Our first offering is an innovative Small Kitchen Appliance that automates one of the most fundamental activities performed in every kitchen – scrubbing & cleaning!
Skadu, a hand-held electric scrubber that helps people to scrub various kinds of surfaces such as but not limited to kitchen cook-tops, sink, oven grills, bbq pits, utensils etc.. with ease and comfort. It’s multi-functional & ships with 4 attachments, its rechargeable battery lasts for 90 minutes on a full charge.
Currently we have built a working prototype and have vetted the contract manufacturer for tooling and manufacturing. We also have locked in a European and American supply chain company to carry out last mile deliveries for our online sales and are in talks with Ambiente and CES for trade show booth space.
The total market for small kitchen and home appliances in EU & North America is close to USD 37 Billion, Our first product is projected to reach a gross revenue of USD 46 million in the first 3 years and we aim to go north of USD 300 Million with our following innovations in this space.
Problem or Opportunity
Problem: Physical effort, time, skin damage and no unified solution in the process of scrubbing/cleaning the kitchen are which includes but not limited to cook-tops, oven grills, kitchen tiles, sink, utensils etc.
Solution (product or service)
Skadu, a hand-held electric scrubber that helps people to scrub various kinds of surfaces such as kitchen cook-tops, sink, tiles, oven grills, BBQ pits, utensils, bottles, glasses etc.. with ease and comfort. It’s multi-functional & ships with 4 attachments, its rechargeable battery lasts for 90 minutes on a full charge.
Only one direct competitor which is Black & Decker, we have surpassed them with a far superior product in terms of functionality, engineering and design. The other competitors are the scrubbing pads industry with companies such as 3M (scotch brite) & Dr. Browns.
Advantages or differentiators
We have a innovated a multi-movement attachment system that allows us to scrub surfaces in opposite directions and creating further dynamic movement to ensure effective and efficient scrubbing and cleaning. We have product that is faster, more efficient in terms of scrubbing power and battery, it is rechargeable and multi-functional with a world of possibilities in terms of attachments. Not to mention that Skadu looks far superior in terms of design and is much more ergonomically stable than its competitors.
Currently we are setting out to raise USD 650k as a seed investment to start our venture which will go towards funding our capex, marketing and advertising budgets, monthly costs for over 12 months as well as inventory of 10,000 units of Skadu and it’s auxiliary consumables.
Business model is to sell our appliance and then lock the consumers in with consumables. The two sales channels are as follows:
Online Sales Channels: With an increasingly growing e-commerce industry, we intend to channel our products into the market via our website and other partner retail channels such as Amazon & Otto. 47% of small kitchen & home appliances were sold online in Europe & North America and is on a consistent growth path. Our team has a laser focus on the online segment with our core-team members dedicated to developing great online content which is a key driver for online marketing and sales.
Offline Retail Channels: We will be participating in trade shows such as Ambiente & CES etc. across Europe and North America to reach out to retail distribution channels such as Target & Media Mart.
Targeting mature markets such as Germany allows us to work in a well-defined supply chain and meet consumer needs with great efficiency and establish a European brand presence to help propel the brand into future markets. The rest of Western Europe and North America to be launched in phases, with revenues said to grow at a CAGR of 2.7% these markets are the most promising in driving sales of innovative products. An increasingly growing Indian market is also on the charts for the Hyper Lychee team, already having a base presence in the country we will be targeting the markets of India in the subsequent phases.
Money will be spent on
Capex (excluding pre-operative expenses) 1,10,000
Pre-operative expenses (excluding pre-operative promoters' remuneration) 1,18,100
First consignment of Skadu (10000 units) 2,17,500
First consignment of Skadu - Scrub pads 7,200
First consignment of Skadu- Bottle brush 9,000
First consignment of Skadu - Metal scourer 4,375
Working capital funds (excluding post-operations promoters' remuneration) 2,05,000
Offer for investor
We are looking to dilute 15~20% in equity and will subsequently facilitate investor exits when we raise the next round of funds for our future innovations and scale.
Risk: Currently, Hyper Lychee plans to procure all its products from a single vendor in China. There is a risk that he may not be fulfil commitments
Mitigation Factor: 3 different vendors have been identified and kept on stand by in case of any non-fulfilment or breach of contract by the current vendor. All the three vendors have capabilities to manufacturer Skadu products. One of whom we have set up a strong vetting process to ensure we have the right supplier for the job and we have conducted the same to shortlist 3 other.
Risk: Currently, Skadu is one of its kind product globally, But, chances are that in future, seeing the success, it may be tried to be replicated by new players in the market.
Mitigation Factor: Hyper Lychee sets itself apart by innovating and designing products of the future. Their intellectual property rights safeguard them in mature markets from imitation and their constantly evolving design & engineering ensures that they have an edge over potential competition.
Risk: As Hyper Lychee is into Online & Offline sales; it is imperative that it maintains a high level of inventory. There is a possibility of obsolescence or destruction or any other untoward incident causing financial loss.
Mitigation Factor: Hyper Lychee has a process wherein optimum level, neither low nor high, levels of inventory and it shall be monitored on a daily basis. Hence, the risk of obsolescence does not arise. Also, inventory insurance is something that Hyper Lychee is planning to obtain which shall mitigate the other risks as well.
Server bandwidth risk
Risk: As the sales mode shall also be Online and through its own portal, Hyper Lychee runs a risk of server down time and may affect its sales and consumer service quality
Mitigation Factor: Hyper Lychee has put in place a state-of-the-art infrastructure in place which includes:
• High availability options: AWS has option of separate options DB, static files , and dynamic files.
• Auto-scaling features: If will auto scale when there will be spike in visitors on any given time.
• Automation in backups, deployments, databases: Inbuilt functions of backups.
• Performance & reliability: Servers are reliable for uptime as they have multi backup.
• Pay-per-use model: Low features can be selected and if there is spike in visitors, it shall auto upgrade.
Incubation/Acceleration programs accomplishment
Won the competition and other awards
We have filed for provisional patents and are due to file final patents by December.