GrowMe - · PDF fileWe have followed psychographics (personality and lifestyle) based market segmentation as a ... Hammam Adam PMO Sudanese [email protected]

GrowMePitch Presentation (V 2.9)

September 2017

2

What is GrowMe?

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GrowMe is a revolutionary and life-changing platform aiming to improve the people’s life, by providing the ability to the experts to independently work and tutor/ train on their free time, whenever and wherever suits them.

2

Vision and Mission

Vision Redefine the global learning experience and enhance people’s life

Mission Develop and operate a revolutionary and life-changing platform aiming to improve the people’s life, by providing the ability to the experts to independently work and tutor on their free time, whenever and wherever suits them.

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4

The Problem

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Unfulfilled Demand• 40% of white collar labor market undergo

professional training on yearly basis.

Traditional Channels• 18% of overall university and school students are

estimated to use traditional tutoring services yearly basis.

Platform Efficiency • No efficient platform has been implemented in the

market yet to capitalize on people’s skills.

No major breakthrough has been witnessed to improve the learning and self-development process byutilizing the digital platforms to capitalize on people’s skills and talents. The process of hiring the tutorsand obtain training is still fundamentally the same and described as traditional.

On-line: The platform follow the same in-person process however the customer and supplier can meet online using the platform’s space (complete on-line facilities including video chatting, white board and sessions recordings).

In person: The platform assist the students (customers) to accurately identify their educational/ career needs and match it with the best-fit tutor/ instructor (supplier) as per a systematic selection process based on multi-factors including the geographical positioning.

In-Person On-Line1 2

In-class training: The platform assist the students (customers) in identifying the best-fit training provider for group/in-class tutoring as per several criteria including location using geographical positioning, price, demographics and trainers/ instructors profile.

In-Class3

The Solution

Develop and commercialize a digital marketplace offering a selection of professional service providers right at the customers fingertip through seamless digital experience, highly competitive pricing, a secure way to pay.

GrowMe is a marketplace for those seeking tutoring/ training/ tour-guiding/ personal assisting services to connect with those seeking to provide those services. GrowMe also provides a service to its users whereby payments will be distributed to tutors that originate from their Growees (learners).

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SWOT Analysis

Strengths - S1 Highly skilled technical developers2 Previous experience in similar business model3 Proven business model

Weaknesses - W1 Intermediary use2 Lack of funding3 Cross-channel support4 Market uncertainties

Opportunities - 01 Cross-selling2 New markets

3 New services

4 Alliances/co-branding

SO strategiesLeverage strengths to maximise opportunities = attacking strategy

1 Migrate customers to web strategy2 Refine customer contact strategy across customer lifecycle or commitment segmentation (e-mail, web)3 Partnership strategy (co-branding, linking)4 Launch new web-based products or value-adding experiences, e.g. video streaming

WO strategiesCounter weaknesses through exploiting opportunities = build strengths for attacking

1 Counter mediation strategy (create or acquire)2 Search marketing acquisition strategy3 Affiliate-based acquisition strategy4 Refine customer contact strategy (e-mail, web)

Threats – T1 Customer choice (price)2 New entrants

3 New competitive

products4 Channel conflicts

5 Social network

ST strategies

Leverage strengths to minimize threat = defensive strategy

1 Improve existing services2 Add value to services - refine OVP3 Partner with complementary brand4 Create own social network/customer reviews

WT strategiesCounter weaknesses and threats: = build strength for defensive strategy1 Differential online pricing strategy2 Acquire/create pure-play company with lower cost-base3 Customer engagement strategy to increase conversion, average order value and lifetime value4 Online reputation management strategy/E-PR

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Market Size


25 M

Overall (students + non-students) market size in

GCC and Levant area

6.2 M

Potential students customers in GCCC and

levant area

4.1 M

Potential students customers in GCCC and

levant area

54M

47%

11M

57%

14M

29%

Primary Market Segmentation

We have followed psychographics (personality and lifestyle) based market segmentation as a primary factor followed by age group, occupation, gender and education as secondary factors

4M in KSA Market are estimated to have white collar jobs with an Avg. income of 16K SAR.

01Male: 18M Female:15M02 Median Male: 27.9

Median Female: 26.203 School Student: 6.5MUniversity Student: 1.5M 04

Lifestyle Gender Age Group Education


Product Overview

GrowMe platform is designed and developed by a team of skilled developers and analytics to deliver a highly interactive and user-friendly mobile and web interfaces backed by exceptional back-end platforms to encourage the students and learners to use GrowMe platform as often as possible.

