SlideShare a Scribd company logo
An MSME marketplace across boundaries
MSME exporters in India
Inadequate marketing
& client service
Constraints in funds and
a dearth of available
personnel with required
skill set.
Access to unexplored
markets
No access to low MOQ
importers
No portal that directly
connects MSME
exporters to Low MOQ
importers.
MOQ matching
Complicated exports
process
Novice exporters
usually find the exports
procedure
cumbersome.
Export documentation
& logistics service
Credit
Risk
MSME exporters, even
after getting enquiries,
do not have sufficient
credit to execute
exports.
Trade finance (Pre-
shipment credit)
Inability to
trust buyers
3rd Party Buyer
verification is
challenging & payment
terms often not in favor
of sellers.
Escrow & Insurance;
3rd party verifiers
Issues of MSME exporters
Innoveo for MSME exporters
Issues of MSME exporters
Pre-sale Post-sale
Issue: No way for the buyer to understand market trends as buyers often get a wide range of prices for same quantity.
Alibaba, IndiaMart and other competitors do not offer any service for buyers to reduce price opacity.
Pre-Sale Issue 1 : Price opacity – inability to understand Indian markets
Solution: PriceTrend Index for Commodities
Issue: No way for the buyer to find sellers with available stocks and those who cater to their specific quantities
Pre-Sale Issue 2 : Inability to find sellers who entertain lower orders
Solution: Dynamic Marketplace
Pre-Sale Issue 3: Communication & cultural barriers
Business embassies representing Indian MSMEs
that will market, promote, facilitate transactions
and give after sales service enabling trust and
long - term relationship with each regions MSME
buyers
MSME buyers from markets like Europe, Middle East, Korea, Japan, etc. are not
comfortable in communicating in English and therefore avoid sharing their
requirements.
Due to past bad experiences, Indian MSMEs often have bad reputation and
therefore, MSME Buyers do not trust new businesses.
As Indian MSMEs do not have language experts / translators & since their sales
agents aren’t highly skilled, they are not able to reach out to the MSME buyers.
Buyer Issues
Seller Issues
Innoveo Solution
Export documentation
service
Trade finance
(Pre- shipment
credit)
Escrow & Insurance;
3rd party verifiers
Post-Sale : Execution of Export
Aggregating banks &
NBFCs who offer Pre-
shipment credit and
facilitating service to
exporters
Dedicated export consultants
who prepare & manage
documentation as well as be
POC for freight forwarders
Creating an escrow service for
exporters while aggregating
insurance companies & 3rd
party shipment verification.
Sales Commission basis
Transaction value in Rs. Lakhs Commission
Between 0.1 and 1 2.50%
Between 1 and 5 2.25%
Between 5 and 10 2.00%
Between 10 and 50 1.75%
Between 50 and 100 1.50%
Between 100 and 500 1.25%
Between 500 and 1000 1.00%
Between 1000 and above 0.75%
Revenue model
Other potential streams
• Export documentation service (0-1% of
revenue)
• Commission from Insurance companies
• Commission from freight forwarders
• Commission from Banks & NBFCs.
• SaaS subscription fee for handling
complete export process
Competitive Landscape
Export Consultants
Trade Finance
B2B E-commerce
Exports Logistics
End to End EXIM
transaction
Business Model Commission Merchanting
Revenue Model Up-to 2.5% deducted from total revenue of seller
4 to 5% added to sellers price and taken directly from
buyer
Payment instrument Allows escrow, LC Only telephonic transfer, No LCs
Product categories Commodities (Agri & later others) Fruits &Vegetables
Logistics Aggregator & facilitator for sellers Facilitator for self
Investment Stage Bootstrapped Raised three rounds till now $76.5 M
Competition analysis
Market size
All values are “per year”
TAM
$5.41b
SAM
$1,063m
SOM
$53m
NaturalAromatic
Compounds
Agriculture Products
Fruits &Vegetables + Cereals + Spice + Oil Seeds
Source:Tradestat | APEDA Exchange | OEC World
TAM
$169b
SAM
$5,441m
SOM
$272m
Projected Metrics after first year of Seed
Fund
• 1000+ Supplier database for 2
• Total no. of inquiries: > 500
• No of potential transactions - 50 export
transactions: > 20 in each category
• Total potential transaction value through
portal after 1 year: > 1 crore
• Total potential revenue after 1 year =
• Average Turnaround time will be 1
days (Efficiency in logistics + faster
communication)
Current & Projected Metrics
Current Metrics (Merchant Exports)
• 500+ Supplier database for Aromatic &
Natural Ingredients
• 30+ supplier database for Fruits &
Vegetables. (After Pivot)
• 25+ Exports inquiries gathered from
“Campaigns” run in France, Germany,
