I wouldn't get too specific on it, but very happy to move any of these names north or south, given the moving parts that we see.
From the Konfio point of view, Herman, if you don't mind, let me come back to you on that. It's -- I gave Creditas, obviously, because it is our biggest holding, and it is our most public holding and one can back out or make their own forecast and valuations based on publicly available information. Then I gave Juspay, it's not public, but I just wanted to give it in the kind of context of its trading of 15x and you've got the iyzico 20x, and you've got igen at 30x, so we're sub kind of key peers. At Konfio. Let me come back to you on that separately. I just don't have it top of mind, my apologies.
Moving on, I have a question about Creditas as well. I mean they released their Q4 numbers and their strong continued credit portfolio growth and also the revenues grew quite nicely. I'm just wondering if you could dive a little bit into the contribution margin here because that's declined quite a bit from Q3 to Q4. And I mean they include a lot of things in this contribution margin such as the funding cost, the servicing costs, the credit provisions, et cetera. So maybe if you could just comment like, if you think that this contribution margin will come back up again? Or what are kind of the moving parts here?
Yes. It's a very fair question on our biggest asset. So what you have is, you have a company which grew like a weed last year, so great growth from the volume side, the origination. You take that into 2022, and I think Sergio is on the record, where we'll probably grow the loan book, not 3x, but probably 50% to 100% is ballpark what we can see or forecast given the run rate originations at this stage in the 3 different buckets. And I will feed through to, I'd say about the top line last year was 3x this year, it might be towards 2x, still quite healthy growth, but not only to over push it in markets which have high inflation, high interest rates, elections coming. So we have volatility, never mind the global headwinds. And Brazil is benefiting from some of these things, obviously, with commodity prices and food prices, which is the backbone of their kind of export base.
From a contribution margin point of view, Creditas has felt some pain. We're seeing that in the numbers now. We'll see it again in Q1. Where does that pain come from? That pain comes from a cost of funding dynamic, most importantly, that's the one that's been rising, it's linked to base rates inflation, and that's been rising quicker than they've been repricing on the asset side. So it's been a kind of a -- it's a natural way for Creditas' book the way it skewed where in a rising rate environment, they get squeezed and then it peaks and in the way down, it opens back up. So I'd like to think we're there or thereabouts and rate peaking. Creditas has been repricing aggressively the asset side.
So you get 1 or 2 quarters of squeezed before, I think Q2 into Q3, you're going to start seeing that contribution margin open back up, a slight pickup in asset quality and provisions as well. And that's less more negligible than the cost of funding aspect here, but we are seeing asset quality across the board in Brazil picking up marginally, more so on the unsecured space but marginally in the secured space, but it's really on the cost of funding versus the asset side margin. You're probably going to see that kind of open back up. I think given the Q3, it's probably a safe way of looking at it, but Q1 will be the same again as Q4.
Then just a final question for me is about your current investment pipeline. So if you could just elaborate a little bit on what you see going forward, how many new portfolio companies you would like to add this year? And what's the -- what's the current funding need among the existing portfolio companies?
Yes. And that's fair. Look, we're kind of -- we're busy as ever a pipeline in terms of opportunities that are coming at us. But I guess, the conservatism kicks in, in windows like this as in the capital gets more and more precious. And we're asking ourselves, like last year, we asked ourselves, we always have a 30% IRR threshold for putting $1 to work. And last year, we're just missing a lot of deals based on valuation. We kind of asked ourselves a 20% to new Turkey, but we didn't go there, thankfully. And then we kind of come to this year, when asking ourselves it's 40% on new Turkey, just because things are trading at low ebb multiples opposed to mid-cycle multiple. So why the hell would we pay mid-cycle, if we can pay low ebb.
So to answer your question, we're busy in Brazil, we're busy in India. We're getting a lot busier in Indonesia, and we'll have a team down there as the first market. New mark, we've done for a while, I have a team on the ground there late May. There are probably 3 markets we're spending most time on. But I think it will take a bit of time. We will look for better value, deeper value. I think this crisis has some legs. I think it can change every quarter, whether it's macro markets, share prices, et cetera. But I think we're sitting on our hands probably for a quarter as we watch, while getting into the pipeline.
