Description
SuprDaily was presented in all the chapters and received considerable interest from the Members.
The company is raising a total round of INR 1.5 Crores at pre-money valuation of INR 20 Crores.
The company is raising a total round of INR 1.5 Crores at pre-money valuation of INR 20 Crores.
The total ask from Lead Angels is INR 40 Lakhs (extendable on basis of commitments received). The minimum commitment is INR 3 Lakhs. In case commitments exceed the ask amount, allotment will be proportionate.
Details of the other participating investors
– INR 80 Lakhs committed from Venture Catalysts
– INR 30 Lakhs invested by Individual Investors (Lead Angels Delhi Member + 1 more individual)
Updates about the company:
1. Subscription based Daily needs delivery at your doorstep || fulfilling over 40,000 orders per month || 90% Daily Repeat Customers || Currently deliver to 100+ buildings across 10 regions in Mumbai
2. Have a Strategic Partnership with Amul Milk
3. Shortlisted by Y-Combinator for the January 2017 Batch with an Investment Commitment of USD 100k by Y-Combinator
4. Currently backed by SnapDeal Founders – Kunal Bahl and Rohit Bansal
We will accept commitments from 2nd December (today) to 4th December 8 pm 2016 (Sunday).
Brief updates of SuprDaily Investor Call:
a) How will things pan out with Y-Combinator happening simultaneously – Only one Co-founder (Puneet) who handles Product and Marketing will be going to the US for a period of 3 months; the other Co-founder (Shreyas) will join in specifically for the Demo day. Shreyas and Rohit who handle Operations will continue to focus on Business growth and expansion to achieve the target of 4000 orders/day projected for Y-Combinator Demo day (march 2017)
Investment will happen in Indian Incorporated company, post which the US Inc. company will be formed which will own 100% of the Indian company and shares of the US company will be allocated on a pro-rata basis to Indian Investors
b) Growth has been 10% M-O-M, any particular reason for this – Was a conscious call taken by company to figure out best growth strategy and have efficient operations. They have figured out the same and now growth will be ramped up with multiple areas being taken on simultaneously
c) Competitive Scenario and how will model work across cities with different dynamics
- Daily Ninja is working on building a network of networks by acquiring milkmen who are already delivering to a certain region, so if a Milkman ever drops out, Daily Ninja would lose out on the customer base as well
- Supr Daily has taken a conscious call of going about building a supply chain wherein they will deliver to the end customer directly which means the end consumer will be a customer of Supr Daily directly
- On the man-power front, Supr Daily employs individuals on a part-time basis who have other engagements during their day jobs and no specific skill sets which gives such individuals an opportunity to earn upto 50% additional income
- Since paper delivery till date happens by a work force which is employed part time across the country, they believe that a similar model would work out across cities for Milk delivery as well
d) Nature of Partnership with Amul – Supr Daily positions itself as a direct farm-to-home company which means they get milk directly from multiple manufacturers such as Amul, Mother Dairy, etc., however, the partnership with Amul is more Strategic in nature wherein Amul also endorses Supr Daily as their official delivery channel in their Marketing and Supr Daily is also free to use Amul’s name in all Marketing/Promotion campaigns
Amul as a manufacturer is itself looking for organized delivery channels to keep a check on adulteration since any change in quality of the milk for a customer will reflect on Amul since the customer does not understand that adulteration happens in the supply chain and not by Amul
e) Various touch points with customer – A customer can interact with Supr Daily not only through their app, but also through additional means such as over call and WhatsApp. They are currently seeing a healthy mix of all 3 modes of communication.
Additionally, Supr Daily gives a custom made bag to each customer who has a subscription of one month with the Supr Daily logo on it which customers can use to hang/place outside their doors to collect deliveries. This gives a certain level of branding for the remaining people to see as well as a continuous touch point for existing customers
f) Since Adulteration will be a major USP, how will Supr Daily ensure control on adulteration with scale
- Since Supr gets milk directly from manufacturer, there will be no adulteration in this transfer; post this Supr controls the transportation from the distribution centre to the building gate which leaves no scope for the delivery boys to do any adulteration
- Since the milkman controls entire chain, they have an incentive to adulterate and increase quantity and make additional money. In Supr’s case, the delivery boy has no incentive to adulterate and since they get a payment from Supr and not the customer directly, there is no direct incentive to adulterate in their case
- Supr also has Quality audits to ensure there is no adulteration and if a customer has any worry, since Supr is directly tied up with all manufacturers, they can call for a quality check from the manufacturer to the customer’s place directly as well
g) Plan for scaling – By the end of year 1 post funding, Supr plans to achieve a target of 10000 orders/day which will make them cash flow positive, post which they will only go for Institutional funding to expand to other cities pan India
h) Effects of demonitization – As per the founders, the recent event of demonitization in no way affected their numbers, but infact helped convert more customers from a cash payment to online payment. They are confident of the fact that Milk is a daily consumption item and the market is in no way affected by events such as Recession or Demonitization
Most of the queries regarding the Scalability and Expansion Plan were clarified by Puneet (co-founder, Supr Daily) on the call. Any pending individuals queries will be answered shortly.
The Legal & Financial DD which will be shared with the LA Investors post commitment.
Venture Catalysts will be sharing the finalized Term Sheet and SHA.