GrowMe platform is designed to offer full range of soft-skills services as follows:

1. University Tutoring

2. School Tutoring

3. Career development

coaching

4.Languages Tutoring

5. Life-skills Coaching

6. Fitness and wellness

Coaching

7. Personal Assistance

Services



Competitors Benchmarking

Marketplace

Geographical

positioningYes No No No Yes Yes

E2E service Yes No No No Yes Yes

Supplier selection

criteria

Suppliers (Talents)

screened and

interviewed

No selection

criteria (Not

screened)

No selection

criteria (Not

screened)

No selection

criteria (Not

screened)

Suppliers (Talents)

screened and

interviewed

Suppliers (Talents)

screened and

interviewed

Technology &

infra maturity Beta Testing Early Stage Early Stage Early Stage Mature Mature

Payment End user to

supplier

Listed Fixed price

services

Quotation

required

Quotation

required

End user to

supplier

End user to

supplier

Mobile app Yes No No Yes Yes Yes

Annual revenue 0 0 0 Unknown 400+ Million USD 50+ Million USD

Region Middle east &

GulfUAE

Middle east &

GulfUAR United states UK

Profession (area

of expertise)

Tutoring & Soft

skillsSoft & hard skills Soft & hard skills Soft Skills

Tutoring & Soft

skillsTutoring

Monthly Website

Visitors6k 5K 6K 35K 2.5M 450K

Founded April 2017 June 2016 Nov 2016 Feb 2015 Sep 2005 July 2013

Registered

Supplier480 Unknown 3K 45K 80K 30K

GlobalRegional

GrowMe Operating Model Pillar


• Comprehensive disciplines/subjects offerings

• Simple, streamlined and transparent transactions

• Several payment options

• Unlimited users support through Omni-channels

(phone, web and app chat, social media and email

support)

• Good fit Guarantee for both (growers and growees)

Company Organizational Structure

CEO

Accounting Recruitment

Technology

PMOMarketing and

BI

Finance and HR

Employee Relations

Growers Acquisition

Customer Service

Operations VP

Software Development

UI/ UX


Data Analysis

*Outsourced to the

technology partner (The

Muff)

Management Team


Position Name Degree Nationality Years of Experience

Previous Employers

Specialties

Chairman Salman Al Suhaibany

Masters in Business Administration

Saudi 10 Lazard, Weqaya, The Muff, Morni

Entrepreneurship, Strategy, risk management, finance, compliance, Internal Audit

CEO Mohammed Bitar B.Sc, Industrial Engineering

Jordanian 12 years Zain, STC, Weqaya, LP consulting, Abu Dhabi Health Authority

PMO, strategy, quality, risk management, customer experience and BI

Head of Operations

Alaa Kanaan B.Sc, Computer Engineering

Jordanian 12 years STC, CCC, Innova

IT, Operations, customer experience and PMO

Marketing and BI

Saleh Al Ojan B.Sc, Political Science

Saudi 9 years NCB, GIB, Meem

Marketing, BI, customer experience

Technical Team


Name Position Nationality E-mail

Hussam AlMarzooq Back-End Developer Saudi [email protected]

Hammam Adam PMO Sudanese [email protected]

Khaled AlTuwajri Web App Developer Saudi [email protected]

Mohammed Elaref Front-End/UI Egyptian [email protected]

Mohammed AlSaeed Graphic Designer Saudi [email protected]

Abdulrahman alsharif Graphic Designer Saudi [email protected]

mailto:[email protected]






Payment Method

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5% of the transactions will be paid by cash, whereas a limitation is applied for COD facility as growers (experts) are only allowed to provide only two sessions using COD and it increases with the grower rating.

10% of the transactions will be paid using vouchers that will be distributed and sold in all hypermarkets, kiosk in universities, schools, gyms and training centers.

20% of the transactions will be paid using paypalaccounts due to its increasing usage among the e-commerce customers and the ability to refund easily.

65% of the transactions will be paid using Credit/ debit cards. Promotional offers will be provided to encourage this type of payment.

Cash

Vouchers

Paypal

Credit/ Debit Card

Several payments methods will be provided directly through GrowMe platform, however, we will enforce less risky and low cost methods such as (Credit/ Debit cards and paypal) over Cash and vouchers by providing promotional and discounts for customers who are paying via those type of payments.

Cash will be restricted as possible by providing a cap for growers (experts) to accept orders and this cap increase with the grower’s rating.