Netherlands, Japan, US, Singapore
• 1 End to End export transaction
completed with a French company.
• Total transaction value conducted –
Rs.1,40,000
• Average Turnaround time is > 2 months
for a single export transaction (breakage
in notes)
The road ahead
Q1 Q2 Q3 Q4
Aromatic & Natural
Products in
Europe & the UK
Fruits &Vegetables
in Europe & the UK
Spices in Europe
Cereals in the UK
Business Embassy in Europe
& the UK
Oil Seeds | Herbal
Products in Europe
Spices in the UK
Q1 Q2 Q3 Q4
Fruit &Veg, | Cereals in
UAE
Business Embassy in
UAE
Herbal Products | Spices in
USA
Business Embassy in USA
Oil Seeds andAromatic |
Natural Products in USA
Aromatic &
Natural Products |
Spices in UAE
2023
2022
OurTeam
Vaibhav Sharma
Founder & CEO
Vaibhav holds a Masters degree in Innovation and
Entrepreneurship with a Bachelors degree in Information
Technology. With prior experience as a marketing strategy
consultant, he is passionate about bringing the Indian MSME
storefront to the world market. He enjoys Indian classical
music and prefers to unwind with a good book.
Rafiq Shaikh
Co - Founder & MD
Rafiq holds a Masters degree in Business Administration
with a Bachelors degree in Electronics. He has been an
Exotic Derivative Trader for Indian and MNC banks.
Fascinated by the Indian Agriculture sector, he has gotten
into the Natural Aromatic Compounds market with a
manufacturing unit. He enjoys history fiction as well as
travelling.
End Slide
Appendix
Issue 2.2: Better price with Innoveo in Low order - quantity trades
Exports transaction of a low order – quantity trade | IES SAS, France requires 10 Kg. of CentellaAsiatica powder from India
Cultivator (Source)
Cost: 100 Kg. Rs. 233 / Kg.
Add: Margin 5%
Sell: 100 Kg. Rs. 245 / Kg.
HCNO (Exporter)
Buy: 100 Kg. Rs. 245 / Kg.
Add: Margin 18%
Sell: 100 Kg. Rs. 289 / Kg.
Wholesale (Importer)
Buy: 100 Kg. Rs. 1,651 / Kg.
Add: Margin 10%
Sell: 10 Kg. Rs. 1,816 / Kg.
IES SAS (End User)
Buy: 10 Kg. Rs. 1,816 / Kg.
Cultivator (Source)
Cost: 100 Kg. Rs. 233 / Kg.
Add: Margin 15%
Add: IE Commission 2.5%
Sell: 100 Kg. Rs. 274 / Kg.
IES SAS (End User)
Buy: 10 Kg. Rs. 1,631 / Kg.
Exports to France
Add: Freight Rs. 1,362 / Kg.
Exports to France
Add: Freight Rs. 1,357 / Kg.
Innoveo Solution:
Clubbing of multiple orders; Fulfilment warehouse in both importers’ and exporters’ countries; Aggregate freight forwarders in both importers’ and exporters’
countries
IES SAS saves 10.18%
Traditional transaction Innoveo transaction
Use of Funds
Fixed Asset
• Warehouse Assets (3.9%)
• Office Assets (1.9%)
Operating
Capital
• Compensation (35.7%)
• Marketing Expense (1.9%)
• Operational Expense (50.2%)
• Professional Fees (1.8%)
• Travelling Expense (4.6)
Innoveo Exports till now
Aug, 2020
Started with the vision of exporting Indian
MSME products in the B2B space.
2021
Ventured into Essential Oils
& Natural Ingredients space.
Added 100+ suppliers, generated
international enquiries, sent samples to
buyers. Executed several aspects of an
exports transaction.
2021
AcquiringVITAE
ESSENTIA added a
manufacturing unit
Feb, 2022
Completed 1st merchant
export (INR 1.5 Lakh)
Observed several issues in
exports process for MSMEs
i.e. Low MOQ, Price opacity &
Communication barrier
May, 2022
Developed integrated
solution & went for
Fund raising
Traditional commodity exports
Innoveo for commodities
MSME
Manufacturer
Merchant
Exporter
Wholesaler
Exports
transaction
SME Industry
Agri products exports market supply chain for commodities
Price Opacity
1
Communication & Cultural Barriers
3
Low order - qty trades
2
PriceTrend Index
Provides price transparency &
access to low order qty. trades.
Pre-Sale : Issues of commodity importers while procuring from Indian MSMEs
Innoveo solutions
for importers
Marketplace
Fulfillment centers cater to low order -
quantity logistics while maintaining
cheaper prices.
Business Embassy
Better service with a local POC
providing customer support.
Issues faced by commodity
importers while procuring
from Indian MSMEs
Pre-Sale Issue 2: Low order - quantity trades from MSME importers
MSME manufacturers who can only honour low order - quantity trades due to small scale operation
Merchant exporters who find large order quantity
trades more profitable
Importers / Industry which needs low order - quantity supplies
Aggregation of stock
from MSME
manufacturers
Wholesaler (Importer)
Fulfils low order
quantity trades
Very few ways for MSME buyers to buy lesser quantities from Indian MSMEs as the economics do not work out well for MSME suppliers from India.
B2B Portal
PriceTrend Index
Innoveo Solution
Charges a
premium for
low - order
quantity trade

