Wealthy families want to provide themselves with food of impeccable quality, at fair prices and spend a minimum of time and effort on this.
The online regular food delivery service completely solves this problem and value proposition:
+ a wide range of unique products;
+ products only from trusted suppliers;
+ products with guaranteed quality;
+ products available for ordering at any date;
+ technology ensures the delivery of only fresh products;
+ convenience of selection, purchase and payment from mobile and PC;
+ can be ordered from "today to tomorrow" 6 days a week;
+ Delivery to the address or to a convenient point of delivery of the order.
Market
The potential of the market for on-line purchases of good food products only in Kiev and in the suburban cottage towns is more than 120 million USD per year (30 thousand families (this is 2-5% of the total number) with an average check per week of ~ 2,000 UAH).
The team soberly evaluates the competitive environment.
We know and follow competitors online: http://thelavka.com, http://naturfood.com.ua, http://folvarok.com.ua, http://freshmart.com.ua
We know and observe indirect competitors offline: spontaneous markets (Vladimirsky, Zhitniy, Stolichniy, Besarabsky; farmers' Bazaar (Domosphere); Good Wine, LeSilpo, Eco Shops.
We know and use the useful developments of such services abroad: http://lavkalavka.com, Russia (Moscow), https://moscowfresh.ru, Russia (Moscow), https://ranozebrano.pl, Poland (Warsaw).
We visited and studied the service “Good Eggs” https://www.goodeggs.com USA (San Francisco).
Experience and traction
For 3 years, the project team created a business in the field of food delivery and sold it in 2017, knows this business from the inside and is ready to implement pivot today, taking into account experience and mistakes made.
- We delivered to customers more than 12 thousand orders worth more than 13 million UAH .;
- We have served more than 2.8 thousand customers;
- The cost of attracting one client amounted to 132.4 UAH.
- The average marginal income per client amounted to 1484 UAH .;
- Created a software product for the online store and production;
- Our portfolio totaled more than 3 thousand. products from ~ 250 suppliers
- Systematized all business processes
- Created scalable technologies for each stage of production
- Created an iOS application
- Set up management accounting with online access in real time
- We sold this whole business in September 2017, which still exists.
Starting point
We have done hundreds of experiments, tested hypotheses, discarded all that is superfluous, and experimentally obtained a model that is ready for a quick start and business scaling.
What do we have to start:
- A detailed plan for starting a business from scratch;
- Basic software: front, back, ERP + iOS application
- Customer base
- Base verified suppliers
- Product Matrix
- Technology, procedures, job descriptions
- A proven strategy to attract new and retain existing customers
- Partially equipped project team
Investment needs
To start the project, investments of $ 417 450 are needed, of which:
$ 216,000 - Creation of a production base:
- packing and packaging area
- quality control laboratory
- workshop-kitchen-cooking-cutting
- motor transport
- refrigeration equipment
- warehouse equipment
- finalization of the software product
- creation of site content
$ 201,450 - Operating Capital
Targets
By 16 months the project reaches breakeven:
- we ship an average of 70 orders per day (6 days a week)
- turnover 1.6 mln. per month
- margin 40%
- The average check at 1100 UAH.
At the end of the 4th year (48th month after the start):
- we ship an average of 370 orders per day (6 days a week)
- turnover of 11.2 mln. per month
- margin 42%
- average check in 1 300 UAH
Total retained earnings will amount to: 22.16 mln.
At the same time, the project expects to occupy a market share of only 3%
Offer to investor
Profitability of 15% per annum on the amount of investment
Share in business in the amount of: 25%
- Return on investment from 16 months after the start of the project
- By the 35th month after the start of the project, the full return of the "body". This payment uses 100% of the project’s profit.
- By 40 months after the start of the project, full payment of% at a rate of 15% per annum. This payment uses 50% of the project’s profit.
- In the period from 35 to 40 months - it is planned to pay 50% of the project profit to shareholders in the form of dividends.
The subsequent redemption of the investor's share by the management is discussed.
Special conditions
Syndicated financing of the project with a check of each investor from $ 100,000 is considered.
InVenture acts as a Lead investor in the project: finances 10% of the required funding + in the interests of financial investors acts as the project coordinator.
Additional information on the project will be provided by request.
