WhyQ Pitch Deck

Transcript

1. BRINGING SINGAPORE’S FAVOURITE HAWKER FOOD TO YOU VARUN SARAF, CO-FOUNDER 9189 7665 RISHABH SINGHVI, CO-FOUNDER 9026 8776 WWW.WHYQ.SG 1
2. 2 The Problem Hawker food is neglected by delivery services as it is traditionally viewed as something that can only be consumed at hawker centres Long queues and limited seating capacities make for an overall unpleasant eating experience at hawker centres Existing delivery services target mid-high tier restaurants, and are expensive due to high cost of food, high delivery fees & high order minimums
3. 3 The Solution WhyQ brings low-cost and delicious hawker food to individual customers, corporations and events WhyQ consolidates orders and delivers them in batches; removing order minimums and keeping delivery fees low WhyQ uses a batch-aggregation model with hyperlocal deliveries, resulting in quick delivery turnaround time and requires fewer couriers
4. 4 Secret Sauce SORTING LOCATION HAWKER CENTRE (HC) DELIVERY LOCATION (DL) Courier 1 Courier 2 Courier 3 HC-1 HC-2 HC-3 Courier 3 Courier 2 Courier 1 DL-1 DL-2 DL-3 Delivery batch aggregation model, results in a quicker order turnaround time and requires fewer delivery couriers
5. 5 Target Markets Bringing Singapore’s famous hawker industry to a large audience through individual orders, corporate bulk orders and special events Special Events Special events to our property builder partners CapitaLand, Ascendas and JTC Storefronts at carnivals such as the MBS Carnival Stalls at music festivals such as Laneway Expected to contribute 20% of our total volumes Corporate Bulk Orders Cater to corporate clients for their company events, team events and trainings Corporate partners include ICAP, McKinsey, Credit Suisse, Standard Chartered, DBS, JPMorgan, Carousell Contributes for 20% of our total volume Individual Orders Currently delivering to 5 zones – CBD, Changi, Fusionopolis and Science Park, Jurong Expanding to other business districts and residences island-wide by Dec 2018 Self-Collect model in partnership with DBS to give customers an option to pickup their food from the most popular hawkers without queueing Contributes for 60% of our total volume Expansion to other similar markets in South East Asia from 2019 onward including Bangkok, Hong Kong, Kuala Lumpur, Jakarta and Shanghai
6. 6 Competitors High delivery fee, high minimum order Low delivery fee, Low minimum order Affordable Hawkers Mid-High Tier Restaurants
7. 7 Competitors Yihawker Fastbee WhyQ Delivery Fee $3-$8 $1.50 $1.50 Minimum order $15 $0 $0 Pre-order and Takeaway No No Yes, In partnership with DBS # of partners 300+ < 20 stalls 600+ stalls at multiple hawker centers Delivery Radius Island wide 6 pick-up points 60+ pick-up points Cost of food $7 $5 $5 Time of Collection On Demand Time range with no notification or tracking Scheduled Delivery with GPS Tracking & SMS Notification Pickup Location Doorstep Pickup from centralized location Building Lobby Michelin partners None None 10+ partners Fastbee - Limited selection of hawkers - 6 pick-up points only - Long distance to collection points - No order tracking Yihawker - High Min Order - High delivery fee which increases based on distance
8. 8 Current Statistics 600 Hawker Stalls 15,000 Registered users 650 Meals per day $550,000 Revenue to date $100,000 Revenue per month
9. 9 Business Model Maximize revenue by processing orders in batches Annual Revenue ~30 million in 2020 Net Income ~2 Million in 2019 High frequency and volume Expand to over 2,500 stalls by end 2020 Commission of 10-15% from hawker stalls ($0.5 to $0.75) Low value transactions and fewer delivery couriers Average cost of food $5 20,000+ meals per day delivered by end 2019 Customers pay S$1.5/meal Average cost of food $5
10. 10 Unit Economics Profit per Batch  $12.5 Employee Cost $11.25 A WhyQ batch is the work done by 1 delivery courier in 1 hour. Our average batch size is 15 meals and average transaction size is $7 Promotion Expense $4 Other Cost $2.25 Total Variable Cost  S$17.5 per Batch Hawker Commission ($0.5x15) $7.5 Delivery Fee ($1.5x15) $22.5 Total Fee Charged  S$30 per Batch
11. 11 How Your Investment Helps Expand to deliver food from 2000 hawkers partners island wide Increase customer base to 100,000 by the end of 2018 New Hires Grow our business development team, admin team and customer support team Improve Technology Expand our new in-house development team Develop hawker and rider apps Develop corporate catering website Develop subscription and scheduling model Expansion Expand to business districts and residences island-wide Build-up customer base with new user promotions and referrals Incentivize existing customers with retention promotions Deliver food to a majority of business districts and major residential areas ~60% ~20% ~20%
