How we helped a Fintech Investment Bank to conduct a TAM analysis for an Embedded Finance Fintech firm to expand into new geographies

The Context

The client, a US-based Boutique Investment Bank asked the TresVista team to conduct a TAM (Total Addressable Market) analysis, as part of a broader Series A fundraising CIM for an emerging Embedded Finance Fintech firm based out of Israel. To help begin the analysis, the client provided the target geographies and the target company that could be a potential investment to enter the geography. Additionally, the client shared the unit economics and the management expectations to help calculate a serviceable market from the addressable market.

The Objective

To conduct a TAM analysis for an emerging embedded finance fintech looking to expand into new geographies.

The Approach

The TresVista team followed the following process:
• Finding consumer loan data across the target geographies
• Breaking down the data collected by sectors relevant to the target company and calculating revenue generated
• Reducing the addressable market to the serviceable market as per management estimates and industry trends

The Challenges We Overcame

The major hurdles faced by the TresVista team were:
• Very niche & new industry – hard to gauge the addressable market via a bottom-up approach
• Visualizing the analysis in a synthesized way while still maintaining accuracy
The team overcame these hurdles by discussing their top-down approach with the client, identified key markets and unit economics to help bring the total consumer loan value down to the TAM and then the TSM (Total Serviceable Market).

Final Product

The Value Add – Catalyzing the Client’s Impact

In an effort to add value to the client deliverable, keeping in mind the limitations of explaining an entire TAM analysis in a single slide in the CIM, the team created a high-level version showing the analyses in the form of an infographic.