More Related Content

Similar to Pitch_Deck_InnoveoExports.pptx

Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018
Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018
Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018
ecommcongress
 
ecomulsion-business plan
ecomulsion-business planecomulsion-business plan
ecomulsion-business plan
MuskaanJoshi4
 
International business 1&2
International business 1&2International business 1&2
International business 1&2
Sharun Ichigo
 
Import Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdfImport Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdf
ASM's IBMR- Chinchwad
 
Issue Tree.pptx
Issue Tree.pptxIssue Tree.pptx
Issue Tree.pptx
JAIDEEPKATIYAR1
 
Export An Acient Experties
Export An Acient ExpertiesExport An Acient Experties
Export An Acient Experties
Vinodrai Engineers P Ltd.,
 
India Beauty Market
India Beauty MarketIndia Beauty Market
India Beauty Market
argus_cmpo
 
How to start an export import business
How to start an export import businessHow to start an export import business
How to start an export import business
Sunil Garg, Engineering and Management Professional
 
DealerAnt & Aeco - Profile.pdf
DealerAnt & Aeco - Profile.pdfDealerAnt & Aeco - Profile.pdf
DealerAnt & Aeco - Profile.pdf
Sunil kumar
 
Babykart - Business plan
Babykart - Business planBabykart - Business plan
Babykart - Business plan
Aditya Chaturvedi
 
Baby kart
Baby kartBaby kart
Baby kart
Pankaj Garg
 
Import Export Certification
Import Export CertificationImport Export Certification
Import Export Certification
Vskills
 
Found_658833744_433664.ppt
Found_658833744_433664.pptFound_658833744_433664.ppt
Found_658833744_433664.ppt
Sunil kumar
 
Trade Flock - Import Cosmetics from China
Trade Flock - Import Cosmetics from ChinaTrade Flock - Import Cosmetics from China
Trade Flock - Import Cosmetics from China
Poonam Mittal
 
Ftf pitch deck june 2014
Ftf   pitch deck june 2014Ftf   pitch deck june 2014
Ftf pitch deck june 2014Mehul Patel
 
Export marketing assignment
Export marketing assignmentExport marketing assignment
Export marketing assignmentGaurav Jadhav
 
Top Strategies for Business Growth in 2015 - CCI Malaga Business Workshop
Top Strategies for Business Growth in 2015 - CCI Malaga Business WorkshopTop Strategies for Business Growth in 2015 - CCI Malaga Business Workshop
Top Strategies for Business Growth in 2015 - CCI Malaga Business Workshop
Chamber of Commerce and Industry of Western Australia
 