And then you look at our own portfolio, as I said, the bigger names are funded, probably the next big one within our portfolio to need funding would be probably Konfio, who may need funding to finance the acquisition of a bank should that happen. And that will be a very exciting way to put capital to work for an asset, which will be the game changer for them. And that's not this year, we don't think, probably into next year. Some of the smaller names will need capital, and we've already seen Abhi raise capital, Magnetis will raise capital, it will be just small checks for us, $0.5 million, $1 million, 3 or 4 names in that category.
So -- but also watchful for opportunities where, these are windows where positions and names like Creditas, Juspay, Konfio et cetera, get spat out, secondary sales, the stock at discounts and they're the kind of things we want to be ready for, as well as buying back our own stock.
Our next question comes from the line of Joachim Gunell of DNB Markets.
So starting off, if we take, call it a slightly broader view. Can you talk about what your expectations are in terms of -- I mean, traditionally, we have this lag in -- from public to private markets in terms of valuations. You've commented on this, where you say that, okay, it's in the early stage phase, it remains quite buoyant, although, I mean, later stage things have really started to dry up a bit. So with regards to the fact that, okay, obviously, it's in the later stage category, your assets are really cool at moving the needle on your NAV here, at least it's fair to anticipate that for the coming year. So from a relative standpoint, what opportunities and risks do you see with this?
So let me try and unwrap this. So you're looking at -- the later stage markets obviously are ones that are -- we've seen the biggest slowdown in the private space. And that's just a function of, I guess, -- well, inside our portfolio, nobody needs to raise, but I guess, if there's companies out there in other people's portfolios or just in general, they probably don't want to have to raise right now, because, I'm just look at Bloomberg screen, and that will give you a 1,000 reasons why you don't want to raise in this environment or right now, and that can change.
So I guess we don't have a lot of data point on the later stage, but they will start to come through in Q2, Q3, Q4 as certain companies out there in a variety of sectors, not just fintech have to raise -- well, have to raise or do something dramatic from the cost point of view or from the business point of view or just simply fail. So we're going to see those data points coming through as we go through the year, should nothing else change in the broader markets. And then we'll start to see some valuations out there, more depth -- everybody can find 1 or 2 out there right now, but just more depth to that later-stage valuation curve and what's what. We've always got the public markets to look at and that's what we look at.
And one needs to be very cognizant of public market multiples and periods for our names. But I think we've got to a point where, as I sit here with the holdings that we have -- we've got some serious businesses in the portfolio, Creditas, Konfio, Juspay to name but 3, and I can go on. As much as being a BC and being biased in your own portfolio holdings. Those companies have real businesses, real unit economics, real futures in Creditas, in path to profitability. So very good shareholders in the public and private sense of the world and don't need capital in this window. So it makes us happy to be in that place.
If you had to force raise for any company now versus last year premium this can be the difficult markets, you're price taker, the post price setter, I think that's just what we see out there. But more -- I think more specifically than that, I think quality will still raise. So we had Rupeek, for example, in our portfolio. I just add on, did a raise in Q4, but added on top of that, doing it now or it's about to do it. So at that round valuation, that happened and that's welcome, because quality is able to raise at the last round or the most recent round or at a reasonable price. So I think quality will still come to the floor. People like Creditas, like Juspay will still have demand for it. And we just closed an extension round also for Juspay. Where they're bringing a bit more capital indoor at the recent round valuation, it makes a lot of sense. You just top up of your capital, you just raised in Q4. And when that money comes in the door at the same valuation, more quality investors in there.
So I think from our portfolio risk rewards, I think risks, it's -- we're sitting back with all of them. We're focusing on strategy, we're focusing on extending runway, just in case if you need to raise in Q1 next year, let's make it Q2, let's make it Q3, maybe you can top up your capital position. You've just done a funding round, I would say with Juspay, Rupeek, and you can top it up. People are still knocking on your door, top it up, get a bit more runway and involved. And yes, focus on the core. So I think that's what we're doing with our portfolio companies. I think the risks came is just the longevity of this. Like we're here sitting here talking in the next quarter and markets turn over another 25%, if currencies go -- if that hits macro harder and the outlook for our company, it is worse, we're having a different conversation that we're having today. That's the kind of a media stuff, it goes into 2023, you have sale markets, all of that dry powder on the private side is spent that you got less demand, prices come off. These are all things that we're going to have to look through and deal with as we go.
So the kind of what we showed today is kind of a static point at the end of Q1, which we believe is true and fair and we stand by. So these are very fluid markets. And we've been here before, and we've been here before in Q1 '20. And then we had a totally different market in Q3 '20 as everybody is predicting the end of the world in Q1 '20. And then we're off to the races again in Q3 and Q4, nothing that will happen this time, but we have to be cognizant and not get carried away and extrapolate on the way down or on the way up.
