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IderaOS , ListBuy

E commerce software with escrow payment service

USA, Massachusetts
Market: Internet and IT, Logistics and warehouses, Financial services, Another
Stage of the project: Idea or something is already done

Date of last change: 01.05.2020
Min investment
$  50.000
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Total required
$ 150.000
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Idea

Social commerce sellers in emerging economies find it hard to receive payments and shipping products while selling online, be it Instagram, Facebook or twitter as those platforms are not built with merchants from those countries in mind. Leveraging our platform can both automate local payment and shipping for merchants from those countries that sell on those social platforms.

Current Status

Merchants
Right now we currently have over 100 active users on our private beta program actively using the platform to sell and deliver. We also have over 5000 users on our waiting list.

Delivery Companies
We currently have 10 leading logistics companies in Nigeria as our customers.They get customers (merchants) via our platform and help them deliver their products.

We are working on a partnership with two banks in Nigeria Sterling Bank and United Bank for Africa to train their customers across Nigeria and Africa on digital and business skills needed to re-purpose their businesses and also deploy our products for them. This partnership will expose us to about 14 million potential customers via the United Bank for Africa and sterling network

Market

According to a 2017 survey by Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), Nigeria currently has over 98.3 million active internet users, which is the largest internet-using population in Africa. Currently MSMES are faced with the high cost of setting up an online store. Shopify charges around $30 per month for basic plan while we charge $15. MSMES are also faced with terrible logistics systems and poor local to international payment solutions. They would gladly use an affordable service like IderaOS, that collectively solves these issues.

By September 2020, we aim to have on-boarded 5000 active users with at least 2000 using our ‘Starter’ (pay as you sell plan), and a 1500 minimum each for both our ‘Basic’ and ‘Premium’ subscription plan. This translates into about 1.5 million dollars in revenue.

Our mid-term goal is to have a market share of 20% in the Nigerian market by the year 2024. This translates into 50,000 active users with 20,000 on the ‘Starter’ and 15000 each on the ‘Basic’ and ‘Premium’ subscription plan. This then translates to about 15 million dollars. We plan to scale and grow by aggressively expanding our services across Nigeria and Africa.

Problem or Opportunity

Social commerce sellers in emerging economies find it hard to receive payments and shipping products while selling online, be it Instagram, Facebook or twitter as those platforms are not built with merchants from those countries in mind. Leveraging our platform can both automate local payment and shipping for merchants from those countries that sell on those social platforms.

Solution (product or service)

Our Solution: Ecommerce software with escrow payment service.

Our company is making eCommerce software solutions that work in emerging markets affordable, secure and accessible. Our product is ListBuy; a transactional-based ecommerce software platform that enables retailers and individuals to create their online stores, sell virtually anywhere, while accepting all kinds of local payments and ecommerce delivery to ship to their customers. Listbuy ensures that customers get what they buy by leveraging our product verification system and escrow service that is built in for every merchant’s store. This way we're making online selling more secure for customers and merchants.

The future of business is online but even with ecommerce content management systems like Wordpress, Shopify and OpenCart, ecommerce is still a pain in Nigeria and Africa.

Our platform is built to suit local African online shoppers by providing an easy and convenient online shopping experience. Our shopping cart e-commerce platform has a lot of local African mobile payment and delivery/logistics options for businesses to contract with.

Here is our first MVP. Our goal is to be a mobile ecommerce store builder as we continue to iterate this version as we are in our pre-seed stage.

https://listbuy.ideraos.com/register

Competitors

Competitors: Ecwid, Shopify, WooCommerce, Bigcommerce, Squarespace
Future competitor: Alibaba because they are shifting their interests to Africa.
Most feared: Google marketplace. This is because Internet policies in Africa differ from country to country and some are more restricted than others.

Advantages or differentiators

The current alternatives that exist today are too expensive and unyielding.
Konga, Jumia, Shopify, WooCommerce all don't support provide a local ecosystem to support these business owners.

Running an online business in Africa is not just about building an online eCommerce store on any of this platforms, that might work elsewhere, but not in Africa because we don't have the necessarily supported ecosystem. An eCommerce business owner need an ecosystem that will be conducive for them to operate their business anywhere in the world, which is what IderaOS is providing. A one stops shop for setting up and running your business online, while making use of our marketplace ecosystem.

Business Model. We offer a "pay as you sell" and "subscription" model making us really affordable to use than our competitors' expensive subscription plan. Also, We provide an interconnected ecosystem that takes care of everything a business needs including Local shipping, payment solutions, and inventory management.

Taking granular view of growth
Instead of seeking to build a presence across entire countries, we are targeting the fastest-growing cities or city clusters—urban centers where per capita income and consumption spending far exceeds the national average. A city-based strategy is essential in Africa, given the rapid pace of urbanization and the differences in growth rates even among cities within the same country

Partnership (Building the ecosystem):
We are in business partnership with over ten delivery companies like Send.ng, Max.ng, UPS and five payment companies like Paystack, Voguepay, Flutterwave e.t.c consuming their API’s to include payment and logistics in our product to increase our value offering to our customers.

Finance

2020 (Quarterly) 2nd 3rd 4th 1st (2021)

Users 2000 4000 6000 8000

Complete order 1000 2000 3000 4000

Avg sales per cust $200 $200 $200 $200

COMPANY REVENUE @15% $30,000 $60,000 $90,000 $120,000

- Cost of Revenue $1000 $2000 $3000 $4000

Gross Profit $29,000 $59,000 $87,000 $116,000

OPEX
- Sales & Marketing $500 $500 $500 $500

- Customer Service $200 $200 $200 $200

- Product Development $4000 $4000 $4000 $4000

- Misc. $2000 $2000 $2000 $2000

TOTAL OPEX $6700 $6700 $6700 $6700

EBIT $22,300 $52,300 $80,300 $109,300

Business model

We charge everyone in the ecosystem 15% all together to use the platform

Payment Providers 5%
Delivery companies 5%
Merchant Per order 5%

Money will be spent on

Team expansion
Research and Development
Office space
sales and marketing

Team or Management

Risks

Merchants
Right now we currently have over 100 active users on our private beta program actively using the platform to sell and deliver. We also have over 5000 users on our waiting list. Not been able to build on this will be a risk

Delivery Companies
We currently have 10 leading logistics companies in Nigeria as our customers.They get customers (merchants) via our platform and help them deliver their products. Not been able to add more delivery partners will be a risk

We are working on a partnership with two banks in Nigeria Sterling Bank and United Bank for Africa to train their customers across Nigeria and Africa on digital and business skills needed to re-purpose their businesses and also deploy our products for them. This partnership will expose us to about 14 million potential customers via the United Bank for Africa and sterling network. Weak government policy's are always a risk in developing market

Incubation/Acceleration programs accomplishment

RI Masschallenge
Y Combinator School

Won the competition and other awards

Top 10 regional finalist East coast regional Startup world-cup USA 2019
Tony Elumelu entrepreneurship program 2019
Masschallenge Finalist

Photos

Photo 1 - IderaOS , ListBuy

Product Video

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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