Idea for Start Up.pptx
Idea for Start Up.pptxIdea for Start Up.pptx
Idea for Start Up.pptx
UtkarshSingh600554
 

Similar to Pitch_Deck_InnoveoExports.pptx (20)

War Room
War RoomWar Room
War Room
 
Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018
Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018
Cross-border e-commerce - Cuneyt Erpolat @ eCommCongress 2018
 
ecomulsion-business plan
ecomulsion-business planecomulsion-business plan
ecomulsion-business plan
 
International business 1&2
International business 1&2International business 1&2
International business 1&2
 
Import Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdfImport Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdf
 
Issue Tree.pptx
Issue Tree.pptxIssue Tree.pptx
Issue Tree.pptx
 
Export An Acient Experties
Export An Acient ExpertiesExport An Acient Experties
Export An Acient Experties
 
India Beauty Market
India Beauty MarketIndia Beauty Market
India Beauty Market
 
How to start an export import business
How to start an export import businessHow to start an export import business
How to start an export import business
 
DealerAnt & Aeco - Profile.pdf
DealerAnt & Aeco - Profile.pdfDealerAnt & Aeco - Profile.pdf
DealerAnt & Aeco - Profile.pdf
 
Babykart - Business plan
Babykart - Business planBabykart - Business plan
Babykart - Business plan
 
Baby kart
Baby kartBaby kart
Baby kart
 
Import Export Certification
Import Export CertificationImport Export Certification
Import Export Certification
 
Found_658833744_433664.ppt
Found_658833744_433664.pptFound_658833744_433664.ppt
Found_658833744_433664.ppt
 
Trade Flock - Import Cosmetics from China
Trade Flock - Import Cosmetics from ChinaTrade Flock - Import Cosmetics from China
Trade Flock - Import Cosmetics from China
 
Ftf pitch deck june 2014
Ftf   pitch deck june 2014Ftf   pitch deck june 2014
Ftf pitch deck june 2014
 
Export marketing assignment
Export marketing assignmentExport marketing assignment
Export marketing assignment
 
retail sector
retail sectorretail sector
retail sector
 
Top Strategies for Business Growth in 2015 - CCI Malaga Business Workshop
Top Strategies for Business Growth in 2015 - CCI Malaga Business WorkshopTop Strategies for Business Growth in 2015 - CCI Malaga Business Workshop
Top Strategies for Business Growth in 2015 - CCI Malaga Business Workshop
 
Idea for Start Up.pptx
Idea for Start Up.pptxIdea for Start Up.pptx
Idea for Start Up.pptx
 

Recently uploaded

April 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products NewsletterApril 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products Newsletter
NathanBaughman3
 
Cracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptxCracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptx
Workforce Group
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
balatucanapplelovely
 
FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134
LR1709MUSIC
 
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdfMeas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
dylandmeas
 
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdfSearch Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Arihant Webtech Pvt. Ltd
 
What are the main advantages of using HR recruiter services.pdf
What are the main advantages of using HR recruiter services.pdfWhat are the main advantages of using HR recruiter services.pdf
What are the main advantages of using HR recruiter services.pdf
HumanResourceDimensi1
 
Unveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdfUnveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdf
Sam H
 
BeMetals Presentation_May_22_2024 .pdf
BeMetals Presentation_May_22_2024   .pdfBeMetals Presentation_May_22_2024   .pdf
BeMetals Presentation_May_22_2024 .pdf
DerekIwanaka1
 
3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx
tanyjahb
 
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptxCADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
fakeloginn69
 
Improving profitability for small business
Improving profitability for small businessImproving profitability for small business
Improving profitability for small business
Ben Wann
 
Digital Transformation and IT Strategy Toolkit and Templates
Digital Transformation and IT Strategy Toolkit and TemplatesDigital Transformation and IT Strategy Toolkit and Templates
Digital Transformation and IT Strategy Toolkit and Templates
Aurelien Domont, MBA
 
falcon-invoice-discounting-a-premier-platform-for-investors-in-india
falcon-invoice-discounting-a-premier-platform-for-investors-in-indiafalcon-invoice-discounting-a-premier-platform-for-investors-in-india
falcon-invoice-discounting-a-premier-platform-for-investors-in-india
Falcon Invoice Discounting
 
