Spoyl - Startup Business Plan

8/17/2019 Spoyl - Startup Business Plan

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TEAM CHUCK A LUCK

BUSINESS PLAN

SPOYL

Department of Professional Studies

Christ University


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EXECUTIVE SUMMARY

Spoyl is a peer-to-peer buy and sell marketplace for new and pr-owned fashion. You can buy

or sell your style, taste, and even your favorite once oh-so loved fashion. At Spoyl you get to

shop the closets of fashionistas across India, and sell yours too. The customer can list theiritems for sale within 60 seconds or less from their smart phone (iPhone and Android). With

Spoyl in your pocket, you will never fall short of fashion.

Spoyl is only available in the following cities at the moment - Bangalore, Mumbai, and Delhi

NCR.

The following report talks about the expansion of Spoyl in India. The first part of the report is

the executive’s report which talks about how prospects can be converted to r egular customers

followed by strategies to overcome competition.

The next part of the report is about marketing the application. It starts with a detailed STP

analysis followed by elaborate market strategies to attract different targets. A detailed

consumer behaviour analysis is also provided which also talks about re-emergence of old

trends.

Next is Human Resource Planning, which talks in detail about the organisation structure, the

minimum qualification for each position. This is followed by methods to be adopted for

recruitment and strategies to improve work environment.

The next part of the report is Business Development, which talks about various new things

that can be introduced or changed that can be made to make the app more appealing to the

public. It also talks about how entrepreneurship can be encouraged through the app.

Last segment of the report is the financial analysis which talks about the various rounds of

funding the company plans to go through, the source and allocation of funds, customer

projections and estimated five year financials.


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EXECUTIVE’S REPORT

CONVERTING PROSPECTS INTO CUSTOMERS

Spoyl, the mobile based marketplace to trade new as well as pre owned apparel is one of its

kinds as of now. To enhance the market presence and reach a wider customer base we need

to-

1. Communicate effectively our functionality, relevance and uniqueness.

a) Functionality- Second-hand clothing has been traded since the Renaissance era, and

widely consumed by a majority of the populace in the U.S and the UK, however

coming to the Indian market scenario, it is very new and a kind of a taboo. it should be clear in the minds of the consumers, that we deal in refurbished or second hand

apparel which is based on a Consumer to Consumer (C2C) business model and is a

“E-Consignment Shop”-- Location where individuals sell goods; the facilitator takes

some percentage of the sales profit in return. The shops usually trade “one -to-two year

old apparel in good condition.

b) Relevance- In the present scenario where fashions and the trends are changing by the

second and there is a desire among people from the middle class to buy and wear

exclusive and luxury apparel and also where there are bargain Mongers always on a

look out, Spoyl is the right application to log onto.

c) Uniqueness- There are quite a few online apparel dealers in the market, but none of

them deal in Pre-Used apparel and accessories and also none of them work on a C2C

business model. Spoyl is one of its kinds and a very practical application, where there

is maximum utilisation of manufactured apparel.

2. Identification of the motivations which lead to second-hand apparel trade and

further propagate them to lure more customers-


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The following are the motivations which lead to the proliferation of 2nd hand trade-

a) Economic advantages of frugal shoppers: Alternatives to new clothes. For low

income consumers, purchasing pre used clothing is a conflict-avoidance strategy,

a consumer behaviour alleviating the burden of poverty. Thrifty consumers are

thought of as either price conscious, defined as “the degree to which the consumer

focuses exclusively on paying low prices,” or value conscious, “a concern for

price paid relative to quality received”. The desire to pay less, search for a fair

price, hunt for bargains, and the gratification in having paid a bargain price were

described as key motivational factors influencing pre-used clothing consumers.

