Pioneering Drone Delivery Services in Malaysia seeking startup fund

Pioneering Drone Delivery Services in Malaysia seeking startup fund

Project Cost: RM1million – RM5million

Amount Invested : RM20,000

Amount Required : RM100k – RM500k

Knowledge / Experience Required: finance, production

Proposed Investor’s Role: as mentor, as consultant

Industry: engineering, manufacturing, consumer goods

Project Stage:start-up

EXECUTIVE SUMMARY:

Company History:

Tharros Enterprise is established by two founders

1) Hazmi Hamizan bin Mohd Zaki
-Pursuing a degree in Business and Management with Enterprise Master of Arts at the University of Heriot Watt, after dropping a scholarship from FGV for MechEng because of his passion for business and confidence that his idea will be a success
-Experience of establishing own company at 16 years old by opening a shop in own school, joined by other students and supported by PKNS
-In possession of knowledge on drones, businesses and management
-Self taught on gold and silver markets at 17, started investing in stock markets at 18, and learned how to set up a business at 20

2)Mohd Zaki bin Mohd Yusuff
-Electrical Engineer with 35 years of knowledge
-Director Spectrum Management, MCMC
-Chairman of Globaltone
-Director of Strategy and Government Affairs at Redtone

Product / Service Description:

Conventional methods of delivery wastes time, energy, effects the environment, and is clearly in need of improvements. The US has already started on developing delivery services by drones with Amazon, Matternet, Google. The Australia has also entered the game with Flirtey. It is time for Malaysia to do the same. But doing it differently.

Tharros Enterprise will research and develop as well as manufacture drones that are capable of delivery. Once these drones are manufactured, we will begin testing stages in Cyberjaya. Now, instead of just one drone to service one company, these drones will be located at a drone tower built at a central location. These drone towers will house the drones, protect the drones from outside environment such as rain, and be powered by solar panels with batteries to store energy below on ground. These drone towers will also be capable of charging and changing the batteries of these drones. The drone tower will not be tall, possibly housing around 10 drones each. Now, businesses such as grocery stores, e-commerce webs such as zalora, can register with us.

And instead of just limiting the services to firms, because the drones are publicly housed, these drones can be used by people to transport an item from one place to another, any time of the day. Battery life is indeed a problem and we want to solve this by creating a drone that can transfer packages from one drone maintaining one area, to another drone at the adjacent area. Much like a cell tower. This will mean battery life of a drone is no longer an issue, making it possible to transport packages at long distances.

Business Opportunity:

Conventional transportation is limited by roads and the vehicle itself. 2/3 of items that are being delivered daily by delivery companies are under 1kg, thus it will be perfect to be carried by drones. Vans need to be serviced and driven by workers. Items could be misplaced, and takes a long time to reach its destination. Roads are another limit to delivery as drones can send aids and supplies to unaccessible areas. Rural areas can now be connected with the supply that they need. We also can reduce our CO2 emission, as drones are battery powered and this energy comes from the sun. Our testing stage will be in Cyberjaya, as this area provides a perfect place for drone testing, as it is small and connected. Malaysia also is the ultimate choice of starting these services, as there are light regulations on drones. I have already met with an office from the DCA office and got the green light to pursue this venture, with little paperwork to be done to get a permit and clearance. From Cyberjaya, we can expand to the Klang Valley, and other major cities such as Penang, Johor Bharu and Kuching. As these drone towers are mainly self supported and viable in size, we will be planning to connect cities in a state together, such as KL and Putrajaya.

It is said that drone delivery services will be the in thing in the next five years. With developments already going through with other companies in other countries, we should do the same. By being the pioneer in Malaysia, our company will have the knowledge and expertise to expand our services and do partnerships with other countries.

Revenue Model:

Each delivery service in an area will be charged with a specific amount, not regarding its weight as long as its below the maximum weight that can be carried. Services used by firms will be charged different from services used by people. The charges will also be different when services require an inter-area delivery, where drones need to send the package to another drone in a different area.

We will also be looking to do projects and be in partnership with the Malaysian government and NGOs for any emergency situations (such as the Sabah earthquake) nor when the government want to create a delivery route to urban, unaccessible areas delivering medical and aid supplies (such as delivering aids to the Rohingnyas when they were stranded at sea near our coast).

Management Team:

As Tharros Enterprise is a new start up established in April, we are still yet to have any management teams. With your funding, we will be looking to hire electrical engineers and software developers/ programmers to help build our company.

Current Status:

The idea stage. We all have to start somewhere. We have already passed the second stage of hiring people, and will soon start with interviewing a selected few consisting of Electrical Engineers and Software Dev/ Programmers to aid us in making this idea a viable product. We have invested with a capital of RM20,000 in Tharros Enterprise, and right now that capital is being used to post job listings.

Funding Milestone:

Your initial pre-seed funds/ investments will be the decision maker of this idea becoming a reality or otherwise. With your initial RM100k-RM500k fund, we will straight away proceed to hire a few workers and machinery equipments such as a 3D printer. We will then research and develop drones that are capable of delivery services, with the help of equipments such as the sensors, nano processor, and quadrino nano flight controller, to be imported. This development will be done in a maximum of 1 year. In that one year as well, we plan to introduce these services to the government and NGOs in an effort to make these services more well known as well as to use technology to help those in need in an emergency situations or to unaccessible areas (This will be a manned testing of the delivery drones). In the next coming years, with different seed funds and investments, we will be testing its services, unmanned location-to-location transport and will be developing the drone tower. Will take a maximum of 2 years. In the start of the 4th years, we will begin operation and location testing in Cyberjaya, being the pioneer city to have a drone delivery service. In the 5th year, we will begin expanding to Putrajaya and the Klang Valley.

Business Valuation:

For the initial funding amount of RM100k-RM500k, we are willing to allocate 5%-10% of equity to investors for believing in our idea and for being a pioneer investor in our company. However, the funding amount and the equity can be negotiated. These terms are discussed and agreed by both me and my co-founder.

Expected Return On Investment:

Taking into consideration the cost and growth prospects of our business, we aim to generate a company with a good revenue and profit as well as a good valuation. With a reasonable pre-seed amount asked, and a reasonably well percentage of equity given, we believed that for early investors the ROI will be ranging from 200% to 500%. Even though we believe this is an undervalued assumption, but we want investors to believe and have confidence in us.

Investment Risk and Mitigation:

As this is a new field of business, it comes with a high risk.

1)Workers might not have the appropriate skills
We will be doing interviews soon, and rest assured that this has a low probability of happening.

2)Change of government policies
There is the danger of government enforcing stricter rules and regulations.

3)Higher costs than expected
Because most items needed to build the drones are imported, there might be the case of a higher cost than expected to build these drones

4)Strong competition from already established companies
Since Google, Amazon, Matternet and Flirtey are already testing their drones, there might be the risk of their company expanding here in Malaysia when they realised the fact that there is light regulations in Malaysia and a strategic place for new technologies.

Exit Strategies:

As we value our investors, and we understand that they will be looking for promising exit opportunities, thus for now we are providing two exits. The first is through trade sales, and the next is by repurchase of shares by our company.

CONTACT PERSON

Hazmi Hamizan bin Mohd Zaki

Company Name: Tharros Enterprise Sdn Bhd
Postal Address : No.8, Symphony Hills, Jalan Schubert 2C,
Persiaran Bestari Symphony Hills
State : Selangor
Post Code : 63000
Country : Malaysia

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1 comment so far

Hazem Posted on2:03 pm - 02/06/2019

Projek nie dh berjaya ke?