Description
Based on the interest we have received across chapters for Belita we are now going ahead with this investment.
We will accept commitments from 12th June 8pm (today) to 15th June 8pm (Monday). Please note your commitment can only be withdrawn if the Deal Lead withdraws his commitment.
Minimum commitment is 3 Lacs, there is no cap on the maximum commitment.
In case of over subscription, the shares will be allotted proportionately and/or on a first come first served basis in consultation with the deal lead.
Many thanks to Supreet for volunteering his time as Deal Lead.
Short summary of investor call held on 10th June:
- Pivoting to an Uber model with freelance stylists
- Currently do 1000 services in a month and want to scale up to 3000 a month in the next 6 months and upto 20000-25000 in a year.
- Revenue model is the pre decided fee of 30-35% of the total cost charged for the service.
- The team is well experienced and focused on Belita
- Quite a bit of the technology part, which is a very large enabler in the business, is yet to be executed and this is seen as a potential risk
- Supreet believes that the team, the market and the environment is right to place your bet on Belita
- They need this money (3.25 cr) to:
- Land grab the stylists and expand the market of free lance stylists
- Technological change
- Belita is not a price play but more of a convenience play
- The technology development is out sourced while the managing is in-house
Questions raised during the call and answers by Co-Founder Akshay Jain:
1. How many beautician/stylists do we have in Mumbai ?
1. We had 20 stylist till May. Now increased to 30. We are only in Mumbai at 4 specific locations.
2. During FY15-16 you target 6cr in revenues. How much has already been achieved?
2. With work stylist we did around 26Lac in two months. We will be adding stylist in current locations and shall add around 6 more locations.
3. Business model is an aggregator or service provider?
3. Its a controlled aggregator model. Not a open aggregator where its listing and lead generation, but we are controlling quality and delivery experience yet empowering stylist to earn high and when they want (like Uber).
4. Is your costing the same as a saloon? or less?
4. Service price is lower than the Indian brand Salons (Enrich, Lakme, etc) with similar premium experience in terms of product, stylist experience, service level, professionalism. Price could be bit higher than local next door salons.
Updated Deal Terms:(figures quoted in business plan may be dated)
2.9 Cr already committed by Seed investor IndiaQuotient and other individual investor at a 14Cr Pre Money valuation. Available for Lead Angels is in the region of 30-60 Lacs.