Therefore, since pre-used goods are generally cheaper than newer ones, indirect

price discrimination between used and new goods encourages thrifty consumers to buy pre-used products with price advantages.

b) Ethical consumerism- Pre Used clothing trades constitute part of ethical

consumerism attempting to minimize or eliminate harmful effects to the

environment or society by reducing clothing disposal. In response to the growing

demand for environmentally-responsible clothing consumption, many recent

studies have attended to disposition, donation, recycling, reselling, reusing,

repurposing, and the purchase of second-hand clothing as important socially

responsible consumer behaviours. Purchasing second-hand clothing takes

responsibility for reusing functional products, reducing the depletion of natural

resources, and avoiding the unnecessary proliferation of products

c) Need for Uniqueness- The need for uniqueness is elicited when consumers want

to be distinguished from others, oppose conformity, and value special and unique

items. Satisfaction comes when consumers meet their need for uniqueness

appeals, product-scarcity appeals, and appeals to counteract conformity among

people around them. Many argue that second-hand clothing is one of the items

fulfilling consumers’ needs for uniqueness.

d) Fashion trends- The reason for wearing used clothing in the 1990s became an

attempt to follow a fashion trend — unlike previous times when wearing pre-used

clothing was necessary for economic reasons and the garments regarded as


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undesirable commodities. Second-hand clothing reflecting the seventies era became a

desirable fashion among consumers from the late 1990s to early 2000. Retro fashion

followers wore old used clothes mixed with new items of dress and new garments

inspired by seventies garments. The seventies revivalism, lasting several decades,

became a trend and created a new look, significantly increasing the demand for

vintage/pre used clothes.

3. Post the identification of the motivations; it is marketing solely which shall

determine our customer base. However we intend on organising the following

events to communicate our core values and appeal to the masses-

a) Fashion Show- Spoyl shall organise 3 fashion shows in Delhi, Bangalore and

Mumbai respectively where the models are going to walk down the ramp wearing

the Pre-Used clothes, which would help people, i.e audience connect to the

concept that everything a person doesn’t need something, it doesn’t mean that it is

worthless, in simple terms, some one’s waste is someone else’s treasure and

moreover the taboo of wearing second hand clothes and would reiterate the fact

that the clothes offered by Spoyl are hygienic and fit for use.

To make these fashion shows a success, we would also be trying to arrange for

celebrity Show Stoppers. This would be further icing on the cake.

b) Celebrity involvement- In a country like India, where Bollywood celebs are

literally worshipped, getting a few celebrities onboard would definitely boost our

market and increase our customer base. By celebrity involvement we basically

mean, to pitch in the idea of Spoyl to them, request them to open an account with

us(which shall be certified), use the app and urge them to make at least 1 upload a

month. This would definitely lead their fan following signing up for Spoyl and a

increased customer base.


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COMBATING NEW COMPETITION

Once we establish ourselves in the second hand fashion products market, we can expect some

new competition to share our market with.

It wouldn't be wrong from our end to assume the following possibilities:

1) New entrants

We can expect fresh competition from new entrants. There will be new applications with a

similar business model and with fresh concepts. We need to therefore constantly update our

app and include additional services in the future. Our main aim should be to have a strong

presence in the market before any new competition arrives, so that we have our own base of

existing loyal customers.

2) Foreign Competition

There are several applications abroad which is based on the same concept of selling used

cloths. Some of the applications available are Poshmark and LetitGo. We can expect them to

enter the Indian markets sooner or later. These companies have been functioning abroad forquite some time, so they have gained functional experience and also have a strong fund

availability.

The one major advantage that we will have over international competition is our knowledge

of Indian customers and sensibilities; also we need to tackle them through our accessibility

and market capillarity.

3) Retail Stores

Established retail clothing and fashion stores which primarily deals with refurbished and

second hand clothes, such as Brand Factory might enter the online market. They will have

market capillarity and also inventory in hand. This could be a major threat for us.

The one thing that these companies lack is the c2c aspect. Spoyl app initiates interaction

between end users, which will not be there in their apps. We need to make sure that we don't

move away from our core aspect and that is the customer to customer interaction. This willgive us an upper hand in tackling this competition


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STP ANALYSIS

SEGMENTING

When we divide our market we’re keeping in mind that we’re dividing our market into sellers

as well as buyers.

Class and income:

The upper, upper middle class and middle class category are more likely to sell their

belongings while the middle class and lower middle class are more likely to buy the products

on Spoyl. Also some of our sellers may put up exclusive products up for grabs; these

products may attract the higher middle or high class sector.

