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Looking for the seed fund to proceed for operations

India, Karnataka
Market: Internet and IT, Logistics and warehouses, Another, Artificial Intelligence
Stage of the project: Prototype or product is ready

Date of last change: 11/14/2017
Min investment
$  10.000
0
Total required
$ 173.000
Rating
equalizer 288 из 1000
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Idea

Hi All,

Silksbazaar.com is a niche hybrid ecommerce marketplace, which caters all over the world and mandates to sell only pure silk and pure silk blended products.
We are not a common competing company; it has its own deliverable towards the market of $7+ billon in India and $50+ billon worldwide..

Current Status

We are currently finished out prototype stage and we are in pre-operational stage.

Market

The Global Silk production is 2,02,072 (In Metric Tons). Where china is the largest producer of silk, which accounts 1,70,000 (metric tons) and second largest producer is India, which accounts 28,523 (metric tons), and growing 10%-15% YOY globally.
• While coming to India, it has 4 type of silk, Mulberry silk, Muga silk, Eri
silk and tussar silk, where mulberry silk holds 90% of the Indian silk
contribution. India imports around 10,000 metric tons from china every
year, which is accountable and there are more is happening unaccountably.
• 85% of the products are used domestically and rests 15% are exported to
other countries. Todays average raw silk price per KG is 3,000 INR.
The global total market size of pure silk finished goods or products is
$50+ Billion (INR 3.25 Lakhs crores); and India’s share will be minimum
$7+ Billion (INR 45.5 thousand crores).
1)With continued growth in the industry, opportunities to serve the Indian
residents in domestic and international will increase. The company will sell to
individuals mainly women and for marriages and other occasions like
festivals, housewarming, many more for all good prospects.
2)For your information, approximately, in India 1 crore marriages (excluded remarriages) are happening every year. if we consider 40% of Indian marriages
who spends averagely INR1,00,000 (includes both groom and bride family) on
silk products, which account an impressive numbers. This is just for
marriages, if we consider for the casual sarees, dresses and other products, it
will reach more than expected.
E-Commerce in India is still nurturing comparing to other countries, but the
opportunities are immense in all the niche/vertical categories.

Problem or Opportunity

• For Customers:
1. Authenticity of pure silk products.
2. MRP or Price Tag.
3. Handloom Vs. Powerloom.
4. Traveling to other place for the only purpose.
5. Touch, Feel & Buy experience through online shopping.
6. More varieties and latest designs.
7. Customer services and experience.
• For Sellers/Weavers:
1. Middleman.
2. No access to the larger market.
3. Inadequate fund.
4. Credit tenure.
5. Support.

Solution (product or service)

1) Our Solution is to enhance quality of life for all as we age. We lead positive
social change and deliver value to customers through information, advocacy
(Support) and service and make pure silk from Expensive to Affordable.
2) Silksbazaar will use its strategy, employees, and systems to provide each
customer with a seamless three-part customer experience - service product
(Silksbazaar.com), service environment (Eco-friendly, Natural & Authentic),
and service delivery (knowing our customer, TF&B) -- each part of which will
meet or exceed our customer’s expectations.
Some of few key benefits and features here.
• Double Inspection
• Touch, Feel & Buy feature
• Authenticity software
• Women Empowerment Program - WEP
• One stop shop for all authentic pure silk and pure silk blended products

Competitors

A healthy competition between the companies makes more viable and significant growth in the business.
Even though we are in such a niche, we have few small and big competitors.
• Direct Competitors
Competitors
1) Myntra.com (Acquired by
Flipkart)
*We have, they don't
Domain experts, niche, only
deals with pure silk and pure
silk blended products.
*They have, we don't
Good advertising and
marketing campaigns on
TV, internet and print,
technology.

Amazon.com
*We have, they don't
Niche, Authentic, double
inspection, skilled employees
*They have, we don't
Well-funded, high-end
technology, Advertising.

• Indirect Competitors
Competitors
Sudarshan Silks
*We have, they don't
Technology, Specialized
products and categories,
best customer services,
more varieties and
designs.
*They have, we don't
Traditional customers,
physical stores, Good
advertising.
Chennai Silks
*We have, they don't
Technology, Marketplace,
more categories, better
customer centric.
*They have, we don't
Traditional customers,
physical stores, Good
advertising.

