Photo - PAIDA
play_arrow
View
46028

PAIDA

Marketplace for combined services in one single subscription

Kazakhstan, Astana city
Market: Internet and IT, Mobile applications
Stage of the project: Idea or something is already done

Date of last change: 03.04.2020
Min investment
$  50.000
Show contacts
Total required
$ 80.000
Rating
equalizer из 1000
help
Calculated and estimated occupancy of the project (more about ratings)
My rating
1
2
3
4
5
6
7
8
9
10
Average rating:

Idea

Clients can buy combination of services in one single subscription: additional child education, fitness and beauty. Retail services also available. Partnerships directly with professionals only. This allows professionals/partners to manage their own sales independently and offer their own terms to the owners of the clubs/salons/areas and increase revenue up to 90%.

Current Status

Until now we were working in one niche (beauty). In 2019 we introduced subscriptions in beauty services. Revenue: 18.5 million tenge for the year 2019. The number of subscription (wholesale) base: 460 clients. The number of customers (retail) is over 3,000 people. LTV 10%.

These results moved us to the idea of adding two other directions/services: fitness and additional child education.

Now we have a team of two app developers and one project manager. UX/UI designer is also under consideration. We already have a design prototype.

Market

The buyer is "middle income" person. Buyer with an average income per month earn 120-700 thousand tenge. The purchasing power in the “middle” corridor differs significantly. If a consumer with “average minus” earnings spends not more than 10% per month on fitness, then the “average” is ready to spend 25% more, and the “average plus” up to 40%.

Problem or Opportunity

Professionals already had a practice to rent seats or rooms. However, this is limited due to the lack of sales (fails to generate traffic) or manage time for their personal life.

PAIDA have agreements (fixed prices and volume) with professionals and will guarantee qualified list of partners’ available.

Clients have specified amount of visits according to the chosen/subscribed package (monthly/annual). There is also an option for clients to use subscriptions as a gift to their friends or/and order services directly without using subscription. Hence, building trust and improving LTV.

Solution (product or service)

PAIDA gives an opportunity to work anytime professionals want, managing amount of clients and being able to offer their own terms to the owners of the clubs/salons/areas.

On a market level, PAIDA will stimulate new relationships between professionals and business owners. This will increase quality of services and increase sales as a whole.

Competitors

naimi.kz
profi.kz
olx.kz

Advantages or differentiators

Unique offer that was tested during the 1,5 year and with having sales results.

Strong team and desire to open 30 000 affiliate (franchisee) clubs/barbershops/salons in a certain territory according to the company standards.

Finance

Annual revenue from subscriptions only ₸48 703 000,00
Annual net profit ₸16 802 464,50
Average return on margin 80%
Average EBITDA margin 40%
Net Profit Margin 35%

Expectations from sales for the next 5 years: ₸250 000 000
If we consider sales from franchise sales: up to ₸400 000 000 in 5 year perspective

Business model

Marketplace: monthly/annual subscription sales 4-15% (b2c, b2b).
Sale of franchises, where the lump-sum payment is $ 2500 and royalties from 10% to 15%, depending on the terms of the contract.

Money will be spent on

Salaries for 2 ios / android developers and 2 sales managers
UX / UI app design
Rent of the server
Traffic/leads purchases
Marketing/production
Integrations: Support chat / Facebook / Gmail-registration, Yandex-card, Kaspi, Paybox.
Legal support and consultation of the project
Purchase of analytics and research of services market

Offer for investor

Purchase of a 7% stake/share of the company with investment in 3 rounds

Team or Management

Risks

The risks of the project are the shortage of strong managers in the Management Company, a weak sales department and the inability to maintain a team of IT-programmers providing work for the app/marketplace, end-to-end analytics, ERP systems, including franchising and educational services.

Incubation/Acceleration programs accomplishment

NA.

Won the competition and other awards

MOST incubator participant.
5,00
1
2
3
4
5
1 voice
Sign in/Sign up
arrow_back
EN
more_horiz
close
visibility166
star0
Add to favorites
Delete from favorites
share
close
thumb_up0
Like
Unlike
Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video