* CLASS WISE SEGMENTATION:

Based on economic standards-

o UPPER CLASS

o MIDDLE CLASS

o LOWER CLASS

Geographic:

Currently Spoyl is present only in Bangalore, Bombay and Delhi which makes the delivery

options rather difficult. But these cities are metropolitan cities and have a larger market to

cater to.

* GEOGRAPHIC SEGMENTATION:

Based on the penetration of the app in existing cities and prospective cities for future plans-

o EXISTING CITIES

o IMMEDIATE FUTURE PROSPECTS

o LATER FUTURE PROSPECTS


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TARGETING

* CLASS WISE

-Middle Class: Using aspects like affordability, efficient packaging and fast delivery, we will

be targeting the middle class.

-Upper Class: By providing aspects like the celebrity items personally signed by them, we

will target the niche market.

* GEOGRAPHIC

We will be targeting the Tier 1 and Tier 2 cities based on the two parameters i.e. internet penetration and population.

POSITIONING

The application will be positioned in the market as a fashion retailer dealing in pre-owned

clothes with the motive of making people understand that there is nothing wrong in wearing

discarded clothes. Positioning will be done in such a way that the app is in no way associated

with being for either just the lower classes or just the higher classes. The motive is to create

an image of comparatively cheaper alternate to first hand branded clothes.


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MARKETING STRATEGIES

Our campaigns and strategies for marketing Spoyl in the cities are focused on creating

attention grabbing campaigns and advertisements. After the initial step of creating awareness

for our app we will tap into the psychology of the market in order to transform their

perception of used clothes. The general notion of people for not purchasing used clothes is

the simple fact that it’s been previously used, in order to change this perception we need to

ensure that they know for a fact that our clothes are dry cleaned and are thoroughly checked

before its sold.

‘I’M NOT A VIRGIN’ CAMPAIGN

With this campaign we’re aiming to grab the attention of the market. We’ll have an alliance

with major and small book stores in the cities where we will distribute bookmarks, these

bookmarks will have ‘I’m Not A Virgin’ written at the top and in the body we will write the

story of Spoyl : I’ve been used before, handled with love and oodles of care. My predecessor

is certain that now the time has come, to give me away and give you the joy of owning me.

Along with the bookmarks, these will also be the tags for our clothes, we’ll also have

hoardings with the same caption and story. Print ads, videos, magazine ads and social media

campaigns will feature #ImNotAVirgin in their posts. Through twitter posts, Instagram posts,

Facebook and snapchat we’ll market this campaign.

‘GIVE SECOND CHANCES’ CAMPAIGN

This is social media and digital marketing strategy. We’re trying to keep our digital and

social media campaigns as fluid as possible. With our video campaigns we’re aiming to tap

into all our prospect target groups. ‘Give Second Chances’ is a video which will start off with

a young girl, in her twenties who’s wearing her favourite branded jacket on a date, where she

gets her heart broken. She then decides to give her jacket away as it makes her sad every time

she looks at it; this jacket is then delivered, like a little gift with a ribbon, to a mother from a

middle class family who later gifts the jacket to her daughter, who is euphoric.

Along with the bookmarks, these will also be the tags for our clothes, we’ll also have

hoardings with the same caption and story. Print ads, videos, magazine ads and social media


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campaigns will feature #ImNotAVirgin in their posts. Through twitter posts, instagram posts,

facebook and snapchat we’ll market this campaign.

‘SPOYL BRAT’

Our mascot for Spoyl is Brat, a young, smart looking hunk, who’s bedazzled and dressed up

from head to toe. He’s the face of Spoyl. On our print ads and social and digital media

campaigns we’ll have #SpoylBrat in our posts. This mascot also grabs the male sex’s

attention.

‘DON’T STACK IT’ CAMPAIGN

This is a CSR and charity initiative by Spoyl, more than just a marketing campaign. We’ll

deck up an area, say a space in a mall or the theatre in MG road boulevard, where people can

come and leave their clothes for charity. We’ll give out print ads, hoardings and radio ads for

the same. Our posts on social and digital media portals will have #DontStackIt.