12. 12 Exit Strategies M & A Sale to a bigger player to help them move into the hawker food market with (a)Our unique and proven batch-based model and (b)A well-established customer, employee and vendor base. TIME FRAME – 2+ years Secondary sale to VCs WhyQ will be approaching VC firms for funds in future rounds. Current investors are given the option to sell their shares at the higher valuation during future rounds. TIME FRAME – 1 to 2 years
13. 13 Strategic Partners Strategic Partners Michelin hawker partners Grab Working with Grab as part of the Grab Hawker Acquisition initiative Ascendas, Capitaland, JTC Working with property builders to expand to new delivery zones and hawker partners Kopitiam Partnership with Kopitiam to deliver from their 70+ food courts starting with Lau Pa Sat and Changi City Point Changi Airport (In Progress): Delivery to 30,000+ staff Michelin Starred Hawker Liao Fan Hong Kong Soya Sauce Chicken Rice & Noodles @ Chinatown Michelin Guide Hawkers: Tian Tian Hainanese Chicken Rice @ Maxwell Food Centre Hong Kee Beef Noodle @ Amoy Street Food Centre Hoo Kee Rice Dumpling @ Amoy Street Food Centre Famous Sungei Road Trishaw (Laksa) @ Hong Lim Food Centre DBS Self-Collect / Takeaway Model On-the-go dynamic ordering of hawker food from popular stalls, to be collected at designated pickup points at hawker centres Marketing Co-sponsoring promotions & referral program to incentivize new & existing users Email, SMS and social media marketing to DBS followers and customers DBS Rewards One of the first partners to be part of the DBS rewards redemption program
14. 14 Key Updates Process Optimization Other Updates Hawker Apps To remotely send orders to hawker partners and communicate via a simple app Rider Apps To facilitate accurate and dynamic order tracking for admins and customers Scheduling & Subscribing To schedule a one-off order for up to 4 weeks in advance or to subscribe to a plan Corporate Bulk Orders 40 corporate partners for breakfast/lunch/dinner events Bio-degradable materials Partnership with Avani to use Bioplastic bags and containers Special Events Setting up store fronts and stalls at street festivals, carnivals, concerts to bring hawker food to a wider audience In the news…
15. 15 Team WhyQ VARUN CEO RISHABH COO MANISH NARENDRA ARJUN ANUSHA Android Lead iOS Lead PHP Lead Head of Customer Experience VIKAS CTO ROOPAL Head of Design
16. 16 Appendix
17. 17 Current Revenue Current Revenue ~100K a month Revenue to Date Forecasted Increase in Last Quarter 52% Monthly Growth Rate in Last Quarter 15% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 January February March April May June July August September October November December January February March 2017 2018 Current Revenue
18. 18 Revenue Forecast January 2019 Operating Breakeven December 2020 ~ Monthly Revenue of 3 Million $0.00 $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.00 January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December 2017 2018 2019 2020 Monthly Revenue Rate vs Expenses Order Cost Employee Cost Marketing Cost Other Revenue Annual Revenue (S$) 2018 – 5.23 Million 2019 – 17.50 Million 2020 – 30.42 Million
19. 19 Burn Rate January 2019 Operating Breakeven and Profit Total Cash Burn until Operating Profit ~ S$ 450,000 -$70,000 -$60,000 -$50,000 -$40,000 -$30,000 -$20,000 -$10,000 $0 $10,000 $20,000 $30,000 January February March April May June July August September October November December January February March April 2018 2019 Burn Rate
20. 20 Why we started WhyQ Neglected market We bring hawker food to individual consumers, corporations, team events, families, university students at offices, residences, carnivals, schools – and give hawker food a new platform to keep Singapore’s globally famous hawker food relevant in today’s times when a plethora of restaurant focused delivery services are taking over the food industry Family run businesses Hawker stalls are mostly small, family run businesses, with a few exceptions. They are unable to market their product and hire delivery vehicles to bring their food to a larger audience. They are also unable to provide a 30-35% commission that many other delivery services require. We bring their food to a much wider audience at a much lower commission % (5% on average) and send them orders before their peak hours begin with minimal use of technology, thereby increasing their revenue without drastically changing their day to day business activities Hawkers of Singapore Both of us Co-founders have enjoyed hawker food throughout our lives. Not just the taste but also the preparation and the way it is cooked with love. Hawker uncles and aunties go through great pains to prepare their food in time for the mad rush hour of lunch daily. They have chosen to be our hawker heroes and its time we give them credit for it – we learnt about this through our #HawkersOfSingapore series, which gave us a real insight into their lives and brought us closer to our hawker partners than we could have imagined.