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BARU

Use Augmented Reality to resize furniture before buying

USA, New York
Market: Virtual and Augmented Reality
Stage of the project: Operating business

Date of last change: 01.07.2020
Min investment
$  50.000
Show contacts
Total required
$ 1.000.000
Rating
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Idea

BARU is a supply-chain solution and marketplace that makes furniture shopping for city apartments easier.

Shoppers resize furniture with Augmented Reality before buying. We deliver the custom furniture in under 2 weeks. The furniture is made in customers' hometowns using the underused robotics owned by cabinet and millwork workshops.

Our revolutionary operating model avoids most of the inventory management and distribution activities that are incurred in furniture retailing. Those activities typically consume 50% of the retail price.

Current Status

BARU has shattered our previous two-week sales record by recently selling $5,000 of product without having turned on our marketing engine. Imagine the sales when people begin to find us!

We're raising funds to scale sales and operations.

Market

1. Consumers in homes that are in sizes that are challenging to furnish.
2. Interior designers needing specific custom products for projects.
3. Businesses who need product sets with similar designs but in a large number of different sizes.

$18 billion of wood furniture is purchased annually in the United States.

Problem or Opportunity

Problem 1. Consumers often struggle to find furniture in the right size and configuration.
Problem 2. The global supply chain for wood furniture products is unsustainably inefficient. 50% of the retail dollar is spent on inventory management and distribution.
Problem 3. Expensive CNC machines (manufacturing robotics) are commonly highly underutilized.

Solution (product or service)

Solution 1. BARU uses Augmented Reality as a consumer UI and sizing controller for custom product manufacturing using robotics.
Solution 2. BARU uses existing manufacturing facilities' idle capacity in the customers' hometowns to decrease shipping costs and eliminate finished goods inventory.
Solution 3. We rent idle capacity on manufacturing machines in the customers' hometowns to make custom products. Local manufacturing increases delivery speed and decreases CO2 emissions from transportation.

Competitors

Every other furniture retailer competes with BARU.

However, they are mostly reliant on long supply chains with centralized mass-production manufacturing sites that produce high volumes of standardized products. They will rarely produce a customized product for a buyer, and if they do accept custom orders, they are slow to deliver and very costly.

BARU is the first to put an easy-to-use and economical customer interface on local manufacturing capacity for fast and affordable custom goods.

Despite its competitive prices, because BARU avoids inventory and complex logistics costs, we can use higher-grade materials and offer more choices than most retailers.

Advantages or differentiators

There are four reasons why BARU’s time has come:

1. Shoppers have become accustomed to and want fast purchasing convenience. But it’s often difficult to find furniture in the size needed. BARU makes buying custom furniture easy and affordable.

2. Software-driven manufacturing automation is underused in wood workshops throughout the United States. BARU uses that capacity.

3. Using Augmented Reality as a tool to control manufacturing is now feasible. And we believe that product customization is one of the most powerful uses of AR technology. BARU built that technology.

4. A grown man's weight in CO2 emissions is avoided for every bedroom dresser that is made in your hometown instead of overseas. BARU helps the environment.

Finance

BARU sells custom wood furniture. The furniture is made after the purchase using idle manufacturing assets in the customers' hometowns.

BARU's cost of goods sold includes materials for production and production services from our manufacturing network partners.

Selling costs are related to e-commerce and marketing. Some product development costs and technology improvements will also be incurred.

At scale, EBITDA is estimated to be up to 20% of sales.

Business model

BARU has the opportunity to be selling $1 billion of furniture in 5 years.

We plan to have 200 workshops in our network in the largest 60 metropolitan areas in the US and Europe. Over 250 million residents live in those regions.

With just four hours of machine time working for BARU, the 200 workshops will be able to make over $1 billion of custom furniture.

Money will be spent on

2020 Use of Funds
65% Sales & Marketing
19% Technology Improvements
16% Administrative and Legal

Offer for investor

Convertible SAFE with a $5.5M valuation cap, 20% discount, pro-rata rights

Team or Management

Risks

1. If we can't find the right marketing message that resonates with customers we will underperform or fail.

2. If we cannot iterate and respond to market information faster than competitors, we may be overtaken by a competitor. That might cause the development of our marketplace and platform’s economic network effects to fail or be weak.

3. If the COVID-19-induced economic recession is prolonged and consumers choose to not buy furniture or only buy the furniture at prices at which we cannot compete, we will likely fail.

Incubation/Acceleration programs accomplishment

not applicable

Won the competition and other awards

not applicable

Invention/Patent

Utility patent pending for methodology and technology

Photos

Photo 1 - Use Augmented Reality to resize furniture before buying

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