Project Title Shop Hubby (Moving traditional offline businesses online without any buying or selling activities, but instead luring walk in customer for the local retail shops in Malaysia)
Current Status Revenue Generating, Pre-Profit
Amount Invested RM400,000.00
Funding Required RM600,001 to RM1,000,000
Description We have a mobile application done developed and will be launching on Google Playstore and Apple Appstore in two weeks. Our vision is to move estimated 100,000 local retail shops (Excluding F&B and Shopping Mall retailers) online. However, we are not e-commerce sites which sell and buy things online, instead we developed location services technology and Big Data to attract ‘walk-in’ customer for the local shops in Malaysia. We believe in the vision of Virtual Real Estate and transform the local businesses in Malaysia to compete with the Shopping Mall and E commerce website online.
Business Opportunity Moving merchant online sounds ordinary and simple, however the target audience of ours is the local merchants in Malaysia who are NOT tech savvy and have vision to move their business online. By integrating all the merchant and unite them in our platform, each of the merchants will save a huge amount of cost in building or joining other online platform. In simple term, local retailers who have individual shops which sells product will need someone to transform and add value to their business moving forward. We are there on the ground convincing door-to-door in every shops to move them online.
Revenue / Business Model We will charge the local merchant a yearly subscription fees (Or we called it Virtual Rent) which is lower then RM1k per year. They will then get a personalized shop profile parking in our platform. We will then own the rights to promote them and obtaining the data of the shops through various #walkandshop campaign. We are talking about 100,000 shops who pay us RM1k for a whole year fees. The essence of this business model is about economies of scale of the local merchant and the biggest asset is the value of the data which we are going to gathered in 6-12 months time.
Management Team Founder of the company is a young chap who graduated from University of Reading (Top 1 Real Estate Uni in UK) with a BSc in Real Estate. Co-founder is specialized in Finance and Business management who are a graduate from UK as well. Founder has working experience in big corporate like JLL (NYSE:JLL Top 10 Real Estate Firm Global) and Public Bank Malaysia. He is specialized in real estate industry especially the retail market around the world (in terms of enhancing value by innovative ways). Besides, the company has onboard one of the top international IT Firm to develop this app and they are one of the company shareholders as well. Shop Hubby team have a number of mentors around in Malaysia who are experience in startup industry and have contributed to the milestone we achieved today.
Company Background We started our mother company ‘Virtual Real Estate Berhad’ 12 months ago and have raised both founding and co-founder round. Shop Hubby Sdn Berhad is a full subsidiary of Virtual Real Estate Berhad and has been in operation since February 2018. We have now 100 local merchants collaborating with us in Klang Valley and have a traction of 20 merchants signed up with us prior to our launching. Moving forward our conservative projection of our break even date will be Q4 2019.
Funding Milestone RM50k (Founding Round), RM350k (Co founding round), Current round 700k (Seed Funding)
% Equity Allocation 10
Expected ROI Varies
Risks and Mitigation Startup risk includes the competency and consistency of management team. Being a young startup with a group of young chaps might be viewed as a ultimate risk of investors. However, at this round we could prove that we are able to achieve extraordinary milestones within the past 12 months period of time. Moving forward, the rapid grow of the merchant base will require a bigger team to deliver the after sales service. In other word, bigger team requires experience team of management. We are planning to recruit one or two experience executive members to overlook and ensure the team is able to deliver the KPI as planned. The other risk factor which we are worrying about is the expectation of merchants on our early phase mobile application and website. In terms of number of downloads is something we could not control, however we have a full plan of ‘cost effective’ marketing campaign which we think some other startup will not dare to approach. Example is our local shopping bus tour.
Exit Strategies We foresee a IPO plan to LEAP board Malaysia within 3-5 years plan from now. Acquisition and merge plan is temporarily out of the picture even though at this phase, a lot of emerge company is asking us to acquire. We uphold the trust of our existing and future shareholder on the long term vision of this company. Being the platform of third best shopping option is something we wish to achieve. (1st place is online e commerce website, 2nd place is shopping mall, 3rd place will be Shop Hubby on Local Retail Shopping)
Company Name Shop Hubby Sdn Bhd
Website/Facebook https://www.facebook.com/Shophubby/
Business Address Sandbox Co Working Space, Sri Petaling
Contact Person KJ Chow