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MyTrippo Online Travel Agency seeking RM800K growth fund

MyTrippo Online Travel Agency seeking RM800K growth fund

Project Cost: RM1,000,000

Amount Invested : RM200,000

Amount Required : RM800,000

Knowledge / Experience Required:
general management
strategy
finance
production
sale & marketing
internationalisation
other (E COMMERCE)

Proposed Investor’s Role:
as mentor
as consultant

Industry:
informatics / multimedia
tourism / hospitality

Company Current Status: Growth

EXECUTIVE SUMMARY:

Company History:

MyTrippo is an Online Travel Agency(OTA) founded by Simon Tan & Kevin Raj in the year 2014 that aims to be Malaysia’s best online hotel booking website for hotel stays around the Asia. We both have a passion for business and travel, hence we decided it was time we created something travellers can enjoy, which was hotel deals that are truly hard to find out there.

Product / Service Description:

We’ve developed a customized site that’s easy and user friendly for anyone to use with safe payment methods. It took about a year to complete product development and have engaged with hotel partners to sell their inventory of rooms. Our niche is targeting the most traveled to destinations such as e.g Bangkok, Jakarta, Singapore etc. We offer more value added services with each booking for our customers.

Business Opportunity:

We realised that customers are unable to find really good hotel deals due to the main players and their oligopoly control of the hotel rates such as Priceline, Agoda, Expedia etc. Finding good hotel deals requires a lot of online searching and with all the big players in the market regulating the price its hardly impossible for customers to find really good deals. At the same time, customers nowadays are always cautious in spending too much on hotel stays. As a result, many hotels too are forced to follow the prices regulated by these big market players. Lets use Thailand, Bangkok as an example based at reported statistics,on average there are 25 million travellers who use travel to Bangkok alone, of which 3 million travellers are from Malaysia. The market commands huge demand for better hotel deals and eager travellers always awaiting to grab them at first sight. So yes, MyTrippo intends to to capture 1-3% of this 3 million travellers, which is estimated to equate to about 30,000 travellers at a minimum from Malaysia alone.

Revenue Model:

MyTrippo derives revenue from each payment transaction it processes. Customers can book/pay via iPay88 or PayPal payment merchants, but hotel merchants pay between 15% and 18%, depending on the contract’s value at the time of negotiation. Each transaction is subject to a minimum transaction fee of 2%-3% from payment merchant. This is a comparable transaction cost to that of a single booking completed. Based on these charges, MyTrippo expects to drive between RM350 and RM450 per booking based on an estimated volume of 6000 transactions by 2016.

Management Team:

Simon Tan, Founder: Simon is the founder and partner of MyTrippo. He oversees the financial management and strategy of the company, and is dedicated to building a portfolio of quality grade hotels to keep MyTrippo at the forefront of the industry. He received a degree in Business Administration from SEGI University and held several executive positions in the banking sector and property sector before becoming a co-founder at Mytrippo.

Kevin Raj, Co-Founder:

Kevin is the co-founder partner of Mytrippo. He drives the company’s vision, strategy and growth as it provides interesting and unique ways for people to travel with the best deals. He received a degree in Business Administration from HELP College and held several positions in the tourism sector before becoming a co-founder at Mytrippo.

Chong Wai Kit, Design & Marketing : Wai Kit is the Chief Graphic Designer at MyTrippo. He oversees all aspects of website design and marketing campaigns. He is very well versed in his field continues to deliver quality work for our campaigns via social media. He also helps create Flash Sale campaigns and works closely with our hotel merchants. He is also in charge of our SEM campaign ads. He received a Degree in Design in SEGI University.

Yap Goj Jeng, IT & Vendor Management: Goj Jeng’s duties is to oversee all IT related matters related to the site. He manages and handles the C-Panel system and monitors the website’s analytics. He also assist with vendors for upload of assets and gives a detailed weekly report on asset management. He received a Degree in Information Technology from SEGI University.