What is the TDS Return Filing Due Date for FY 2024-25.pdf
What is the TDS Return Filing Due Date for FY 2024-25.pdfWhat is the TDS Return Filing Due Date for FY 2024-25.pdf
What is the TDS Return Filing Due Date for FY 2024-25.pdf
seoforlegalpillers
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
Lital Barkan
 
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).pptENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
zechu97
 
Introduction to Amazon company 111111111111
Introduction to Amazon company 111111111111Introduction to Amazon company 111111111111
Introduction to Amazon company 111111111111
zoyaansari11365
 
Premium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern BusinessesPremium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern Businesses
SynapseIndia
 

Recently uploaded (20)

April 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products NewsletterApril 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products Newsletter
 
Cracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptxCracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptx
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
 
FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134
 
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdfMeas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
 
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdfSearch Disrupted Google’s Leaked Documents Rock the SEO World.pdf
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
 
What are the main advantages of using HR recruiter services.pdf
What are the main advantages of using HR recruiter services.pdfWhat are the main advantages of using HR recruiter services.pdf
What are the main advantages of using HR recruiter services.pdf
 
Unveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdfUnveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdf
 
BeMetals Presentation_May_22_2024 .pdf
BeMetals Presentation_May_22_2024   .pdfBeMetals Presentation_May_22_2024   .pdf
BeMetals Presentation_May_22_2024 .pdf
 
3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx3.0 Project 2_ Developing My Brand Identity Kit.pptx
3.0 Project 2_ Developing My Brand Identity Kit.pptx
 
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptxCADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
 
Improving profitability for small business
Improving profitability for small businessImproving profitability for small business
Improving profitability for small business
 
Digital Transformation and IT Strategy Toolkit and Templates
Digital Transformation and IT Strategy Toolkit and TemplatesDigital Transformation and IT Strategy Toolkit and Templates
Digital Transformation and IT Strategy Toolkit and Templates
 
falcon-invoice-discounting-a-premier-platform-for-investors-in-india
falcon-invoice-discounting-a-premier-platform-for-investors-in-indiafalcon-invoice-discounting-a-premier-platform-for-investors-in-india
falcon-invoice-discounting-a-premier-platform-for-investors-in-india
 
What is the TDS Return Filing Due Date for FY 2024-25.pdf
What is the TDS Return Filing Due Date for FY 2024-25.pdfWhat is the TDS Return Filing Due Date for FY 2024-25.pdf
What is the TDS Return Filing Due Date for FY 2024-25.pdf
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
 
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).pptENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
ENTREPRENEURSHIP TRAINING.ppt for graduating class (1).ppt
 
Introduction to Amazon company 111111111111
Introduction to Amazon company 111111111111Introduction to Amazon company 111111111111
Introduction to Amazon company 111111111111
 
Premium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern BusinessesPremium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern Businesses
 