Break-Even Summary

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Net Income Breakeven Operating Cash Flow Breakeven

Jun-18First month for Net Income

Breakeven Dec-17First month for Operating Cash

Flow Breakeven

17,120 Number of total offering units

(lesson hours) required for Net

Income Breakeven6,485

Number of total offering units

required for Operating Cash Flow

Breakeven

2,458,117 Amount of monthly Revenue in

SAR (Saudi Riyals) required for

Net Income Breakeven933,410

Amount of monthly Revenue in

SAR (Saudi Riyal) required for

Operating Cash Flow Breakeven

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5-Years Financial Performance Summary

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SAR (Saudi Riyal) 2017 2018 2019 2020 2021

Income Statement Summary

Total Revenue 2,004,705 31,876,729 81,115,318 143,909,128 218,205,153

Total Direct Costs 1,504,967 23,207,561 58,770,904 103,549,819 158,062,880

Gross Margin 499,738 8,669,167 22,344,415 40,359,308 60,142,272

Total Operating Expenses 1,716,298 7,545,224 10,466,536 12,917,123 14,834,335

Operating Income (Loss) (1,216,560) 1,123,944 11,877,879 27,442,185 45,307,938

Income Taxes - - 294,632 686,055 1,132,698

Net Income (Loss) (1,216,560) 1,123,944 11,583,247 26,756,131 44,175,239

EBITDA (Loss) (1,216,560) 1,123,944 11,877,879 27,442,185 45,307,938

% -60.7% 3.5% 14.6% 19.1% 20.8%

Total Current Assets 2,077,035 16,120,042 30,950,209 77,734,145 126,361,107

Total Assets 2,077,035 16,120,042 30,950,209 77,734,145 126,361,107

Total Share Capital 1,383,441 13,007,384 24,590,631 67,346,762 111,522,001

Total Current Liabilities 693,594 3,112,658 6,359,578 10,387,383 14,839,106

Total Liabilities and Equity 2,077,035 16,120,042 30,950,209 77,734,145 126,361,107

Cash Flow Summary

Total Cash From (For) Operating Activities (567,606) 3,341,248 14,577,367 30,485,056 48,330,642

Total Cash From (For) Financing Activities 2,500,000 10,500,000 - 16,000,000 -

Net Increase (Decrease) In Cash 1,932,395 13,841,248 14,577,367 46,485,056 48,330,642

Cash and Cash Equivalents-End 2,032,395 15,873,642 30,451,009 76,936,065 125,266,707

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5-Years Return Summary

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SAR (Saudi Riyal) 2017 2018 2019 2020 2021

Return Summary

Enterprise Value Based Upon Multiple - 7,867,606 83,145,150 192,095,296 317,155,563

Total Equity Value (EV-LTD+Net Cash) 2,032,395 23,741,248 113,596,159 269,031,361 442,422,271

Liquidation Preference - 15,843,750 15,843,750 39,843,750 39,843,750

Liquidation Preference Value - 15,843,750 15,843,750 39,843,750 39,843,750

Available to Common 2,032,395 7,897,498 97,752,409 229,187,611 402,578,521

Total Preferred (Venture Capital) Invested

- 10,562,500 10,562,500 26,562,500 26,562,500

Total Preferred Ownership 0.0% 47.5% 47.5% 61.1% 61.1%

Total Preferred Equity Value - 19,593,261 62,253,860 179,874,182 285,813,607

Preferred Return Multiple 0.0x 1.9x 5.9x 6.8x 10.8x

Preferred 5-Year FCF-Based IRR 2.4%

Preferred Net Income-Based Payback (months)

49

Total Common (Seed/Angel) Invested 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

Total Common Investor Ownership 33.3% 17.5% 17.5% 13.0% 13.0%

Total Common Investor Equity Value 677,465 1,382,662 17,114,100 29,719,060 52,202,888

Total Common Investor Return Multiple 0.3x 0.6x 6.8x 11.9x 20.9x

Common 5-Year FCF-Based IRR 30.1%

Common Net Income-Based Payback (months)

40

Total Founders and Mgmt Ownership 66.7% 35.0% 35.0% 25.9% 25.9%

Total Founders and Mgmt Equity Value 1,354,930 2,765,325 34,228,199 59,438,120 104,405,776

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5-Years Revenues, Margin and Earnings Growth

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020 2021

P&L Expense and Margin Mix Analysis

Gross Margin Total Operating Expenses Total Direct Costs

-50,000,000

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2017 2018 2019 2020 2021

Revenue, Margin, and Earnings Growth

EBITDA (Loss) Gross Margin

Total Revenue Net Income (Loss)

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Key Metrics

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SAR (Saudi Riyal) 2017 2018 2019 2020 2021# of Website Visitors 295,000 3,660,000 7,980,000 12,300,000 16,620,000 Conversion Rate 3.100% 3.500% 3.900% 4.300% 4.500%# Growee (Customer)s 4,536 74,038 183,706 315,213 460,884 # Employees 16 26 33 38 40 # Growee (Customer)s/Employee 284 2,848 5,567 8,295 11,522