‘SPOT THE DIFFERENCE’ CAMPAIGN

In newspapers and magazines where we have the games and puzzles section we’ll have an ad,

with two pictures of the same girl wearing the same dress, except one is new and the other is

used. The caption will say ‘Spot The Difference’ just like the puzzles in newspapers (spot

seven differences). With this campaign we’re trying to tell the masses that used clothes are

also handled with love and care and the clothes and articles sold on Spoyl are not necessarily

damaged or dirty.

‘SECOND TIME LUCKY’ SPOYL FASHION SHOW

We plan on organizing a fashion show in the midst of the street, like the MG road boulevard.

The music will be arranged with boombox’s and at the end of the runway we’ll have a spoil

box where the model will come and pose for the shutters. The twist in this campaign is that

it’s a volunteer based fashion show, we’ll have a contest for people who are interested in


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being a part of the fashion show, by being a part of this show we’ll give them a discount of

15% on the cost any article on our app.

PACKAGING AND DELIVERY

Marketing is more than just the usual forms of campaigns and digital marketing, marketing is

all about precision and making sure the customer is convinced. Once our customer orders a

Spoyl product, the delivery will reach them in the form of a gift. We want to ensure that the

customers feel special and satisfied when they receive their package. The delivery will be

wrapped in soft white fibre paper and tied with a red ribbon with our ‘I’m Not A Virgin’ tag.

GUERRILLA MARKETING STRATEGY

In the middle of the r oad we’ll have a treasure chest out of which clothes and accessories are

flowing out and next to the treasure chest we have our mascot Spoyl Brat.


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CONSUMER BEHAVIOR ANALYSIS

INTRODUCTION

The consumer market for fashion apparel has become more varied by a surge in designer

brands, store brands, personalisation, customs and advertisement in the global marketplace of

today. The fashion industry is characterized by fast changing trends, a short product life-cycle

and high demand uncertainty; therefore, the task of fashion designers to come up with new

designs over and over within a relatively short period of time by fulfilling the consumers’

needs is quite challenging. Fashion has a different life cycle than other products or services;

fashion trends appear cyclically. Old designs can also be a great source of inspiration for

designers.

FASHION TREND IN INDIA

India presents a very interesting picture when it comes to the question of fashion trends.

Indians seem to follow western fashion trends, thanks to 21st century globalization, but they

are quite late in doing so. Also, while we do borrow certain styles from our western

counterparts, Indians always prefer an Indian touch to their designs.

THE EMERGENCE OF ETHICAL FASHION

Ethical fashion is a new trend in today’s fashion scene. Ethical fashion represents an

approach to the design, sourcing and manufacture of clothing which maximises benefits to

people and communities while minimizing the impact on the environment. Such ‘green’

fashion is appreciated worldwide for its contribution to a cleaner planet. However, the

demand remains low for these products because most consumers are not willing to invest

their time and effort which are required to acquire them.

TRENDS AMONGST FEMALE BUYERS

Female buyers form the imposing bulk of the fashion-following audience. However, a mere

celebrity endorsement is not enough to guarantee higher sales. Female buyers are today very

aware of brands thanks to digital media. Thus, digital marketing is proving to be the

emerging weapon in the hands of sellers to attract buyers.


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A recent joint study conducted by researchers from the Aurobindo College of Commerce,

Delhi University and the Indira Gandhi National Open University discovered that an

overwhelming 69% of female respondents do not buy products on the basis of celebrity

endorsements, while only 18% said that they do. It was further found out that most of the

respondents who said YES did not have access to internet facilities or are not computer

savvy, with television being their only access to electronic media, hence celebrity

endorsements proved to be a major influence on their buying behaviour.

RE-EMERGENCE OF OLD TRENDS

With the fashion industry being as dynamic as it is, it is very often seen that trends and

designs that were once thought to be dead and buried have made a comeback to the shelves,

and the response of consumers to these returning trends has always been positive. This

continuous mix of new and old trends spawns off several new designs, and this is what keeps

the fashion industry running.

Back home in India, the humble saree has been a subject of spiked interest in recent years,

with several highly acclaimed designers creating new designs using the quintessential Indian

outfit. This only proves the adage “old is gold”.

As per a Mckinsey and Company report, nearly 59% of people said that they would try out a

new fashion trend even if it was revived.

