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THE CHALLENGE Spends 50% of income on food 16 million South African slum dwellers High transport cost to shop in the city Local spaza shop prices high.

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Presentation on theme: "THE CHALLENGE Spends 50% of income on food 16 million South African slum dwellers High transport cost to shop in the city Local spaza shop prices high."— Presentation transcript:

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2 THE CHALLENGE Spends 50% of income on food 16 million South African slum dwellers High transport cost to shop in the city Local spaza shop prices high POVERTY PREMIUM

3 Social capital: 50 to 100 households per crèche Buying pattern: Homogenous. Maize, sugar, oil ALL PAYING A PREMIUM INDIVIDUALLY

4 SOLUTION 350 people

5 Crèche Family Groups Spaza partners Place order on mobile Aggregated order bundle to supplier Discounted products delivered to spazas Large Retailer Supplier 50 to 100 families per crèche Trade rebate & settlement discount Commission Informal trader distributes locally Current monthly shop Commission Family pays on collection using e-wallet

6 DISTRIBUTION ?

7 Key distributor Supplier Spaza shop Low order volumes. Expensive distribution Local storage

8 DISTRIBUTION Key distributor Supplier Spaza shop Low order volumes. Expensive distribution

9 FINANCIAL IMPACT Breakeven: 128 registered crèches, 75% families online 10 crèches 58 crèches 128 crèches 238 crèches 378 crèches 3 crèches required to make model economically viable

10 5Yr ACTION FIGURES > 18 000 female clients 378 Spazas in distrib. chain 378 Crèches reached 75 direct jobs created Better nutrition to 28 000 children $590 000 to crèches $590 000 to spazas $3 million food saving 10% saving on monthly spend 15% increase in crèche income SOCIAL OUTCOMES Improve Crèches Reduce Poverty Improve Nutrition

11 20142015 Q12015 Q22015 Q32015 Q4 UNLOCKING VALUE Pilot Phase II Partnership: Distributor MVP & testing Partnership: Supplier Partnership: Crèches & Spazas Pilot Phase I Marketing drive Commercial launch 5 Creche & 5 Spazas partners Distributor partner secured Pilot Phase I: Distribution costs validated Bootstrapped GSVC Seed capital Supplier thresholds validated Basic func. spec for MVP complete ASK: Investment of $90 000 for 22.5% IRR Traction to date Operational structure

12 TEAM Nokwethu Khojane Co-Founder Business Development Business Intelligence MBA Lauren Drake Co-Founder Finance Operations MBA Diana Spicer Co-Founder Technology Development MBA Maryla Masojada Co-Founder Supplier Relationships Entrepreneur Team Experience 35 years in FMCG 2 MBA majors in ECD 5 businesses launched 25 years in BoP market

13 ANY QUESTIONS?


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