THE UNIVERSITY OF TEXAS AT AUSTIN Global Moot Corp Competition MSTC MEXICO McCombs School of Business May 8th, 2010 Recargatel!
Sep 21, 2014
THE UNIVERSITY OF TEXAS AT AUSTIN
Global Moot Corp CompetitionMSTC MEXICO
McCombs School of BusinessMay 8th, 2010
Recargatel!
The Pain
• Mobile business in Mexico has market size of 80M and a growth rate of 15%.
In Mexico current locations to buy air time are not near and the amounts are not affordable for:
56M mobile users!!!!
Our Solution: Recargatel!!!
Buy Prepaid air Time
Public phone calls
Text Messages
Contents
Remote management system
Wireless Pay Phone Vending Machine
Business Landscape
End User•No bank account.•Income: Less than $100 USD a week.•No landline or computer.•Strong Communications needs.
Pop & Mom Store •No bank account or credit card.•Cash Economy.•No computer to sale prepaid air time for mobile phones.•Family Business (1,000,000 in Mexico).
Value Chain WiPhone (Hardware)
Pop & Mom Store
Activities/Role
Order a $510 USDWiphone
Mobile CarrierMargin: $146 USD
Activities/Role
Order Wiphone To Recargatel(Pays $364 USD)
Wiphone 18 monthsFinancing: $32.9 USD
Recargatel!Margin: $84 USD
Activities/Role
Deliver the Wiphoneto the Mobile Carrier(Full Cost: $280 USD)
Value Chain Prepaid air time
End Customer
Needs
Buy a $1 USD prepaid time
Convinent location
Pop & Mom StoreMargin: 4%
Activities/Role
Prepaid InventoryTake care of Wiphone
RecargatelMargin: 5%
Activities/Role
Time Air Distribution(Mobile Aggregator)WiPhone support
Mobile CarrierMargin: 91%
Activities/Role
Wireless NetworkAvilable
Marketing Plan
Focus in niches and differentiation
Operations in 4 cities:
Monterrey Mexico City Guadalajara Leon
40 Million Mobile Phone
Mexican Market: $8b USD
45%
31%
14%
10%
Diestel
Recargas Noreste
Paga Todo
Others
Market Share Breakdown
Business Model: Acid Test
• Good News: We have a market trial of
1,000 units in Monterrey, Mexico.
• The key conclusion are:– Good Pop&Mom Store acceptance because brings
additional customers to the store.
– Average monthly revenue of $800 USD per store.
Pilot Test Revenues
1° of Jan.
2° of Jan.
3° of Jan.
4° of Jan.
1° of Feb.
2° of Feb.
3° of Feb.
4° of Feb.
1° of Mar.
2° of Mar.
3° of Mar.
4° of Mar.
1° of Apr.
2° of Apr.
3° of Apr.
4° of Apr.
$100,000
$140,000
$180,000
$220,000
$260,000
$300,000
Growth: 30 %Eastern Holiday
• Revenue: $13M MX pesos approximately a recurrent business of $1M USD a month
Recargatel: Weekly Revenue
Industry Leaders Opinion
• “This is a really attractive technology that is innovative and necessary”
Mateo Mendoza, General Manager of Public Telephony from Telefonica Movistar
• “I’m interested in the WiPhone … So, we can start with a beta test of 500 units and then see how it works”
Daniel Hajj Abounrrad CEO America Movil(Carlos Slim Company)
2010, 1QR&C
Agreement Exclusivity
2010, 2QGet Grants Beta Test
2010, 2QPO from Telcel
100,000
2010, 3QVC Funds
2012 JuneBreakeven
Time line
PO
CEO: Rafael Tejeda
CFO: Luis Torrreblanca
CTO: Melissa Guerrero
VPM: Antonio Gerling
VPLO: Johanna Olmos
BD: Fernando Huerta
IP: Martha Laura
Management team
Financials: Revenues
Carriers $670M
Pop&Mom $33M
Recargatel $37M
Top up (Prepaid air time)Revenues by 2014
$740M(Stores)
Business Opportunity
• Revenues of 51,441,511 USD on 2014
• Payback: 20 months
• NPV of $13,757,560 USD
• IRR: 84.7%
• Company Value on 2014: $74,282,050 USD
• An Investment of $1.4M USD by 37.5% Preferred Stocks
The Deal: What we Offer!!!
$ 1.4 MUSD
Equity: 37.5%
Funds used for:a) Manufacturing WiPhones. b) Logistics Infrastructure and Headcount
Exit Strategy:
c) Selling the company to Mobile Carrier or Banking.
d) IPO.
Recargatel!
Disruptive Opportunity: Focused to a market of 56M mobile users in Mexico but the need is worldwide.
Proven Business Model & Technology: Because now recargatel has a 1,000 units in Monterrey Mexico applying Coca-Cola business model.
Team: More than 10 Years of Entrepreneurial & Telecom experience in Mexico.
Summary: Please Remember!!!!!
Cash Machine for main stakeholders: $740M USD
THE UNIVERSITY OF TEXAS AT AUSTIN
Global Moot Corp CompetitionMSTC MEXICO
McCombs School of BusinessMay 5th, 2010
Recargatel!