Revenue 2,004,705 31,876,729 81,115,318 143,909,128 218,205,153 Revenue/Growee (Customer) 442 431 442 457 473 Revenue/Employee 125,294 1,226,028 2,458,040 3,787,082 5,455,129

Net Income (1,216,560) 1,123,944 11,583,247 26,756,131 44,175,239 Net Income/Growee (Customer) (268) 15 63 85 96 Net Income/Employee (76,035) 43,229 351,007 704,109 1,104,381

Operating Cash Flow (567,606) 3,341,248 14,577,367 30,485,056 48,330,642 Operating Cash Flow/Growee (Customer) (125) 45 79 97 105 Operating Cash Flow/Employee (35,475) 128,510 441,738 802,238 1,208,266

TTM Revenue 2,004,705 31,876,729 81,115,318 143,909,128 218,205,153 TTM EBITDA (1,216,560) 1,123,944 11,877,879 27,442,185 45,307,938 Run-Rate Rolling Three-Month Revenue 7,610,820 47,922,789 101,297,141 168,513,219 241,129,734 Run-Rate Rolling Three-Month EBITDA (2,748,588) 4,837,721 16,957,739 33,879,838 51,491,604 Run-Rate Annualized Monthly Revenue 11,200,920 51,416,652 105,435,734 173,358,101 245,922,286 Run-Rate Annualized Monthly EBITDA (1,961,848) 5,614,416 17,841,889 35,254,647 52,770,675

Free Cash Flow to Equity (567,606) 3,341,248 14,577,367 30,485,056 48,330,642 Average AR 4,933 140,313 369,040 644,880 955,080 Average AP 96,514 1,833,169 4,762,287 8,461,326 12,986,418 Days Sales Outstanding DSO 0.9 1.6 1.7 1.6 1.6 Days Payables Outstanding DPO 23.4 28.8 29.6 29.8 30.0 Cash Conversion Cycle (DIOH+DSO-DPO) (22.5) (27.2) (27.9) (28.2) (28.4)Current Ratio (CA/CL) 3.0 5.2 4.9 7.5 8.5 Quick Ratio ((CA-Inv)/CL) 3.0 5.2 4.9 7.5 8.5 Cash Ratio ((Cash + Securities)/CL) 2.9 5.1 4.8 7.4 8.4 Operating CF Ratio (CFO/CL) (0.8) 1.1 2.3 2.9 3.3

5-Years Capitalization Table

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Type Affiliation

Founding and Pre-Seed Options Common Investment and Post-Seed OptionsSeries A Venture Capital Investment and Post-Series A

OptionsSeries B Venture Capital Investment and Post-Series

B Options

# SharesOwnersh

ip %Fully

Diluted %

Amount SAR

(Saudi Riyal)

# SharesTotal # Shares

Ownership %

Fully Diluted

%

Amount SAR (Saudi

Riyal) # Shares

Total # Shares

Ownership %

Fully Diluted %

Amount SAR (Saudi

Riyal) # Shares

Total # Shares

Ownership %

Fully Diluted

%

Common Founder(s) 1,000,000 100.0% 100.0% 1,000,000 66.7% 66.7% 1,000,000 35.0% 35.0% 1,000,000 25.9% 25.9%

CommonSeed

Investors2,500,000 500,000 500,000 33.3% 33.3% 500,000 17.5% 17.5% 500,000 13.0% 13.0%

PreferredVC

Investors10,562,500 1,355,903 1,355,903 47.5% 47.5% 16,000,000 1,000,000 2,355,903 61.1% 61.1%

Total Equity Investment

2,500,000 500,000 500,000 33.3% 33.3% 10,562,500 1,355,903 1,855,903 65.0% 65.0% 16,000,000 1,000,000 2,855,903 74.1% 74.1%

Total Founders and Equity

1,000,000 100.0% 100.0% 500,000 1,500,000 100.0% 100.0% 1,355,903 2,855,903 100.0% 100.0% 1,000,000 3,855,903 100.0% 100.0%

Options and

Warrants

Employees and

Advisors- 0.0% - - 0.0% - - 0.0% - - 0.0%

Grand Total with Options

1,000,000 100.0% 500,000 1,500,000 100.0% 1,355,903 2,855,903 100.0% 1,000,000 3,855,903 100.0%

Price per Share 5.00 7.79 16.00

Pre-Money Value 5,000,000 11,685,019 45,694,444

Post-Money Value 7,500,000 22,247,519 61,694,444

21

Thank You…

www.growme.org

[email protected]+966 560022211+971 505940141

GrowMe - · PDF fileWe have followed psychographics (personality and lifestyle) based market segmentation as a ... Hammam Adam PMO Sudanese [email protected]

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