Pitch_Deck_InnoveoExports.pptx

  • 1. An MSME marketplace across boundaries
  • 2. MSME exporters in India Inadequate marketing & client service Constraints in funds and a dearth of available personnel with required skill set. Access to unexplored markets No access to low MOQ importers No portal that directly connects MSME exporters to Low MOQ importers. MOQ matching Complicated exports process Novice exporters usually find the exports procedure cumbersome. Export documentation & logistics service Credit Risk MSME exporters, even after getting enquiries, do not have sufficient credit to execute exports. Trade finance (Pre- shipment credit) Inability to trust buyers 3rd Party Buyer verification is challenging & payment terms often not in favor of sellers. Escrow & Insurance; 3rd party verifiers Issues of MSME exporters Innoveo for MSME exporters Issues of MSME exporters Pre-sale Post-sale
  • 3. Issue: No way for the buyer to understand market trends as buyers often get a wide range of prices for same quantity. Alibaba, IndiaMart and other competitors do not offer any service for buyers to reduce price opacity. Pre-Sale Issue 1 : Price opacity – inability to understand Indian markets Solution: PriceTrend Index for Commodities
  • 4. Issue: No way for the buyer to find sellers with available stocks and those who cater to their specific quantities Pre-Sale Issue 2 : Inability to find sellers who entertain lower orders Solution: Dynamic Marketplace
  • 5. Pre-Sale Issue 3: Communication & cultural barriers Business embassies representing Indian MSMEs that will market, promote, facilitate transactions and give after sales service enabling trust and long - term relationship with each regions MSME buyers MSME buyers from markets like Europe, Middle East, Korea, Japan, etc. are not comfortable in communicating in English and therefore avoid sharing their requirements. Due to past bad experiences, Indian MSMEs often have bad reputation and therefore, MSME Buyers do not trust new businesses. As Indian MSMEs do not have language experts / translators & since their sales agents aren’t highly skilled, they are not able to reach out to the MSME buyers. Buyer Issues Seller Issues Innoveo Solution
  • 6. Export documentation service Trade finance (Pre- shipment credit) Escrow & Insurance; 3rd party verifiers Post-Sale : Execution of Export Aggregating banks & NBFCs who offer Pre- shipment credit and facilitating service to exporters Dedicated export consultants who prepare & manage documentation as well as be POC for freight forwarders Creating an escrow service for exporters while aggregating insurance companies & 3rd party shipment verification.
  • 7. Sales Commission basis Transaction value in Rs. Lakhs Commission Between 0.1 and 1 2.50% Between 1 and 5 2.25% Between 5 and 10 2.00% Between 10 and 50 1.75% Between 50 and 100 1.50% Between 100 and 500 1.25% Between 500 and 1000 1.00% Between 1000 and above 0.75% Revenue model Other potential streams • Export documentation service (0-1% of revenue) • Commission from Insurance companies • Commission from freight forwarders • Commission from Banks & NBFCs. • SaaS subscription fee for handling complete export process
  • 8. Competitive Landscape Export Consultants Trade Finance B2B E-commerce Exports Logistics End to End EXIM transaction
  • 9. Business Model Commission Merchanting Revenue Model Up-to 2.5% deducted from total revenue of seller 4 to 5% added to sellers price and taken directly from buyer Payment instrument Allows escrow, LC Only telephonic transfer, No LCs Product categories Commodities (Agri & later others) Fruits &Vegetables Logistics Aggregator & facilitator for sellers Facilitator for self Investment Stage Bootstrapped Raised three rounds till now $76.5 M Competition analysis
  • 10. Market size All values are “per year” TAM $5.41b SAM $1,063m SOM $53m NaturalAromatic Compounds Agriculture Products Fruits &Vegetables + Cereals + Spice + Oil Seeds Source:Tradestat | APEDA Exchange | OEC World TAM $169b SAM $5,441m SOM $272m
  • 11. Projected Metrics after first year of Seed Fund • 1000+ Supplier database for 2 • Total no. of inquiries: > 500 • No of potential transactions - 50 export transactions: > 20 in each category • Total potential transaction value through portal after 1 year: > 1 crore • Total potential revenue after 1 year = • Average Turnaround time will be 1 days (Efficiency in logistics + faster communication) Current & Projected Metrics Current Metrics (Merchant Exports) • 500+ Supplier database for Aromatic & Natural Ingredients • 30+ supplier database for Fruits & Vegetables. (After Pivot) • 25+ Exports inquiries gathered from “Campaigns” run in France, Germany, Netherlands, Japan, US, Singapore • 1 End to End export transaction completed with a French company. • Total transaction value conducted – Rs.1,40,000 • Average Turnaround time is > 2 months for a single export transaction (breakage in notes)