Predictions for Spoyl:

This presents a wonderful opportunity for an app such as Spoyl, which facilitates the

exchange of pre-owned fashion coupled with affordability and hassle free shopping.

Spoyl can also revitalize the Ethical fashion segment, as the exchange of ethically produced

clothing allows for increased accessibility to such clothing. A forecast of consumer

satisfaction after using the Spoyl app would present the following graph.


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The graph depicts an increase in consumer satisfaction after using Spoyl. Contributors to the

increased consumer happiness are affordability, accessibility, and ease of purchasing.

A look into some Revived Trends:

1. Hats: Beanies, Fedoras and even baseball caps have made a comeback.

2. Denim-on-Denim: This 80s trend is once again in vogue.

3. Crop tops


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4. Pocket squares: The ultimate expression of sophistication, pocket squares are

stealing the limelight all over again.

5. Overalls and suspenders: Simple overalls and suspenders have proved to be

indispensable wardrobe buddies for both men and women, and have stood the test of

time.


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HUMAN RESOURCE PLANNING

ORGANISATIONAL STRUCTURE

"Spoyl"

Full TimeEmployees

MarketingDepartment

Finance

Department

Human ResourcesDepartment

TechnicalDepartment

Customer Care Cell

Refurbishing Team

Delivery StaffPart Time

Employees

CampusAmbassadors

Interns

Mr. Bhargav Errangi

CEO GrievanceRedressal Cell


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CRITERIA FOR SELECTION

EMPLOYEES AT SPOYL

Part Time

Employees

Full Time

Employees

Delivery Staff

•B. Tech Degree

•Deft In Work

•Ability To Tackle Technical Glitches QuicklyTechnical Team

•BBA Degree/ BA in Design

•Creativity

•Public Speaking Skills

Marketing

Department

•MBA in Human Resources

•Ability to Connect with People

Human ResourcesDepartment

• >5000 Instagram Followers

•> 5000 Facebook Friends

•'Fashionista' Image

CampusAmbassadors


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RECRUITMENT STRATEGY FOR EMPLOYEES

“No enterprise can exist for itself alone. It ministers to some great need, it performs some

great service, not for itself, but f or others; or failing therein, it ceases to be profitable and

ceases to exist.”

Recruitment/Selection process

1) Campus selection:

This process can be used for hiring white collared employees. The HR managers and high

level managers are going to go about the top colleges selecting applicants from various

colleges for various jobs. The selection process has to be transparent and effective in

selecting the right people for the right job at the right time.

2) Advertisements: This method includes

i) TV advertisements

ii) Newspaper advertisement

3) Job boards (LinkedIn, college recruiter etc.):

This method can be used to hire employees at all levels. This is a method of online

recruitment.

4) Employment Exchanges:

This method can be used for hiring personnel with technical expertise. The employment

exchanges maintain detailed records of job-seekers and refer appropriate candidates to the

employers. The employers are required to notify the vacancies to these exchanges. The

agencies help to match personnel demand and supply by serving as a link between job

seekers and the employers.

5) Direct Recruitment:

This method is used for lower level managers. Under it, a notice is placed on the notice board

of the enterprise specifying the details of the job available. Job seekers assemble outside the

premises of the organization on the specified date and selection is done on the spot. This is


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also called recruitment at the factory gate. This practice is followed usually for casual

vacancies of unskilled or semi-skilled jobs.

6) Guerrilla job marketing:

This way is used for the unconventional way of recruitment like conducting competitions

including “selfie” competitions, the winner of which wins a part time job at the Company.

7) Recommendations from employees:

The employees who have already been recruited already recommend other people for the

respective jobs.

8) Algorithmic recruitment:

This method can be used to hire campus ambassadors and interns by accessing their social

profiles and finding the people who are like minded or have the same thought process as the

employees and then approach them. The company believes in consistency and paying close

attention to detail thus, it is vital for the employees to also follow these principles.

9) Elevator Pitch:

A mandatory test which needs to be conducted to test the creativity and convincing skills of

the marketing team is the Elevator Pitch to be made to the CEO of the Company.

