Hello Tractor Teaser

Executive  Summary  

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 Hello  Tractor,  Inc.  (“Hello  Tractor”  or  the  “Company”)  is  an  agricultural  technology  company  focused  on  improving  access  to  affordable  farm  mechanization  for  the  rural  poor.  Hello  Tractor  has  developed  a  low-­‐cost  Smart  Tractor  –  embedded  with  GPS  and  telematics  -­‐  which  connects  the  Smart  Tractor  to  our  cloud-­‐based  software.  Our  software  pairs  Smart  Tractor  owners  with  farmers  who  can  text  for  tractor  services,  all  coordinated  in  the  cloud  (think  Uber).  The  Smart  Tractor  is  versatile  (with  eight  different  attachments),  low  cost,  and  supported  by  trained  technicians  with  spare  parts  for  on-­‐site  repair.        The  majority  of  farming  in  Nigeria  is  done  by  smallholder  farmers  who  manage  just  over  one  hectare  of  land.  Over  80%  of  these  35  million  

smallholder  farmers  hire  off-­‐farm  labor,  to  assist  with  land  preparation,  weeding,  harvesting  and  transport  of  harvest.  Hired  labor,  when  available,  costs  approximately  $5  per  day  or  $200  per  hectare  for  land  prep  alone.  Rapid  urbanization  and  an  aging  farm  population  has  depleted  the  supply  of  labor  in  rural  Nigeria,  resulting  in  farmers  undercultivating,  planting  late  and  losing  income.      In  labor  constrained  farming  markets  tractors  are  the  ideal  solution.  Unfortunately,  in  Nigeria  only  4%  of  tractor  demand  is  currently  being  met.  The  Federal  Ministry  of  Agriculture  and  Rural  Development  (FMARD)  estimates  that  Nigeria  needs  an  additional  750,000  tractors  to  bring  herself  on  par  with  global  standards.

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Nigeria   Africa   China   India   Global  Average   U.S.  

Figure  1:  Tractors  per  100Km2  of  Arable  Land  

“The  majority  of  Nigeria’s  smallholder  farmers  are  often  too  poor  to  employ  modern  tools,  such  as  tractors  and  plows,  even  with  

substantial  government  support...  Consequently,  very  few  Nigerian  farmers  own,  share,  or  rent  modern  agricultural  machinery.”      

Hiro  Takeshima,  International  Food  Policy  Research  Institute  

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Operating  in  a  double-­‐sided  market,  Hello  Tractor  sells  its  Smart  Tractor  to  individual  and  enterprise  buyers  while  simultaneously  marketing  Smart  Tractor  services  to  farmers  facing  labor  constraints.  In  true  shared  economy  fashion,  Hello  Tractor  pairs  Smart  Tractor  owners  with  farmers  texting  into  the  cloud  for  tractor  services,  ensuring  every  tractor  is  fully  utilized.  Where  available,  farmers  can  also  pre-­‐pay  for  tractor  services  via  mobile  money.  Hello  Tractor  markets  Smart  Tractor  services,  to  farmers,  via  its  agricultural  extension  radio  program,  “Farmers  on  Air”.    The  Hello  Tractor  innovation  reduces  farmers  production  costs  by  up  to  60%.  Smart  Tractor  owners,  providing  fee  based  services,  to  farmers  in  their  vacinity,  earn  five  times  the  average  rural  daily  wage  rate.  For  cash-­‐constrained  buyers,  Hello  Tractor  coordinates  low-­‐cost  financing  options  to  facilitate  Smart  Tractor  purchases.      In  January  of  2015,  core  members  of  the  Hello  Tractor  team  relocated  to  Nigeria  for  phase  one  of  the  product  launch.  Since  this  time,  the  Company  has  generated  a  tremendous  amount  of  momentum  including  building  an  enterprise  sales  pipeline  of  more  than  $6.4  million  in  batch  Smart  Tractor  orders.  Additionally,  Hello  Tractor  has  developed  key  partnerships  with  13  of  the  top  NGO,  public  and  private  sector  agriculture  industry  stakeholders  and  applied  for  over  $2  million  dollars  in  grants.  The  Company  has  also  formed  a  valued  strategic  partnership  with  Habgito  Nig  Ltd,  who  will  provide  logistics,  warehousing,  tractor  maintenance  and  repair  support.      Additionally,  Hello  Tractor  has  won  every  single  major  competition  they’ve  entered,  including  1st  at  the  Points  of  Light  Civic  Accelerator  Competition  ($50,000),  the  Skyrocket  Brand  Prize  ($40,000),  1st  at  the  University  of  Chicago  Booth  Social  New  Venture  Challenge  ($30,000),  CARE  International  ($20,000),  and  1st  at  World  Bank  Diaspora  Demo  Day.  To  continue  this  momentum,  the  Company  is  seeking  $500,000  in  convertible  note  financing  for  the  following:    Figure  2:  Pro  Forma  Sources  and  Uses          

Sources  Amount   %  of  

Total       Uses  Amount   %  of  

Total  Convertible  Notes   $500,000   75%       Staffing   $305,000   45%  Grants   120,000     18%       Software  Costs    170,000     26%  Founders  Equity   40,000     6%       SG&A   140,000     21%  Assumed  Debt*   10,000     1%       Cap  Ex   45,000     7%                   Assumed  Debt     10,000     1%  Total  Sources   $670,000   100%       Total  Uses   $670,000   100%    Hello  Tractor’s  immediate  concern  is  capital  to  finance  the  hiring  of  additional  technical  resources  along  with  large  batch  order  fulfillment.  This  investment  will  ensure  that  momentum  generated  over  the  last  year  translates  into  Smart  Tractors  being  introduced  into  underserved  farming  communities.    Please  contact:  Jehiel  Oliver  at  [email protected]  for  more  information.  

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Enterprise  Case:  Notore  Chemicals  

Batch  Orders  Driving  Sales…      Notore  has  a  goal  of  developing  its  village  fertilizer   distributors   into   owners   of  Smart  Tractors   to  enhance   the   value   they  provide   customers.   Each   distributer   is  networked   to   over   600   smallholder  farmers.  Notore  wants  to  procure  a  Smart  Tractor   for   300   distributors   in   2015  alone.   Notore   combines   all   of   the   key  aspects  that  we  look  for  in  a  partner.  Over  the   past   few   months,   we   have   gained  significant   access   to   their   senior  management   team,  which   has   allowed   us  to   quickly   vet   Smart   Tractor   owners,  survey   and   validate  markets   and   prepare  for   their   first   order.   Through   the   large  batch   order   to   Notore’s   network   of  distributors,   we   believe   we   can   reach   a  total   of   20,450   smallholder   farmers   and  102,270   people   at   the   household   level,  creating  N618.75M  (USD3.09)  in  economic  value   for   rural   farming   communities  through  2016.    

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THANK  YOU!