  • 12. The road ahead Q1 Q2 Q3 Q4 Aromatic & Natural Products in Europe & the UK Fruits &Vegetables in Europe & the UK Spices in Europe Cereals in the UK Business Embassy in Europe & the UK Oil Seeds | Herbal Products in Europe Spices in the UK Q1 Q2 Q3 Q4 Fruit &Veg, | Cereals in UAE Business Embassy in UAE Herbal Products | Spices in USA Business Embassy in USA Oil Seeds andAromatic | Natural Products in USA Aromatic & Natural Products | Spices in UAE 2023 2022
  • 13. OurTeam Vaibhav Sharma Founder & CEO Vaibhav holds a Masters degree in Innovation and Entrepreneurship with a Bachelors degree in Information Technology. With prior experience as a marketing strategy consultant, he is passionate about bringing the Indian MSME storefront to the world market. He enjoys Indian classical music and prefers to unwind with a good book. Rafiq Shaikh Co - Founder & MD Rafiq holds a Masters degree in Business Administration with a Bachelors degree in Electronics. He has been an Exotic Derivative Trader for Indian and MNC banks. Fascinated by the Indian Agriculture sector, he has gotten into the Natural Aromatic Compounds market with a manufacturing unit. He enjoys history fiction as well as travelling.
  • 16. Issue 2.2: Better price with Innoveo in Low order - quantity trades Exports transaction of a low order – quantity trade | IES SAS, France requires 10 Kg. of CentellaAsiatica powder from India Cultivator (Source) Cost: 100 Kg. Rs. 233 / Kg. Add: Margin 5% Sell: 100 Kg. Rs. 245 / Kg. HCNO (Exporter) Buy: 100 Kg. Rs. 245 / Kg. Add: Margin 18% Sell: 100 Kg. Rs. 289 / Kg. Wholesale (Importer) Buy: 100 Kg. Rs. 1,651 / Kg. Add: Margin 10% Sell: 10 Kg. Rs. 1,816 / Kg. IES SAS (End User) Buy: 10 Kg. Rs. 1,816 / Kg. Cultivator (Source) Cost: 100 Kg. Rs. 233 / Kg. Add: Margin 15% Add: IE Commission 2.5% Sell: 100 Kg. Rs. 274 / Kg. IES SAS (End User) Buy: 10 Kg. Rs. 1,631 / Kg. Exports to France Add: Freight Rs. 1,362 / Kg. Exports to France Add: Freight Rs. 1,357 / Kg. Innoveo Solution: Clubbing of multiple orders; Fulfilment warehouse in both importers’ and exporters’ countries; Aggregate freight forwarders in both importers’ and exporters’ countries IES SAS saves 10.18% Traditional transaction Innoveo transaction
  • 17. Use of Funds Fixed Asset • Warehouse Assets (3.9%) • Office Assets (1.9%) Operating Capital • Compensation (35.7%) • Marketing Expense (1.9%) • Operational Expense (50.2%) • Professional Fees (1.8%) • Travelling Expense (4.6)
  • 18. Innoveo Exports till now Aug, 2020 Started with the vision of exporting Indian MSME products in the B2B space. 2021 Ventured into Essential Oils & Natural Ingredients space. Added 100+ suppliers, generated international enquiries, sent samples to buyers. Executed several aspects of an exports transaction. 2021 AcquiringVITAE ESSENTIA added a manufacturing unit Feb, 2022 Completed 1st merchant export (INR 1.5 Lakh) Observed several issues in exports process for MSMEs i.e. Low MOQ, Price opacity & Communication barrier May, 2022 Developed integrated solution & went for Fund raising
  • 19. Traditional commodity exports Innoveo for commodities MSME Manufacturer Merchant Exporter Wholesaler Exports transaction SME Industry Agri products exports market supply chain for commodities
  • 20. Price Opacity 1 Communication & Cultural Barriers 3 Low order - qty trades 2 PriceTrend Index Provides price transparency & access to low order qty. trades. Pre-Sale : Issues of commodity importers while procuring from Indian MSMEs Innoveo solutions for importers Marketplace Fulfillment centers cater to low order - quantity logistics while maintaining cheaper prices. Business Embassy Better service with a local POC providing customer support. Issues faced by commodity importers while procuring from Indian MSMEs
  • 21. Pre-Sale Issue 2: Low order - quantity trades from MSME importers MSME manufacturers who can only honour low order - quantity trades due to small scale operation Merchant exporters who find large order quantity trades more profitable Importers / Industry which needs low order - quantity supplies Aggregation of stock from MSME manufacturers Wholesaler (Importer) Fulfils low order quantity trades Very few ways for MSME buyers to buy lesser quantities from Indian MSMEs as the economics do not work out well for MSME suppliers from India. B2B Portal PriceTrend Index Innoveo Solution Charges a premium for low - order quantity trade

Editor's Notes

  1. Add in note: Top players in A&N through customs data analysis
  2. => Average Turnaround time => samples & certificates + standards = 7 days, testing of the sample = 10 days, time to send samples = 10 days, negotiation of incoterm = 1 week, time taken to give final price = 10 days, Purchase order = 2 days, shipment process = 20 days =>