ugift pitch deck
Post on 21-Oct-2014
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DESCRIPTION
This is the pitch deck for angel round of funding for uGift.com.ua, the plug-and-play gift certificate solution for small and mid-sized businesses in Ukraine.TRANSCRIPT
www.ugift.com.ua www.angel.co/ugift
The Most Convenient Gifting Solution in Ukraine
Problem = Poor gifting solutions in Ukraine
Requires merchants to make a design, print many cards, purchase special software
Typically only sold inside the merchant’s own store (ie. attracts only current customers)
Gift Cards by Payment Systems
Not available in Russia/Ukraine due to legislation (not expected to change soon)
In-Store Gift Cards by Retailers
Online Gift Cards by Retailers
Mainly only promoted on company’s own website
Often not visibly appealing as a gift
www.ugift.com.ua
Online Gift Card Specialists
Only promoted online
Little / no personalization
Not promoted by partner
1 2
3 4
Our Solution = Maximum flexibility where you buy
On uGift Website On Partner’s Website using uGift API
At our Partner’s Shops
(just grab a card from stand and pay)
At Retail Partners(sell “universal” certificates for 3 denominations)
Our website has the simplest, best user experience of any gift certificate site on the
Ukrainian market. See for yourself!
Our Solution = Maximum flexibility where you use (over 70 partners signed in Kiev)
Restaurants
Salons
Sports Clubs / Dance Studios
Snow boarding lessons
Cooking Classes
Photo sessions
Bowling
Retail Stores
E-stores
Karting
Aqua Park
Our Solution = Maximum flexibility in how to deliver
Physical Card Delivered by Courier
Facebook Wall SMS
How our product works?
www.ugift.com.ua
Customer sees ad for uGift on Google or sees our stand in his favorite restaurant or salon1
Customer visits site and selects what merchant he wants to buy a gift for and amount to give2
Customer makes personalized greeting card and uploads optional photo(s)3
Customer choose delivery method and pays4
Delivery Email SMS
Receiver gets uGift and uses at the store5
Merchant checks security code to authenticate and accepts the uGift
6
How we get customers
Online Advertising / SEO Weekly Friends’ Birthday Reminders
Visibility in Retailers & at our Partner’s Outlets Active Social Network Strategy
In top 1-2 pages of search results on all key search terms relating to gift certificates
A4 sized stand sits near cash register in 30+
partners and 4 retail partners
150 Likes on FB, 300+ on vKontakt and many
more on Google+
The main competition is from online gift specialists
Online Gift Certificate Sites(Bodo.com.ua, Originaloff.com.ua)
• Their strategy: Focus on selling online and target mainly fun activities (eg. skydiving).
• Their Strength: High search results, recognized online brand
• uGift’s Advantages: 1) No service fee2) Ability to add greeting cards3) Much more options (especially restaurants, beauty)4) Better design/user experience5) Ability to buy in partner’s store or site6) Ability to buy in retail outlets
R www.ugift.com.ua
• Their strategy: Provide a choice of several different gift options and allow receiver to choose one. Sell in retail and online.
• Their Strength: Good retail presence, recognized brand
• uGift’s Advantages: 1) No service fee2) Ability to add greeting cards3) Instant delivery by SMS & email4) Ability to choose any of uGift’s 60+ partners5) Ability to buy in partner’s store or site
In-Store Certificates(Smile)
Right now there is no competition in retail… it is a land grab!!
Our Business Model generates strong gross profit!
www.ugift.com.ua
Payment to a merchant
Cost of a new customer
$4
$21
Average value of a card
Gross profit
$5
$25
Revenue per customer
$9(35% margin)
• More than 50 partners signed at margin of 30-40%*
• Daily Deal sites take 75%+… uGift is an easy sell!
• Target conversion is 2% on combination of CPC/search engine results (current = 0.5%, reducing through user experience improvement)
• Target cost of 1 visitor = $0.10 (current = $0.15, reducing thru SEO strategy)
• Therefore new customer will cost ~$5 (or $0 if they find us in-store)
Voucher for
200uah(65%)
16% of card value
Economics of Typical Transaction
*Standard margin is 40% but just 30% for those merchants that offer to place a uGift stand that we provide them at the cash register.
Validation of our model
www.ugift.com.ua
• We are already selling about 5 -10 certificates per week… or about $1000 of gross sales is forecasted for August
• This is with very little marketing budget and we are just launching our vastly improved new site
• We have invested in SEO and it is starting to show its results… uGift is in top 2 pages of search results on most popular search terms
• Retailers are eager to sell our certificates and are willing to do so for a margin of just 11%. We already have 4 retailers signed and are talking to numerous others.
• Our partners are willing to sell our certificates in their own stores and still give us 30% commission (about 40 of our 70 signed partners have agreed to this so far)
Our Team is one of the most experienced startup teams in Kiev
COO - Andrey Jivolovich• Formerly head of strategic projects at
Groupon UA• Previously was an equity trader at Phoenix
Capital
Team Board
CTO – Mark Magura• Formerly CTO of Vertigo• Graduated National Aviation University with
specialty in programming
Ken Leaver• CEO of Groupon Ukraine, the leading
daily deal site in the country• 7+ years of strategy consulting
experience (incl. BCG) + 3yrs at Visa Inc.
Hrish Lotlikar• Managing Partner, Eastlabs• As working as a VC at Spencer Trask
Ventures, invested in Innocentive, Cybersettle, LocalMatters.com, others
Daniel Tonkopiy• Co-founder and CEO of Best.ua, one of
the leading review portals in Ukraine
Alexey Orap• Co-founder and CEO of YouScan• 15+ years experience in Internet and
telecom (Yandex, Alcatel-Lucent)
www.ugift.com.ua
Mentors
Head of Sales – Andrey Tirel• 2 years at DSS Global Trading where Andrey
rose from Junior Specialist to Head of Dept.
Dmitry Havrylenko• Managing Partner of Investment
Banking, Pheonix Capital• Managing Partner at Concorde Capital
The Ask and Funding Uses
www.ugift.com.ua
• Looking to raise $80,000 of which we already have $40,000 as a soft commitment
• This will be used for: -$20,000 for marketing (SEO, Pay-per-Click) -$30,000 expansion of partner network & expansion of retail sales in Kiev -$30,000 expansion into 5 regional cities
• Milestones that we will reach:1) Break-even by February 2013 (no further funding will be needed before achieving break-even)2) $20,000 of monthly sales by end of year