Seven questions, seven answers. Munich Startup in conversation with the founders of SPENDIT.
1. Who are you and what do you do? Please briefly introduce yourself and your product!
We are Florian Gottschaller and Dr. Ralph Meyer, both born in 1974. We met through our Munich network because we both wanted to make a difference. As investment bankers and management consultants, we reviewed and rejected a few ideas until we became aware of rulings by the Federal Fiscal Court that permitted tax-free non-cash benefits, including prepaid credit cards. This led to the creation of Spendit and the Spendit MasterCard, a kind of universal voucher for tax-free or tax-privileged non-cash benefits for employees.
This card replaces, for example, fuel vouchers or job tickets. Companies can thus provide their employees with up to €960 tax-free and €11,000 tax-free per year. Since everything is handled digitally, companies have minimal administrative overhead, and employees can spend their money at over 36 million acceptance points worldwide – including online, of course. Because the Spendit MasterCard is used in the field of interaction between companies and employees, it is highly versatile. Employer branding plays just as important a role, as does the recognition and appreciation of employee achievements. Intern salaries can also be significantly improved through the various modules of the Spendit MasterCard.
2. But that's been around for a long time!
Yes, but only in paper form and associated with a significant administrative effort. We are completely digital, flexible, and not tied to any system partners for redeeming the vouchers. We have also developed service platforms that take care of all the organizational aspects for companies—something that hasn't existed before in this form—we call them digital employee benefits.
3. What has been your biggest challenge so far?
On the one hand, there was sales. Finding the right people and creating the optimal structures for this wasn't easy. On the other hand, it wasn't always easy to convince the tax authorities of our ideas. But with the help of the right experts and the support of the Bavarian Ministry of Economic Affairs, we managed to tell our customers with a clear conscience that all our products are 100 percent tax-compliant.
4. Let’s get down to business: How is business going?
Excellent, we can't complain. The Spendit MasterCard is already in the black after just 18 months. Our team is growing, and we're currently working on another product that allows employers to use an app to support their employees with up to €6.20 per day, tax-free, for lunch—the world's largest canteen, so to speak. Over 450 companies in Germany and Austria now trust us. Further financing is also in place. We've found investors who liked our ideas so much that they've all contributed their own assets. We're very proud of that.
5. What does Munich mean to you?
Munich is our home: Florian is a true Munich native, and Ralph has been at home here for a very long time. We know the location very well and greatly appreciate the favorable conditions. These include the excellent infrastructure, well-trained employees from Munich's universities and colleges, as well as the many potential customers that Munich, or rather Bavaria, has to offer as a business location. Furthermore, as a young company, Spendit has always been treated and supported professionally by the authorities and official bodies. Therefore, we knew from the start: If we couldn't make it in Munich, we wouldn't make it anywhere.
6. How will your startup become the next unicorn? Or will we see you soon at Epic Fail Night?
We launched in March 2014 and have been going from strength to strength ever since. We're optimistic that we'll still be around in a few years. We also believe that our second product, the Lunchit app, will make us even more attractive to many companies. There are still other markets to explore. Our motto: Keep at it.
7. Bavaria or '60?
I prefer Bayern Munich – but I prefer Boris Becker even more. We both love playing tennis.
