|Project Title||CLAIMit is a restaurant and cafe deal sites offering steep discounts at famous restaurants to consumers who purchase them in the form of an electronic CLAIMit coupon. CLAIMit now requires seed funding to expand operation within Penang and across to other cities in Malaysia.|
|Funding Required||RM300,001 to RM600,000|
|Description||CLAIMit is an online site developed to serve not just as a directory of restaurants and cafes in Malaysia but also as a site for consumers to purchase coupons of those cafes and restaurants at a discount. The mission is to provide restaurants and cafes an online presence that they lack and to help these businesses generate traffic and sales. CLAIMit collaborates with the those businesses to incentivise consumers to visit and spend in store by providing attractive discounts.
Restaurants that agree to get listed on CLAIMit will offer a deal – an attractive discount on their food > Consumers will purchase the deal via CLAIMit in the form of a coupon > Consumers will present the coupon in-store to claim the offer. CLAIMit gets a cut from the sale of the coupon.
To make this vision a reality, CLAIMit requires a large restaurant base to give consumers the reason and incentive to visit CLAIMit. CLAIMit needs to have a restaurant base large enough to serve also as a directory for consumers.
To put this in a familiar perspective, I would suggest using hotel.com or agoda.com as an example. These online booking sites not only serve as a directory of hotels but the create an inventive for consumers to make their booking them by offering the best prices.
The vision for CLAIMit is close to those OTAs but it will be in the retail F&B industry and it will also be more localised.
|Business Opportunity||The main target audience are female majority aged between 18 to 40 who regularly go online, either on a desktop computer, laptop or mobile devices like tablets and smartphones. This is the group of consumers who frequent restaurants and cafes, who are relatively proficient with technology and are active online.
Majority of restaurants and cafes in Malaysia are small businesses with relatively low capability to get high online presence given the strong competition. Malaysian consumers are overwhelmed with options which makes it rather difficult for restaurants and cafes to get a bigger piece of the market share.
The main target market for these restaurants and cafes is this group of female aged between 18 to 40 who have the tendency to spend on eating out where there’s disposable income.
CLAIMit’s aim is to help bring these group of people to restaurants and cafes more often.
|Revenue / Business Model||CLAIMit acts as a middle person between businesses and consumers. Businesses incentivise consumers to spend by offering hefty discounts. CLAIMit provides marketing and advertising services (by presenting the deals to consumers), and distribution services (by distributing the coupons and managing the redemption).
Proceeds from sale of coupons will first be received by CLAIMit, and then reimbursed to businesses after deducting CLAIMit’s cut, which will be an agreed percentage from the gross revenue.
CLAIMit requires a sales team that approaches businesses to negotiate deals and getting businesses onboard and a marketing team that promotes the deals offered by these businesses and CLAIMit itself.
|Management Team||CLAIMit was founded by Louis Teoh and Alan Ong, both of whom had no coding or programming knowledge. Therefore, they’d engaged the service of a third party programming company to develop the system and the infrastructure of CLAIMit. Louis Teoh came from an accounting background, having graduated from Macquarie University in Sydney, Australia. Alan Ong came from an Engineering background having graduated from University Tun Hussein Onn Malaysia.
Both Louis and Alan have a similar vision which is to create an online platform that helps businesses grow and one that consumers love.
CLAIMit’s current sales executive is Coco Lim, who has had 4-year experience as a Sales Manager in a similar industry at livingsocial.com.my, now ensogo.com.my before joining CLAIMit in November 2015.
|Company Background||CLAIMit Sdn Bhd was founded in late 2014. It officially began its operation after the first quarter of 2015 when the system development was completed.
CLAIMit initially began as a deal site that provided various types of deals including restaurants, hairdressing, healthcare products and etc. However, due to strong competition from existing deal sites and lack of resources to compete against those sites head to head, we decided to focus only on one industry and excel in it – It was food and beverage.
CLAIMit rebranded itself as a restaurant and cafe deal site, offering hefty discounts for famous restaurants in Penang. We’d now like to turn it into a F&B focused deal site and we aim to create a large restaurant base to create sufficient traction for consumers to deem necessary to always visit CLAIMit before heading to any restaurants and paying full price.
|Funding Milestone||RM150,000 has been invested in developing the system and infrastructure, hiring salespeople to test out responses from merchants and customers.
Funding of seed money of RM600,000 is required to scale the operation in Penang and expansion to Kuala Lumpur.
Major areas where the funding will be allocated to:
1. Hiring salespeople
We are currently operating at an extremely low budget, with extremely limited resources and one-person salesforce. With funding, we could expand the salesforce to get more merchants onboard offering deals, we could enhance the user experience of the system, and we could engage various marketing activities to promote CLAIMit and increase user base tremendously.
|% Equity Allocation||30% Share will be allocated to investors.|
|Expected ROI||The goal is to be able to return 20% of the total investment in 24 months.|
|Risks and Mitigation||The risks are:
1. The reluctance of consumers to embrace yet another deal site given majority of deal clippers have had somewhat brief relationships with companies like Groupon, LivingSocial and other deal sites that have operated in the industry for quite some time.
However, CLAIMit will market itself as a restaurant deal sites. CLAIMit will get as many deals from as many restaurants as possible for consumer to deem necessary to always check CLAIMit for deals before eating out. Different to Groupon and Ensogo, CLAIMit focuses only on Food and Beverage giving consumers a good reason to use CLAIMit over other deal sites when it comes to food.
|Exit Strategies||1. If the vision for CLAIMit becomes a reality, this could be a cash cow for investors.
2. The business will be sold to an acquirer for investors to cash out.
|Company Name||CLAIMit Sdn Bhd|
|Business Address||No.32, Lorong Sungai Tukang 1/3, Kawasan Perusahaan Sungai Tukang, 08000 Sungai Petani, Kedah|
|Contact Person||Louis Teoh|