The project is about a Multi Brand Multi Category Shopping Portal that started in Sep 2009 and is live since April 2010. Investment Expected: Rs. 80 Lakhs.
The Online Shopping Portal accessible from PC, Mac and Mobile. To consumers, it is a tool to research and shop for products. To brands and manufacturers, it is a quick and affordable platform to make their products visible on worldwide web. It has 275,000 SKU’s for sale online, 3000 unique visitors per day on average and 12000 unique Pageviews. We are at Revenue Generation Stage and offer to interest investors equity against capital.
The company is a privately-held, 7 person (3 managers and 4 employees) start-up. We have offices in Delhi and Bangalore
The project started in Sep 2009 and is live since April 2010.
The portal in numbers:
• 275,000 products currently live on website
• 90,000 unique visitors and 316,000 unique pageviews per month on average
• 328,060 shoppers currently registered on the portal
• 79% New Visitors and 21% are Return Visitors
• 93% of the Visitors are from India, 7% from the Rest of the world
• 3.05 Minutes Average Time on Site
• 28,00,000 Search Impressions
• Order Return Rate: None
• Order Exchange rate: 0.1%
• Customer Complaints: Negligible
• 61% Search Engine Traffic, 15% Referral Traffic, 24% Direct Traffic
• 1,80,000 Average Monthly Product Searches on the site
Currently we are at Full product stage, more particularly, at Revenue generation stage
Our product is a multi-brand retail portal offering products across multiple categories:
• Movies, Music, Games
• Home Appliances
• Home and Décor
• Health & Beauty
The company's goals over the next two years are:
•Achieve a turnover of Rs. 50 crore in FY 2013-2014.
•Maintain margins of 10% average on entire product range.
•Develop even more strategic alliances with manufacturers, distributors and service providers nationally as well as internationally.
In order to achieve these goals, Egully.com needs to focus on following key areas:
•Cost-Effective marketing and targeting of online consumers within the larger Indian online community.
•Successfully position ourselves as an online retail store with best customer experience.
•Communicate the differentiation and quality of our offering through e-mail interaction, interactive media, and online marketing.
•Develop a repeat-business base of loyal customers in order to create additional sales.
Egully.com's total capital requirement is approximately Rs. 80 Lakhs. Start-up capital of Rs. 26 Lakhs was financed by Founders’ personal investment.
Key Differentiation plan – I
Applying the “MarketPlace” model (Strategy to focus on our core categories and offer variety via our marketplace partners)as our revenue accelerator. We plan to:
• Get good quality third party vendors (3P): 15 already signed up in last few months. We want to have some good vendors like FnP, Ghasitarams Sweets, Offbeat Apparels, Little India Gifts, Clifton Apparels etc.
• Bring Small Brands and manufacturers under one B2C platform (these players find it difficult to get traffic and transactions through their niche sites)
• Achieve more than 25% margins on most market place products. Currently around 45% of our top line is from 3P products.
The MarketPlace model will add to the Long Tail of Product Catalogue
Benefits we have experienced with our 3P:
• A long tail of products to our catalogue
• Inventory management of long tail of products is taken care by 3P partners
Motivation - Marketplace Model
The strategy just makes complete sense:
• Companies are spending huge money to build a brand and bring consumers to their website.
• Consumers love selection
• A 'bad' consumer experience is when they come to company’s website and don't find what they are looking for.
• Even the mega players can only manage limited selection
• Long-tail selection can be painful and expensive (eats into warehouse space)
• Brands need to focus on their core business (e.g. computers or top 100 sellers etc.)
• Zero Inventory Cost for long tail items.
• Zero Inventory Risk on Marketplace products.
• Zero Logistics and procurement Cost.
• Ability to add good Brands online on portal with no middlemen
The solution - partnering with top/mid/small manufacturers/brands that bring some unique product lines to your e-commerce site.
Key Differentiation plan – II
Delve into the online FMCG space in India
We have made arrangements with few leading Retails chains in India
• The distribution plans for this will be in two modes
• The light weight non-perishable products will be shipped PAN India
• The bulky and perishable products will be done in select few cities (Starting from Delhi followed by Bangalore and Jaipur)
• This space is relatively untapped in India.
• The logistics arrangement for the same will act as a good compliment for our existing business line
A turnover of Rs. 14 lakhs was achieved in FY 2010-11 as company was in business development stage. FY 2011-12 turnover has been Rs. 40 lakhs. An opportunity for our platform exists because the ecommerce retail industry is growing at 40% annually in India and is expected to grow at even a higher rate in next 2-3 years.
Further, there are very few online retail portals providing a complete range of products across different categories. Out platform is poised to take advantage of this opportunity and growth in online retail in India with an experienced staff, excellent locations, and effective management and marketing.
• Major operational expenditures
• Employee cost
• Office rentals
• Marketing cost (variable cost)
• Advertising Cost
• Server cost
• Planned expenditure with future INVESTMENT
• Hiring Employees (Programmers, Data entry, Business Development, Sales, Marketing)
• Marketing expenditures
• In-house inventory management
Investment Expected: Rs. 80 Lakhs
• Our Offer : Equity against investment and advisor positions on Egully Management Board
• Major chunk of investment will be used to boost sales and traffic for next round of funding
• Some funding will go into staff and other resources (details on previous page)
Second Round funding (Exit Options)
• With marketing efforts built by funding, valuation is expected to rise.
• In Second series of funding – Partial Liquidation or full liquidation
• Expected Turnover in FY 2013-14 : Rs. 50 Crore