Founded in 2004 by Serge Elkiner, YP is currently owned by Serge Elkiner, through his father Pierre Elkiner (27%) and Rafael Russ (14%), who collectively own 41% of the Company (the “Sponsors”). Other major shareholders include Jack Bursztyn (17%), Sascha Nussbaum (8%) and Thibault Relecom (7%).

The total project is estimated at $ 6mm. IFC is considering an equity investment of up to $ 4mm in the form of Series B Convertible Preferred Shares.

4.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	4.0

* These investment figures are indicative

With over 1.5mm active users a month and handling approximately 4.5mm transactions monthly, YP currently operates in 6 Latin American countries including Bolivia, Colombia, Ecuador, Guatemala, Panama and Peru. The proposed investment will support product development and expansion in 2 key markets, Ecuador and Guatemala as well as a new data center in the Dominican Republic.

The anticipated development impacts of the Project are: 1) Access to financial services to unbanked: The project will help improve access to basic financial (payment) services for un-banked segments of the population, as YP's model allows for simple and secure access to financial services to such segments using the mobile platform. 2) Increased business volume for MSMEs: MSMEs, who typically do not have the ability to accept electronic payments, will benefit from a simple and secure electronic payment method, increasing merchants current competitiveness vis a vis larger stores. This could also help MSME's market their products to a broader geographic range of consumers since payments can be received electronically. 3) Promote connectivity: Mobile payment platforms such as YP's end up fueling the demand for better mobile connectivity among individuals and MSMEs. In turn, telecoms and broadband connectivity fuels the flow and exchange of ideas and innovation, directly leading to increased productivity. Connectivity and e-business in general are critical for helping LAC bridge the digital divide with more advanced regions.

Access to WB Group expertise / Knowledge Sharing: WB and IFC have been accumulating both business and regulatory expertise with regards to payment systems and services. YP sees value in tapping such expertise, especially as it replicates its model into new countries within LAC. Leveraging IFC relationships with Banks and Telcos in LAC: IFC has an extensive network of clients in the Financial Services and Telecommunications area in Latin America that can be used to help the Company enter into new markets and build partnerships with these institutions. Governance strengthening in preparation for an IPO: YP sees an IPO in its future and believes IFC will help strengthen governance which will, in turn, boost its credibility in the public eye. It believes IFC will provide the balance needed between the new equity investors (namely the IFC) and the founding management team and shareholders, so that YP makes the right decisions for the right motives.

This is a category C project with minimal risk issues. Key environmental and social issues in the proposed investment are in the areas of Human Resources and security services. Under IFC’s investment, YP would be required to implement HR policy and procedures to comply with IFC’s Performance Standards.