PART TIME EMPLOYEES

Part time employees of the enterprise should have enough reason to choose Spoyl over other

startups as a place of work. Reasonable work timings (flexi hours) and attractive pay

packages should be a given. Since most of our part timers will be college students, Spoyl will

also provide them an opportunity to these students to work full time. A job offer right out of

college with an upcoming startup is a great recruitment strategy for college students

especially out of Tier 2 and Tier 3 cities.

Also, should our part time employees choose to leave and work elsewhere, we would be glad

to provide recommendation letters to them to help them on with their career.


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4) “Employee of the Month”:

Employers will have to continuously encourage and take notice of the work that their

employees are doing. This motivates the employee and makes him/her understand that they

belong and are needed at the organisation. In addition, continuous encouragement would

mean they would be in line for promotions. Self-actualization is one of human being’s

greatest needs and getting promoted satisfies it. They know they can reach greater places with

the company and hence, this also acts as a retention strategy.

IMPROVEMENT

RESOULTION QUALITY

Studies have shown that people have a staggering 65% increase n engagement with better

quality / resolution pictures. Keeping this context in mind, Spoyl has decided to inculcate into

our app, a software solely intending to providing standardized, high resolution images on the

app.

A small change like this one, would be largely beneficial to all stakeholders here i.e. the

sellers, the buyers and our app, Spoyl.

To facilitate the same, we have chosen a simple technology that uses high filter technology

along with soft light techniques to produce the adjusted opacity in the picture which in turn

increases resolution.

This software will be inculcated in the app and made applicable to all pictures.

PACKAGING

“Packaging can be theatre. It can be a story”

- Steve Jobs

To put that into perspective, to give our customers a world class delivery experience , we now

have a separate team that focuses solely on the delivery and packaging . Clothes picked from

the sellers would be gift wrapped in soft white fibre paper and tied with a ribbon with our

“I’m Not a Virgin.”


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Studies show a 30% increase in sales growth accredited to efficient packaging. Also, along

with a boost for sales, it would act as a natural customer reclaiming due to increase in

customer satisfaction.

LOYALTY PROGRAMMES

Our company has finally decided to include and introduce various loyalty programs for the

sellers who will be the major players he app and the second – hand market.

THE WAIVER PROGRAM

We have decided that the program will include a waiver for the first 3 sales for the sellers.

1. This is an added incentive for the sellers to sell their products on our application.

2.

Moreover, the 15% waiver serves a very good purpose of the sellers selling the

products at a cheaper rate.

3. Since more and more sellers are joining the market then according to the supply chain

if the suppliers increase the competition increases and thereby to the buyers demand

products at cheaper rates.

4. Looking into that we certainly believe that this aspects of a first 3 sales waiver

program will definitely help the sellers to upload their product in the market and not

worry about the 15% minimum stake that they have to pay to Spoyl. Also this gives

them access to the full profits out of the product sold.

5. Adding to that, our main priority with this program is to get as many sellers as

possible and expand our consumer base. This will also help more people sign in and

utilize it without worrying without any charge.

6.

It works as a motivation to those whose wardrobes are filled and wish to add more

items but cannot just because of their inability to sell existing clothes.

DESIGN

Design is the most important part of the customer retention and customer acquisition. We

believe that a few aspects can be added and modified in order to make sure that the


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application looks presentable and more attractive to the users. Having said that, given below

are few of the strategies:

TIME ZONE

A time zone would be created wherein there would be various clothes shopped for at

discounted rates from the application.

The net cost – difference between offered and discounted price - would be borne by Spoyl as

a new technique.

GRAPHICS INTERCHANGE FORMAT

Graphics Interchange Format (GIF) technology will now be used for clearer viewing of the

products. Bitmap images will now be used in order to showcase the buyers the various angles

and the realistic view will be provided to the buyers.

This will not only help the buyers in understanding the images and making the right choice

but will also help the sellers to portray the true image as the buyers aren’t aware of the actual

quality but can look into the image.

PROMOTION OF ENTREPRENEURSHIP

One of the main features of the business model is to connect buyers and sellers in the apparel

space. An existing feature of the application is providing a gateway for upcoming

entrepreneurs/ designers to sell their products. This provides a platform for these designers/

entrepreneurs to be able to showcase a wide range of products. This would also offer more

choice for the customers and cater to the needs of those people who do not fancy buyingsecond hand clothes.

