1) Bringing offline Merchants to online platform
2) Market to provide those Merchants with Customers
3) Provide cashback to customers on services consumed on those partnered Merchants from the commission earned from them.
The business is already in operation and we are seeing a measurable success in it. From India standpoint, there is a great potential to grow, especially Tier-II cities which are currently least focused but have great strength and striving for it. GetUmoney has been successfully onboarding Merchants in Tier-II cities and getting great response from them.
The Market Size and Potential
1) 31% of smartphone users transact online
2) Around 150,000 Smartphones are being added daily!
3) Every user looks for lucrative deals or cashback offers
4) Tier-II cities are least focused, but are having great potential to come online
5) Merchants look for a platform for wider visibility to users.
6) Finally, There will be a massive appetite for all-in-one Apps in next few years
Problem or Opportunity
The Market Problem
1) Smartphone users in India uninstall nearly 70% of apps soon after they download them due to mobile space or mobile data for regular updates etc.
2) Users need to look for multiple apps to cater their needs which impacts their life i.e. Shopping, Recharge, Gym, Health Checkups, Restaurants, Groceries, Food Delivery, Beauty Salon, Boutique.
3) Even in Today’s digital time, the offline merchants have their own dominance in India and is looking for support to be online to reach maximum crowd for their offline business, specially for Tier-II cities which are least focused so far.
Solution (product or service)
1) With GetUmoney where all features will be available in one APP, users can save their mobile space and upto 700MB of their mobile data by not installing multiple apps and regularly updating them.
2) With all merchants in one APP, it gives users flexibility to compare and choose merchant of their choice for a particular transactions and avoid the hassles to look at multiple APPs for it.
3) It is giving a platform for offline merchants to come online by offering their services and deals to larger crowd. Primarily Tier-II cities which has a huge potential market and need connect to online crowd.
1) Tapzo - having business model of promotion and cashback with annual revenue of $4.5 million
2) Crownit - having business model of promotion and rewards with annual revenue of $1.2 million
Advantages or differentiators
1. The early movers are scaling well in revenues. They will be our primary competition in luring customers to use the APP.
2. We will win because :-
a) Besides existing segments, our motive is wider to include other major segments which are not there on any current platform i.e. Diagnostic Labs, Food Retails etc.
b) We are primarily targeting Tier-II cities which are least focused on currently APP platform.
c) We benefit users by transferring their cashback as real cash to them.
Financial model by assuming minimum numbers are as below. Any increase in user numbers can further add to the revenue.
Description Per Day Per Month
a) SmartPhone users In India (as on 2017) 300+ million
b) Users Transact online 100+ million
c) Assuming number of users using 1 million
d) Assuming Average Minimum 10,000 300,000
e) Average purchase per transaction $30 $9,000,000
f) Average commission per transaction (15%) $4.5
g) Average Total commission $45000 $1,350,000
h) Cashback distributed to users per day (85%) $38250 $1,147,500
i) Total revenues earned $6750 $202,500
Our Business Proposition
1) Is to approach online & offline merchants in different categories and propose that GetUmoney be allowed to market and promote their products and services on its platform – without any cost to them, but with an agreed revenue sharing/margin for each matured customer lead who does transaction with them.
2) Is to approach customers and aware them on the cashback benefits on each of their transaction with partnered merchants in various categories.
Money will be spent on
We are looking for a US$ 3 million investment to cover for 2 years of capex and cash cost which includes Salary, occupancy, Technology infrastructure, Travelling, Marketing, Advertisement, Cashback and Rewards.
Offer for investor
We are proposing anything between 15-20% for this $3 million investment.