Moot corp may_08_2010_fin_al


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Moot corp may_08_2010_fin_al

  1. 1. THE UNIVERSITY OF TEXAS AT AUSTIN<br />Global Moot Corp Competition<br />MSTC MEXICO<br />McCombs School of Business<br />May 8th, 2010<br />Recargatel!<br />
  2. 2. The Pain<br />Mobile business in Mexico has market size of 80M and a growth rate of 15%.<br />In Mexico current locations to buy air time are not near and the amounts are not affordablefor:<br />56M mobile users!!!!<br />
  3. 3. Our Solution: Recargatel!!!<br />Wireless Pay Phone Vending Machine<br />Buy Prepaid air Time<br />Public phone callsText MessagesContents<br />Remote management system<br />
  4. 4. Business Landscape<br />EndUser<br /><ul><li>Nobankaccount.
  5. 5. Income: Lessthan$100 USD a week.
  6. 6. No landlineorcomputer.
  7. 7. StrongCommunicationsneeds.</li></ul>Pop & MomStore<br /><ul><li>Nobankaccountorcreditcard.
  8. 8. Cash Economy.
  9. 9. No computerto sale prepaid air time formobilephones.
  10. 10. Family Business (1,000,000 in Mexico).</li></li></ul><li>ValueChainWiPhone (Hardware)<br />Pop & MomStore<br />Recargatel!<br />Margin: $84 USD<br />Mobile Carrier<br />Margin: $146 USD<br />Activities/Role<br />Deliver the Wiphone<br />to the Mobile Carrier<br />(Full Cost: $280 USD)<br />Activities/Role<br />Order Wiphone <br />To Recargatel<br />(Pays $364 USD)<br />Wiphone 18 months<br />Financing: $32.9 USD<br />Activities/Role<br />Order a $510 USD<br />Wiphone<br />
  11. 11. ValueChainPrepaid air time<br />Pop & MomStore<br />Margin: 4%<br />Recargatel<br />Margin: 5%<br />Mobile Carrier<br />Margin: 91%<br />End Customer<br />Needs<br />Buy a $1 USD <br />prepaid time<br />Convinent location<br />Activities/Role<br />Time Air Distribution<br />(Mobile Aggregator)<br />WiPhone support<br />Activities/Role<br />Wireless Network<br />Avilable<br />Activities/Role<br />Prepaid Inventory<br />Take care of Wiphone<br />
  12. 12. Marketing Plan<br /> Focus in niches and differentiation<br /> Operations in 4 cities:<br />Monterrey Mexico City Guadalajara Leon<br />40 Million Mobile Phone<br />
  13. 13. Mexican Market: $8b USD<br />Market Share Breakdown<br />Others<br />Paga Todo<br />Diestel<br />Recargas <br />Noreste<br />
  14. 14. Business Model: Acid Test<br />Good News: We have a market trial of <br /> 1,000 units in Monterrey, Mexico.<br />The key conclusion are:<br />Good Pop&MomStoreacceptance because brings additional customers to the store.<br />Average monthly revenue of $800 USD per store.<br />
  15. 15. Pilot Test Revenues<br /><ul><li>Revenue: $13M MX pesos approximately a recurrent business of $1M USD a month</li></ul>Recargatel: Weekly Revenue<br />Growth: 30 %<br />Eastern <br />Holiday<br />
  16. 16. Industry Leaders Opinion <br />“This is a really attractive technology that is innovative and necessary”<br />Mateo Mendoza, General Manager of Public Telephony from TelefonicaMovistar<br />“I’m interested in the WiPhone… So, we can start with a beta test of 500 units and then see how it works”<br /> Daniel Hajj Abounrrad CEO America Movil<br />(Carlos Slim Company) <br />
  17. 17. Time line<br />PO<br />
  18. 18. Management team<br />
  19. 19. Financials: Revenues<br />Top up (Prepaid air time)<br />Revenues by 2014<br />Carriers $670M<br />$740M<br />Pop&Mom $33M<br />(Stores)<br />Recargatel $37M<br />
  20. 20. Business Opportunity<br />Revenues of 51,441,511 USD on 2014<br />Payback: 20 months<br />NPV of $13,757,560 USD<br />IRR: 84.7%<br />Company Value on 2014: $74,282,050USD<br />An Investment of $1.4MUSD by 37.5% Preferred Stocks <br />
  21. 21. The Deal: What we Offer!!!<br />$ 1.4 MUSD<br />Equity: 37.5%<br />Funds used for:<br />ManufacturingWiPhones.<br />Logistics Infrastructure and Headcount<br />Exit Strategy: <br />Selling the company to Mobile Carrier or Banking.<br />IPO.<br />Recargatel!<br />
  22. 22. Summary: Please Remember!!!!!<br />Disruptive Opportunity:Focused to a market of 56M mobile users in Mexico but the need is worldwide.<br />Proven Business Model & Technology: Because now recargatel has a 1,000 units in Monterrey Mexico applying Coca-Cola business model.<br />Team:More than10 Years of Entrepreneurial & Telecom experience in Mexico.<br />Cash Machine for <br />main stakeholders:<br />$740M USD<br />
  23. 23. THE UNIVERSITY OF TEXAS AT AUSTIN<br />Global Moot Corp Competition<br />MSTC MEXICO<br />McCombs School of Business<br />May 5th, 2010<br />Recargatel!<br />
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