Current Status:

MyTrippo is now at the phase of bringing product to market phase. We have completed a year’s worth of work on the website’s development phase. Now we intend to move into the markets with SEO & SEM based marketing to grab market share. Investment to date is at around RM200,000 by the two founders through raising of funds personally. We have not yet launched product to market as this would be the second phase,and which is why we are seeking interested partners who would like to work with MyTrippo as we are looking at launching Marketing efforts soon. Please note that revenue & profit is based on forecast on relevant research conducted*

Funding Milestone:

MyTrippo is currently seeking up to RM800K in funding. These funds will be carefully used to finance the further development and, creation of our SEO marketing budget to drive hotel merchant inventory and customer adoption in. At the conclusion of these activities, the company expects to in a position to begin processing transactions by 2016Q1.

Business Valuation:

We are willing to allocate 40% equity to the new investors for the investment of RM800,000.This is derived based on equal investment by both parties. At present, our equity is RM400,000. We will be increasing this to RM 1.2 million in the next weeks. With the new investor contribution of RM800,000, the new equity will be RM2million. RM800,000/RM2,000,000 will translate to 40%.

Expected Return On Investment:

If Investors buy 800,000 shares of MyTrippo for RM1 per share, your investment cost is RM800,000.
ROI Calculation:

(Invested Sum) : RM800,000
(Profit 2nd Year): RM2,634,019.75 x 40%(Equity) = RM1,053,607.90
: RM1,053,607.90 – 800,000 = RM253,607
: RM253,607 / 800,000×100% = 31% Return

(Invested Sum) : RM800,000
(Profit 3rd Year): RM5,159,019 x 40%(Equity) = RM2,063,607.90
: RM2,063,607.90 – 800,000 = RM1,263,607.90
: RM1,263,607 / 800,000×100%= 157% Return

(Invested Sum) : RM800,000
(Profit 4th Year): RM10,434,019.75 x 40%(Equity) = RM4,173,607.90
: RM4,173,607.90 – 800,000 = RM3,373,607.90
: RM3,373,607.90 / 800,000×100% = 421% Return

*For interested investors a comprehensive detailed Excel Worksheet calculation will be given. All revenue statistics are based as per real calculation as per SEM/SEO marketing efforts, to show data.

Investment Risk and Mitigation:

New Online Travel Agencies(OTA’s) often make one of two mistakes: they are either unprepared or under prepared for launching. Initial poor product discourages customers from returning. Many OTA’s spend all of their efforts at pre-launches and are unable to maintain the quality customers expect on return visits, decreasing word-of-mouth advertising and leading to poor revenues. MyTrippo will be as prepared as it can possibly be with a strong SEO/SEM team, increasing hotel inventory within the first 3 months. Initial costs will be planned accordingly and kept to a minimum. The company recognizes the importance of its image, first-time impressions and top notch carefully planned deals in order to satisfy the bottom line. Because our products are new to the general consumer as of now, which is why marketing activities are vitally important. We plan on implementing several marketing strategies as outlined in the marketing section of this summary. To establish product and brand awareness, we will be giving deals that are insanely impossible to find out there to encourage first timers to try our products. Although we have great deals, building a loyal customer base will take time. We realize that marketing efforts will be reflected in term of sales and bookings and word-of-mouth advertising will be paramount to our success.

Exit Strategies:

The owners of MyTrippo will exit this endeavor after they have created a flourishing business that could be sold for a substantial profit and/or sold to competitor OTA’s. It is the owners intention to run this business until they are ready to retire or have decided to sell the business and start another.The success of the business will be monitored monthly in the first year and quarterly in subsequent years. The owners will keep evaluating the state of the business, and make adjustments when possible to keep the business running for as long as we can till either decides to retire or sell.

CONTACT PERSON

Tan Weng Nam

Company Name: Travel Exposure Sdn Bhd
Postal Address : No23, Jalan PJU 8/12C, The Rafflesia Damansara Perdana
State : Petaling Jaya
Post Code : 47820
Country : Malaysia
Telephone : 0167789568
Website : www.mytrippo.com