Current Status Pre-Revenue
Amount Invested RM60,000
Funding Required RM600,001 to RM1,000,000
Description Fidu is a B2B procurement system for HORECA that automates the end to end sales process between buyers and suppliers. Fidu acts like a virtual assistant that handles procurement, logistic, payment and sales without any manual intervention. Fidu comes with an automated ecommerce marketplace, an automated inventory management system and integrated logistic and B2b payment solution. Fidu is a plug and play system that is able to be integrated with other POS (Point of Sale) Systems, inventory management systems and accounting systems.
Business Opportunity Buyers constantly look for good products at a competitive pricing and the process to source for reliable suppliers is a tedious and manual one. Fidu covers 3 components : sales of suppliers, procurement and inventory of buyers. Buyers come onto Fidu platform to search for suppliers and procure from them. They will procure in 3 clicks and enjoy payment, same-day delivery and analytics solution that comes with the platform. With the analytics, Fidu is able to forecast and recommend its users accordingly. Buyers are also able to understand their consumption and buying pattern and hence able to make decisions to improve their operations and revenue. We remove middle men between buyers and suppliers to keep the pricing competitive. There is a total of 190000 HORECA (hotels, restaurants, cafes and caterers)players in Malaysia in 2015 and the total revenue of HORECA in ASEAN is RM500billion. Fidu targets cafes, restaurants, caterers and 3-star, boutique hotels. By 2020, Fidu will have 14,000 users across ASEAN. In Malaysia, Supply Bunny and Dropee are the B2B ecommerce marketplace that services restaurants and retail. In the international market, there is Zeemart (a procurement system) and Marketman ( Inventory Management System). Fidu covers the whole supply chain from inventory to marketplace to procurement with integrated logistics. Our big data analytics is the key to help our users in this traditional industry to improve their operations and revenue.
Revenue / Business Model There are 4 main revenue streams for Fidu. Buyers pay a monthly subscription fee of RM50 whereas it is free for suppliers. Buyers and suppliers are able to pay for additional features that they might need, ranging from RM1 – RM50. These features include additional user accounts, detailed analytics report, additional product listings and etc. There is a a convience fee charged on every transaction that takes place on the platform, bore by the buyer, ranging from 0.5% to 2.5%. Lastly, suppliers are able to pay for advertisement on our platform to boost their posts, increase visibility and showcase their promotions.
Management Team Sarguna as the CEO has 10 years of experience in manufacturing and 5 years of experience in hospitality. He is also the founding partner of Simply Cookies Sdn Bhd, a cookie manufacturing company and My Spices and Condiments Enterprise, a B2B sales agency in spices and condiments. Sue as the COO of the company has 10 years of experience in product development across IT and engineering industry and 5 years of experience in food and beverages industry. She is also the co-founder of Simply Cookies Sdn Bhd, a cookie manufacturing company and JM Nutrition Consultancy, a nutrition school for children. Chhua the CTO of the company has 15 years of experience in leading an IT department and 17 years of experience in technical software development from IT R&D to banking software and machine translation. Han the CRO of the company has 7 years of experience in Human Resources Consulting. He is also the founding partner of My Spices and Condiments Enterprise. We have 3 advisors who are playing active roles in the company and they are Haresh, Jofri and Dr. Vinay. Haresh has 22 years of experience in the hospitality industry, Jofri has 22 years of experience in Sales and Telco IT industry and Dr. Vinay has 27 years of experience in hospitality industry.
Company Background The company is incorporated as Fidu Technologies Bhd on 7th July 2017. So far we have raised RM60,000. Currently, we have a demo account. We have validated our solution with users who have signed up with us even without the platform ready. Currently, we have got 150 restaurants and hotels, 70 suppliers on board with us. The suppliers are filling up our product template listing form for us to create the marketplace with their products. Our buyers include mamak chains all the way to big groups of restaurants like TGI Fridays, Rakuzen, Sushi Zanmai, Oriental. Our suppliers include CP, Safe Egg, Piau Kee, Long Seng with goods ranging from fresh produce to dried goods. We have Deans of hospitality school of universities like Taylor’s as our co-founders and active directors. We have struck up partnership with Zepto, Ipay88 and ARMS ( a top 10 local POS system).
Funding Milestone We are currently doing our pre-seed round to raise RM600k. RM200k will be used to develop web version 1, app prototype and integration with other softwares. RM50k will be used for office and IT equipment, RM120k will be used for grand launch in April and other branding and marketing exercise. RM250k will be used OPEX for 6 months. With this funding round, we will have 3950 users and a total of 12 features on the platform, targeting to bring in RM2 million of revenue by May 2019. Next round we will be doing Angel round to help us penetrate ASEAN and we will be raising Rm4.75million. The target will be to rake in RM9.5mil of revenue through 10550 users and 20 features on our platform by May 2020.
% Equity Allocation We are diluting 10% of equity for pre-seed round and 5% of equity for Angel round.
Expected ROI For investors who come in at pre-seed round, they are looking at 150 folds of return by year 2021.
Risks and Mitigation One of the risks faced by the business is the refusal of traditional business to adopt the solution. To mitigate this risk, we will be collaborating with associations and government bodies like Halal Hub, Matrade to run campaigns to educate them. Another risk is the heavy groundwork involved in verifying our users as we only accept verified users on our platform to ensure trust. This can be mitigated by creating SOP for verification. Once we have gone through a few rounds of verification, the SOP can be up and we will be able to streamline the verification process. The other risk is the various SOPs and processes among our users. As Fidu is a solution for our users, we have to learn and understand our users through data collection on our platform. With sufficient data, we will be able to cover all aspects of our users. Lastly, since we are a plug and play solution, it is time consuming to integrate with other software. This encourages us to create a nimble, flexible platform that can be integrated with any other software and by making a name for ourselves, other software will come knocking on our door to request for integration too.
Exit Strategies We are going to list on LEAP market in Malaysia by year 2020 and we are assisted by Arris Venture, a VC firm to shape the company towards that from today itself. Arris Venture is also looking to set up a VC fund to govern the investment that comes into Fidu. After LEAP market, we will be able to catapult to other boards in other regions.
Company Name Fidu Technologies Bhd
Business Address 7, Jalan Bayan 4, Puchong 47100 Selangor.
Contact Person Su Seau Yeen
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