|Funding Required||RM2,000,001 to RM3,000,000|
|Description||The product of service of Seventeen Network Services Sdn. Bhd. is named as LOKEIN which is an online Community Marketplace Platform (Share Economy Model) for used-item industry or also known as bundle community. Why? Firstly, because Malaysia’s online used-item industry is BOOMING but SUFFERING with a lot of problems and issues in their daily trading activity happening basically on social media platform which made them in desperate need of a secured place for trading. Secondly, is due to the fact that Malaysia has the most online shopper in the South East Asia region.|
Bundle Community is having a very tough time in running their daily trading activity as there is total lack of systematic and secure online marketplace platform that perfectly meets their needs. Current most utilized platform is a social network medium such as Facebook and Instagram which are very unsystematic, hard to manage inventory, high risk of fraud and zero protection of buyers and sellers. On top of that, they are highly saturated and unorganized as they are not mainly designed for business purpose. The current ways of selling carried out by this community are very hard to manage without automated system being applied to the selling process. Current alternatives available have other problems: lots of scammers and joy buyer and very unsystematic business activity.
LOKEIN’s aim is to provide a high-tech, interactive and secure online marketplace platform for bundle Community which integrated with few options of convenience payment methods as well as to provide a fraud protection scheme for both parties. LOKEIN will provide an easily manageable automation system of few selling methods. The platform comes with a very special ambiance mainly designed for bundle community.
Our target market segment consists of bundle community (initial target market) and other categories community (started to target on month 7 onward). Based on benchmark and assumptions made according to Internet Users Survey (IUS) 2017 by MCMC, the expected prospect for these two groups is equal to 4.2 million with RM1,488,000,000.00 traded value (Market Value).
|Revenue / Business Model||LOKEIN main revenue stream will be based on 7% commission from the Gross Merchandise Volume (GMV) of an item that being sold in the marketplace. In addition to that, there will be several other revenue streams that will be implemented by LOKEIN in the future such as below:|
1. Premium Store subscriber monthly fee.
2. User listing that will be featured first on search standing, user profile wall and home page.
|Management Team||1. Wan Mohd Hafiz bin Wan Idris – The CEO who is the master mind of the business as well as the operation director who is responsible for the planning, executing, coordinating and controlling the production of service. A Bachelor’s Degree holder in Mechanical Engineering graduating from Universiti Teknologi Petronas, Wan Mohd Hafiz has 10 years of experience in e-commerce business, 500k revenue/year on current operated business. With his expertise and high degree of skills incorporate with entrepreneurial mind-set, he is often drawn to opportunities, innovation and new value creation.|
2. Nor Ashiqin Aiman binti Roslan – Chief Administration Officer (CAO) and customer care service manager. Her responsibility is to support operations by supervising and supporting staffs as well as planning, organizing, coordinating and controlling the function of the business organization. Also to oversee and supervise the provision of customers care with information to address inquiries regarding services as well as to resolve any customer complaints. A Bachelor’s Degree holder in Pharmacy from University Technology MARA, Shah Alam with 4 years’ experience as a management representative of quality management system (QMS) along with managing, problem-solving, decision making and communication skills.
3. Nur Hafizi bin Abdul Majid – Chief Marketing Officer (CMO) as well as the Creative Team Officer who is responsible in developing, implementing and planning strategic marketing plans. Additionally, he is responsible to create creative marketing contents and to manage marketing activities. He studied in Mass-communications course in Universiti Teknologi MARA. Hafizi owns 6 years’ experience in ecommerce business, comprehensive knowledge in used-clothing industry.
4. Mohd Zaidi bin Mohd Zuki – Head in Trust and Safety department and Customer Service Specialist who leads a team responsible for protecting LOKEIN’s users from fraud and ensuring trust in LOKEIN’s services. He is accountable for overall T&S strategy development, process development and technology implementation. He possesses 7 years of experience in which responsibility mainly on web store development, store maintenance as well as keeping the database of inventory. Monitored and dealt with many types of marketplace abuse, Mohd Zaidi highly understands the behaviour of users on e-commerce base business.
5. Mohammad Norhizami bin Mohd Rashid – Chief Technology Officer (CTO) who is a forefront of LOKEIN’s technology and the Head of Development team of LOKEIN online marketplace. He is responsible to ensure that the technology team able to contribute to the planning of all system’s technical aspects, development, implementation, control, testing and maintenance of resources and the system. Hizami holds a Bachelor’s Degree in Computer Software Engineering from University Technology Malaysia, Johor. He is a result-oriented iOS developer with 3 years of experience writing highly readable, clean, maintainable source code. Developed more than 10 applications for iPhone and iPad.