Advantages or differentiators

Silksbazaar.com has a valuable inventory of strengths that would help it to be
Successful. These strengths include:
a) Excellent service through convenient processes.
b) International presence.
c) Expertise and in-house mentors.
d) Transparent.
e) Authenticity.
f) 24/7 operations.
g) Unique.

According to our own market survey, we distinguish ourselves from them by
providing better quality services and products at reasonable prices, delivering to the customer door, pre-sales services (TF&B) and post-sales services (tailoring. etc).
By always focusing on meeting or exceeding our customer’s needs, wants and
expectations, we will be able to build customer loyalty and word-of-mouth sales that many of our competitors are lacking.

Finance

The increasing GMV forecast suggests an important potential growth. Our projected GMV are actually net GMV, which consist of the gross proceeds from sales of merchandise -- gross sales -- less returns and allowances.
1) The total projected average monthly GMV (Gross merchandise volume) are
approximately 3.3 Cr ($507,692). Considering an average ticket price of 5,000 ($77) per order, Silksbazaar.com would need to sell on average 220 orders each day. (INR 3.3 Cr average monthly GMV / INR 5,000 per order / 30 business days per month).
2) As the silk market in India is majorly unorganized and unstructured, there are
different categories compromises with different varieties of products in India.
One of the major usages of silk products is in marriage industries.
• In-depth analysis of marriages in India – approximately 1 cr marriages are
happening in India, lets take 40% (40 Lakhs) of them who spends averagely
INR 1,00,000($1,538) per marriage (includes both bride side and groom side),
which results to 40,000 Cr ($6.1 Billion).
• The above illustration will explain, how we can meet our objective and
company goals to achieve the numbers, which we have projected.
The estimated total market in India is 45.5 hundred crores ($7+ Billion) per year, and our target market share would be .43 percent (198 Cr / 45.5 hundred Cr = .0043). We believe this target market share to be reasonable and achievable.

Business model

As silksbazaar’s business model is the marketplace in ecommerce, the revenue of the business will be calculated on the GMV (Gross merchandise volume - is a term used in online retailing to indicate a total sales dollar value for merchandise sold through a particular marketplace over a certain time frame.)
*The total sales from the marketplace platform, which is provided to sellers to sell the products.
Here, the total sales will play vital role on the revenue generation for silksbazaar.com.
The sale happens via channels as listed below & For the entire amount of sale
achieved by Silksbazaar for particular seller, Silksbazaar will charge flat 20
percentage (%) cut on the total sale amount, excluding GST.
a) Website Sale.
b) Web-App on Mobile / Tablets.
c) Mobile App (Android or iOS or others).
d) Direct via Tele Sales, what’s app (Customer calling or texting and Placing
orders).
e) Via Affiliate networks (Bloggers, Coupon Websites, Review Websites etc.)
f) Social Buy.
g) Pre-sales service sale (Touch, Feel & Buy Experience).

By this entire mode, we will generate GMV and get the portion of the revenue for the company as follows:
a) Marketplace Fee – Flat 20 %
b) Touch, Feel and Buy Experience – between 25%-30% (Yet to decide).

Money will be spent on

We are more cautions on spend on our requirement to startup the business in an effective manner.
We use fund on the following:
1 Technology 30%
2 Team Formation 15%
3 Marketing 30%
4 Office Setup 10%
5 Operation reserve (working capital) 15%
Total 100%

Offer for investor

We are seeking INR 1.1 Cr ($173,000) through equity investment.
by diluting 20% of the company's equity.

Risks

Strengths are valuable, but it is useful to realize the weaknesses. We have identified some of our weaknesses:
a) Start-up challenges.
b) Limited operating capacity during peak sales periods.
c) Numbers of potential customers who can buy through online is still not
enough.
d) Limited financial resources.
e) Intense competition means limited market share growth.

Threats the Silksbazaar.com should be aware of include:
a) Changes in the business environment that might reduce our sales.
b) Due to fraud/dishonest by other online business will damage customer’s
confidence and faith in the entire enterprise of Internet market.
c) Likely entry of new competitors.
d) Legal and regulatory changes.
e) Global competitors like Amazon slowly making its foray.

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