Our Investment Opportunities – Project Code Name: “LOLA”

Premium Food for Dogs - Investment Opportunities

100% Healthy & Digital Premium Food For Dogs

Project code name “LOLA”

USD 6.6M sales – 13x growth

Asia

USD 5M Fundraising

 

Founded by reputable & experienced entrepreneurs having a proven track record of creating leading e-commerce players in Asia (one e-commerce company in luxury and lifestyle in Japan with USD 180M of revenue and an e-commerce company in China with USD100m of revenue at the time they sold it to Alibaba).

The company started operations in June 2017 after 18 months of development and was established as the first 100% Healthy & Digital Premium Food Platform For Dogs in Japan. After having received key information on the dog from the owner, the company calculates and prepares the optimal recipe for the dog, delivered to your doorstep. The vision of the company is to provide food which is better for the dog and more convenient for the owner

After having invested a total of USD 2.4M, the Founders/Managers are now looking for USD 5M (Series A) by end of 2018 in order to:

1. Fuel the growth and consolidate its position in Japan through marketing and team strengthening

2. Fully integrate in-house production of the food to increase margin

3. Enter China, leveraging its premium Japanese brand image

Key Financials:

  • Revenues 2018E: USD 500K USD (+470% vs 2017)
  • Growth: 34% CQGR Q2-2017/ Q2-2018 (Compound Quarterly Growth Rate)
  • Revenues 2019F: USD 6.65M
  • High-margin business (51%)
  • Reaching operational breakeven point by 2020 (EBITDA: 6% margin)
  • High customer conversion rate = 4.5% (well above e-commerce standard of 2%)
  • Limited inventory, customized on-demand production

Key Investment Considerations:

    1. The company’s existing strengths:

  • A proprietary algorithm developed with reputable veterinarians and nutritionists to calculate the dog’s daily optimal nutritional needs, based on scientific data and dog owners inputs
  • Certified top-quality, human edible fresh ingredients from Japan, associated with a premium brand
  • First digital player in a fragmented and traditional industry
  • Growing loyalty rate: From 35% of long term repeaters in May 2018 (number of new customers for a particular month repeating each month) to 45% in January 2019E.
  • Strategic partnership with one of the largest retailers in Japan to develop Online To Offline strategy, a strong local OEM and ongoing discussions with the leading insurance Pet site
  • A world-class, experienced and solid team with already proven track records in leading digital or e-commerce companies
    2. Attractive market & business model:

  • Dogs are highly trendy in Japan = 11 million dogs vs. 13 million kids
  • Life expectancy of dogs around 14 years = automatic repeating revenue
  • Dog products market has been consistent in value (USD 1.3B on average over the past 5 years)
  • Digital sales to optimize the distribution (i.e. being able to deliver from the factory to the doorstep of the customer allows the company bypass the traditional distribution fees chain and by the way buy better base ingredients for the food)
    3. Numerous growth drivers:

  • Loyalty rate in the company’s home market is high with 35% of repeat customers and high LTV
  • Virality of the dog related subject allowing a low customer acquisition cost on SNS
  • Very qualified database of customers and dogs (thanks to online questionnaire to calculate the recipe) allowing to efficiently sell more than food in the future (accessories, insurance, health products etc..)
  • For the time being only 100% beef recipe with the plan to expand to other base recipes (chicken, fish etc..) in order to grow the market share
  • Ambitious digital marketing plan: +940% of new visitors between April 2018 and January 2019E
  • Opportunity to expand in neighboring countries: China, Korea, Hong Kong…
  • E-commerce in Japan and Asia is booming: 2017 – 2022E: from USD 104B to 130B in Japan only; from USD 1.4T to 2.3T in APAC (Statista)