Absolutely. And I mean, people tend to overshoot both up and downside. But I mean if anything, I mean, your core holdings, it seems like they recapped just at the right time here by end of 2021. That said, can you say anything about -- I mean, if you -- I mean given that you're very long-term, would it be reasonable to try to commit to follow-on investments in existing portfolio holdings at, call it, lower valuation and committed to down rounds in order to maximize, I mean, return on investment? I mean, how do you look at this phenomenon? And perhaps also, I mean, some comments about what's going on, on the ground in, I mean, emerging markets this industry or the ecosystem here, where I guess there's risk that a lot of entrepreneurs, et cetera. I mean will be a bit, call it, yes, -- people have an incentive to make things move upwards basically.
But we're -- I'd like to think we're different, because we're public, like different because of permanent capital, long-term view. If we can buy Creditas stock for half the price, why wouldn't we just. Good business, same with Konfio, same with Juspay versus what we just paid for it. So if those situations come along, we're not going to command Creditas to raise twice the price, because look good. We want to buy those shares, we want to buy best quality shares at the cheapest price possible. So we'll deal with situations like that. And we're not impregnable to that. Like we've got 16 holdings in the portfolio. And how can you not find some pain through this window. I think we're sitting good right now, but it's a fluid situation. And we've dealt with these things in the past like Xerpa and GuiaBolso, and you've got to deal with them, like you deal with the [ EC Curves ] and the Tinkoffs.
But what I'd say is, the feeling on the ground in these markets, local BC ecosystems are well set. I'm thinking Brazil, Mexico, India, Pakistan, we've been to all those markets recently. Local funds, who've raised in significant size, [indiscernible] all the ecosystem in Pakistan, all raised $100 million funds plus/minus. India, we talked to [indiscernible]. So there's a lot of funding dry powder built up and the early stage is busy, and that's very busy locally. It's probably the latest days, the Tigers, the SoftBank, the [indiscernible] some of the corporate VCs who had drift over the public funds into private to crossed over defense. These are guys who are probably pulling back a bit, holding tight a bit, not to speak for these funds, and I'm not trying to. But it's more dark side of things that have seen a bit of a slowdown, I would say, or a bit of a risk-off moment, let's breathe, let's watch, let's see what happens next.
Just finally, it makes sense to -- I mean, keeping -- I mean, broadly, your NAV on an aggregate level, relatively unchanged quarter-over-quarter here. So -- and what I mean with that, the best way to look upon this going forward is right, look at, okay, sequential development for fintech peers multiples. We look at the sequential, call it, revenue growth rates for your aggregate holdings. And in addition to that, we have the -- yes, basically, the FX components. So I mean, the net effect of that was actually rather flattish here in Q1. And I would assume that's the best way to keep track of this going forward as well.
And at what stage do you think that okay, is this the 12 month period where you will actually move to mark-to-model or could we see more companies move to mark-to-model already by Q2, although they haven't reached that time frame?
Yes. Your first point is correct. That's the way to look at it, we think about it as the way we think about it from a short-term kind of valuation stress test point of view. And I'd probably look at something like FinanZero, which we just moved to mark-to-model, embedded all the benefits of -- we buy it at a year ago in a funding round but at 12 months of growth under sales and some currency tailwinds in Q1. But then obviously, some heavy pressure from the multiples against it, that ended up at 9% down quarter-on-quarter versus last investment round, which is, I guess, negligible in our world. So that's -- the way you think about it is the right way to think about it.
And in Q2, I think let's look at the data in Q2 as it comes. And then we sat down with each position and we felt good about ourselves in Q1. If we don't feel that way in Q2, we'll make changes. So we're very open to changing things, it's just a function of data.
Sure. But can you say anything about the threshold for when you think that, okay, it's tangible enough to move to a mark-to-model already before we go beyond that 12 months since the last corporates?
And obviously Herman touched on it as well. I would just say if we're not comfortable with the valuation based on the data that we see, which is basically multiples extrapolated from the valuation that we had at versus what the market peer group says, cross reference or growth rates versus our peer group, if we're not happy, the big discrepancy. And you're asking for threshold specifically, I haven't got on top of mind. But we will move it, and we have done that in the past.
Our next question comes from the line of Patrik Brattelius of ABG.