Outside of our management team, the opinion we trust the most in terms of financial wise belongs to Mr Roslan Khairuddin, whose experience brings up to 25 years in banking industry dealing with commercial and corporate loan. Holding Banking Studies Diploma from MIT, he owns 15 years of experience in financial advisory dealing with Unit Trust and Takaful.
Another adviser we strongly believe in his opinion in terms business development is Mr Rusli Mohamad Nor, whose experience brings up to 25 years with leading Malaysian conglomerate as head of soils and materials testing, Project Director for Highway upgrading project, Head of Expressway Facilities Management, International Project Team leader and Head of Regulatory Management.
On the technology side, the advisory that LOKEIN gets the valuable advice and information from is Mohd Faizul bin Mohd Ghazi who is an experienced lecturer with a demonstrated history of working in the higher education industry. He is skkilled in management, android development, Arduino, programming, and Respberry Pi. He is a strong education professional, who is currently studying Master’s Degree focused on Computer Science in Universiti Kebangsaan Malaysia.
|Company Background||Seventeen Network Services Sdn. Bhd. (1295843-X) is a private limited business entity which has four co-owners, three of which is an original members and one additional member. The four owners act as a Director as well and are as follows:|
1. Wan Mohd Hafiz Bin Wan Idris – Founder.
2. Nor Ashiqin Aiman binti Roslan – Co-founder.
3. Nur Hafizi Bin Abdul Majid- Co-founder.
4. Mohd Zaidi bin Mohd Zuki – Co-founder.
The original company was a sole-proprietor business registered under the name of Seven Symphony Enterprise (IP0334492M) which was initiated by principal owner, Wan Mohd Hafiz bin Wan Idris. Our company has been running an ecommerce business since 2010 on international marketplace platforms such eBay and Etsy and has become as a small service provider 2 years later to help local used clothing retailers to sell their products in our stores to penetrate international market. Until date, we have numbers of retailers, 2 big companies in the industry and 2 permanent partners which consistently consign their hundreds of premium items to us. Average revenue per month is RM45,000.00 as we are bound to the platforms’ policy and high take rate fees. The owner and the partners are also active users in local bundle groups in Facebook where they found out that there are too many business problems occurring within the community and due to that, a lot of retailers are waiting for us to open more slots for consignment. With these potential and confirmed clients, we plan to develop our own online marketplace platforms to create opportunity for them to explore international market themselves. Collaborating with the partners, SSE is later reformed into a private limited company under the name of Seventeen Network Services Sdn. Bhd. and the investment made to date is RM30,000.00.
|Funding Milestone||Seventeen Network Services Sdn. Bhd. seeking for angel investors for the purpose of expanding and to cover operating cost for 8 months to sustain the project in the early phase. However, for the purpose of flexibility, the expanding cost to kick-start the LOKEIN online marketplace will be RM750,000.00 and that will include the operating cost for 2 months prior for the pre-launching period. |
For the post launch MVP phase, we might need funding from angel investors to support the operation for 6 months in the early phase which are RM322,999.50 for month 1, RM297,999.50 for month 2, RM272,999.50 per month for month 3 until month 6. The total funding that we required is RM2,465,000.00 that will cover the expanding cost to start the project, the 2 months pre-launch operating cost and the 6 months post launch MVP phase.
|% Equity Allocation||40%|
|Expected ROI||500% in 3 years.|
|Risks and Mitigation||Competitors – Our system is designed by our in-house CTO and therefore the Functional Design Specifications (FDS) and source code will be owned by only us. The stigma of the community is difficult to tackle and only us have the knowledge to grab the community and turn it into our opportunity. |
Hackers – We maintain our web server and data base server in a 2 layers cloud server system so that hackers penetration is difficult to impossible. Framework in maintaining the source code in very high-end security state.
Users and platform protection – We have competent and experience in-house Trust & Safety team.
|Exit Strategies||We focus on potential exit in 3 years’ time by acquisition with valuation of FBA-ecommerce average multiply per business model. Alternatively, Locking in Profit will be made for investor by end year one.|
|Company Name||Seventeen Network Services Sdn. Bhd.|
|Business Address||7, Persiaran Putera 4, Bandar Baru Putra, Ipoh, Perak. Malaysia.|
|Contact Person||Wan Mohd Hafiz Bin Wan Idris.|