This would also enable young entrepreneurs like college students pursuing fashion designing

or homemakers cum designers who do not have their own boutiques due to high capital costs

or a lack of time.

As seen in the image below, the “New” tag is added to those products which haven’t been

used before.


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ADVANTAGES OF THE CONCEPT

1) Increases potential customer base

2)

Provides a platform for entrepreneurs/ fashion designers to showcase their work

3) Provides a platform for new and upcoming entrepreneurs

4) Good quality clothes available at cheaper prices


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FINANCIAL ANALYSIS

FUNDING

The following table explains in detail how the company will go about its funding andexpansion. The Angel round of funding has already happened and the company has already

set up operations in Bangalore, Mumbai and Delhi.

Funding Angel Series A Series B

Amount Rs. 4 crores Rs. 12 crores Rs. 30 crores

StakeDiluted

10% 18% 25%

Equity

Structure

Month June’15 Feburary’16 August’16

Period 8 months(2 months development phase)

6 months 12 months

Expansion

to cities

Bangalore Kolkata Ahmedabad

Kanpur

Mumbai Hyderabad Indore

Jaipur

Delhi Chennai Nagpur

Lucknow

Pune Surat

Aurangabad

Angel

Owner

Angel

Owner

Series A

Angel

Owner

Series A

Series B


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SOURCES OF FUNDS

The following venture capitalist firms have been shortlisted based on their previous

investments in the fashion and retail sectors. The firms listed under Series A are

comparatively smaller in size and provide funding between the bracket of Rs. 8 crores – Rs.

20 crores. The firms listed under Series B are bigger in size with their investment bracket

being Rs. 25 crores – Rs. 45 crores.

SERIES A SERIES B

The plan is to approach all of them and go for the one offering highest amount of funding for

the least stake in the company. Basically, the firm which values our company the highest will

be chosen.


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ALLOCATION OF FUNDS

PARTICULARS Series A Series B

Setting operations in new cities 6 crores 9.6 crores

Expanding operations in existing cities 3 crores 7.9 crores

Marketing 1.2 crores 3.4 crores

Promotional discounts and offers 0.8 crores 2.8 crores

Day-to-day operations 1 crores 6.3 crores

TOTAL 12 crores 30 crores

CONSUMER BASE

The expected number of orders from tier-1 and tier-2 cities is given below:

Cities Aug’15-Mar16 Mar’16-Sep’16 Sep’16-Mar’17

Delhi, Mumbai,

Bangalore

130 290 560

Kolkata, Hyderabad,

Chennai, Pune

- 150 320

Others - - 270

TOTAL 130 440 1140

The company keeps a cut of 15% on the order price with itself while the rest 85% is all

retained by the seller.

For the purpose of calculations, we have kept the average price of all orders at Rs. 500.


29/29

PROJECTED INCOME STATEMENT

PARTICULARS

2015-16

(started

Aug'15)

2016-17 2017-18 2018-192019-

2020

Revenue from Operations 9,750 1,18,500 2,13,300 3,41,280 6,48,432

(+)Other Non-operating Income - - - - -

Total Income 9750 118500 213300 341280 648432

(-)Expenses

Cost of Revenue 1,40,000 6,10,000 8,40,000 11,20,000 13,20,000

Employee Benefit Expense 1,20,000 8,80,000 9,60,000 10,80,000 11,50,000

Depreciation and Amortisation 80,000 2,40,000 3,60,000 4,80,000 4,80,000

Selling and Distribution Expense 6,00,000 11,50,000 8,40,000 12,60,000 10,60,000

Finance Cost - - - - -

Other Expenses 40,000 1,50,000 1,80,000 2,40,000 3,20,000

Total Expenses 980000 3030000 3180000 4180000 4330000

EBT -970250 -2911500 -2966700 -3838720 -3681568

Provision for Tax - - - - -

EAT -970250 -2911500 -2966700 -3838720 -3681568

Documents

Spoyl - Startup Business Plan