My first question is a little bit follow-up on the topic you just discussed there. Have you done any exercise where you looked at the whole portfolio now in Q1? And you valued market-to-model how that would impact the net asset value?
This is what we do every quarter. So every quarter, well, that effectively is what we do every quarter, because we're shadow valuing these companies on the next 12 months revenue that they're delivering against the peer group with the currency baked in, and we have a mark of last round, should we have gone around in the last 12 months and we're comparing it to it. And once they're in the same ballpark, we're comfortable sitting with our position as it was. So effectively, we're doing this every quarter. It's not like we marked something to the last investment round in Q4 '21 or Q3, and then we turn off the lights, and then we wake up 12 months later, and we go again into a mark-to-model so it's constant.
And given the answer to a previous question then, you cannot really disclose what the difference has to be in order for you to move then to a mark-to-model valuation, I guess?
Yes. Look, we can't disclose, unlike obviously we've got 3 Amazon with 3 analysts asking the same question. So the point is clear and made. So let us come back to you on that to all of you with something a bit more logical and clear to answer that, because while we are comfortable with this, I noticed the window were one nice to get more detail, more transparency, double-click on everything. So yes, we'll come back to you on that.
And then you mentioned there in passing that you hope the real listing will be done in not too distant future. Can you share any more details on that comment? And also, at which discount level, do you see buyback as an interesting alternative, like, for example, if -- like one of your comment here on the call, it sounded like where it currently is trading buybacks is interesting. But like when we talked a year ago, that was not an auction. Can you give us a little bit of flavor where do you think that is interesting, please?
Yes. Look, on the -- moving to the main board, it's -- we don't get the call to date on that. There's a process, there's a committee involved, they're doing their work on us, they will have recommendations and decisions made. But like you know, I would like us to be listed on the main board this summer, that's our goal, but not totally in our hands. And if we get some feedback, we need to change some things about the company in order to get there that may delay it further, but so far, so good in the process. So the plan of the hope is for this summer. And from a buyback point of view, any dollar of capital that we put to work, we have a 30%, 3-0 percent threshold of what we're looking from an IRR point of view, but us putting money into new companies, current portfolio companies are effectively buying back our own stock.
I think on the market today, we trade north of 40% discount to our NAV, and NAV that we stand behind as of Q1. And so it's a no-brainer way of putting our capital to work by buying back our own stock at these levels, that will be north of 30% IRR. So happy days. So we need to get to the main board to be allowed to do this. We also need to size what we do this and how we do this, because while we do have $75 million of capital, it's enough, it's not a lot. And obviously to manage that and buy back in an orderly larger commander with all the permissions in place that we need from our Board.
I know for banks, they need an improvement from the Swedish FSA, in order to buy back shares. Do you need to fill out any lengthy requirement in order for you to be able to buy back shares? And have you filled out and have that process already started?
Yes. I don't believe, so Patrik, I'll also double check and our counsel would say that. But no, I don't think we need to -- I don't think we're in that bank category where we need to fill out those forms. I think it's -- we need the approvals in place, AGM in the Board or just board approvals, but I'll double check with Henrik and Helena and come back to you on that.
Yes, it's no covenant problems with issuing a bond and then using those proceeds to buy back the shares, that is not in the slide.
We won't be -- well, yes and no. But I guess there's different ways of looking at this. We will put the bond proceeds to work in the manner that, that the mandate is for those bond proceeds. So we're going to be investing in sustainable finance and there's a number of companies that we put that money to work in. Obviously, buying back our portfolio, which is, I think, it's 70% to 80% compliance with the bond framework for social. I don't know if that counts. We probably won't be using that money for buybacks. And we'd be using that money just for directly investing in companies like Abhi and Solfacil, et cetera.
[Operator Instructions] And we have no further questions at this time. Please go ahead, Dave.
Super. Thanks, Jerry. Look, thank you, everybody, for your time this quarter, for your focus on our company and your interest. Thanks to the analysts for the questions, deeper and logically so at this point in the cycle and a bit of pushing around, which is always welcome, and we can do more offline, that's very welcome also. We get the position of the markets, we get the position that we're in. We're feeling happy about ourselves. And I get the feel of the market is also, and the question marks are coming around NAV today, NAV tomorrow. And these are logical questions and stress tests that you should be doing as analysts and investors, and we're doing all the time in-house, and we'll continue to make that as we go. So thank you again for your time and look forward to talking next quarter.