Automotive Business in Russia is Seeking Start-up Investment

Opportunity Snapshot

  • Country: Russia Russia
  • Industry: Internet, eBusiness
  • Stage: Seed
  • Investment size: $5,000,000 / min. $5,000,000
  • Type of investment: Debt
Motor Tyre

Investment Opportunity

An entrepreneur on Merar is looking for capital, to fund a website dealing with automotive businesses in Russia, U.S. and Europe.

The purpose of the project is to create an international automotive site, which will be advertised to all companies engaged in business related to cars, automakers, car, tuning shop, car dealers, auto parts stores. The company's website will be able to share experiences, ideas and goods. In addition, companies can show their work to promote their products or services through the website.

They will be able to exhibit their cars, tuning shop and car repair their services, and show their work in the photo, auto parts stores will be able to put all of its range. All companies will have their own page where they can run their blog talking about any promotions, new services, or to show the work done. Additionally, an opportunity to advertise through the website will be given to all the companies, as well as targeting between users.

In addition to providing a platform for companies, the site will be useful to all car owners from Russia, U.S. and Europe. The site will be filled with plenty of content such as news of the automotive world, the forum where everyone can discuss anything useful information from professionals, test drives, reports from events dedicated to cars, announcements of upcoming events etc.

The companies that will be placed on our website, will be given a personal page where they can place their logo and information, news feed, photo album and blog company, in which they will be able to describe the work done. The same company will be provided with a banner that will be targeted (by region) to show the visitor of the website, i.e. when viewing a car at the same time it will be shown banner car service or tuning shop that specializes in these cars, or a car wash in the region. It will also create a company, which will specialize in importing cars to order in Russia, from the United States and Europe.

Competitive Advantage

At the moment there are no such websites. There is only the possibility of repeating the websites separately. These sites have low traffic and low popularity.

Rationale for the deal

• Providing multiple services at a certain price.
• Ability to find partners in other countries.

Use of financing

• Initial investment required for the project: $ 5,000,000.
• $300,000 for site development.
Project costs:
• $45,000 for the rental of office premises with an area of 320 sq.m. for six months.
• $85,000 for the salary managers, moderators and designers for six months.
After the start of operation:
• $2 million on advertising in social networks, automotive websites, automotive communities and clubs. Creation of commercials for television and the Internet. Radio advertising, sponsorship for various automotive events.
• $80,000 equipment.
• $300,000 for the shipping costs and delivery vehicles.
• $2,190,000 for contingencies

Opportunity for the investor

Forecasts for returns:
• For the first month, the site is planned to attract 1,000 organizations. With a monthly cost of service at $ 35 revenue of $ 35,000 should be expected.
• $ 17,650 will go to pay wages.
• $ 14,000 for the further promotion of the site.
• All of the above apply only to the site.
• Prediction of profitability of import cars
• In the first month of the company's plans to import 10 cars. The yield from each car is from $ 1500 to $ 2345. Based on these amounts, the outlook for profitability in the first month will be $ 20,300
• $ 10,000 salary employees.
• $ 10,000 for the further advancement of the company.
• The amounts that remain on the promotion of the site and include the rental office, the Office of the purchase, payment and Internet telephony.
• The payback period of the project: 24-30 months.

(cc) Image courtesy by Akira Asakra

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