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Birdi

Buy and sell easy, safe and comfortable without moving

Chile
Market: Internet and IT, Logistics and warehouses, Transport, Another, Mobile applications
Stage of the project: Operating business

Date of last change: 15.10.2020
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Idea

Birdi is a software company that has developed a C2C marketplace that is safer, much more comfortable and easier to use than existing solutions like Letgo, Facebook’s Marketplace or Mercadolibre (Latam).

Current Status

Birdi launched the app in October last year. And during the quarantine (the last 3 months) we had an explosive growth of more than 500%:
- We go from one transaction per month to 1 transaction per day
- From 300 users to more than 10,000
- From 15usd in income to 1,000 usd per month
- Today there are approximately 1500 active users weekly.

We are currently ready to open operations throughout the country

Market

SEGMENT DEPENDING THE USER

SELLERS:
- Users between: 18 and 45 years old
- between 50% and 70% are mens.
- We are focus on C2C but: the 20% of our users are small entrepreneurs and merchants.
-They like not having to move fr om home
- They have a smartphone and internet
- Regular sellers use to sell facebook marketplace or Mercadolibre (The only options on the market in Latin America).

BUYERS:
- Between 18 and 45 yo
- Users used debit, credit and prepaid credit card
- Between 18 and 20 used prepaid credit card a lot, foraigners too.
- Like to buy products on social networks
-They spend on average between US $ 50 ad US $ 100 per month
- Are always looking for offers
- smartphone and internet
-They are active users of apps like AliExpress and Wish. They are used to buying through this app, due to the addiction and gamification of these applications.

LOCAL MARKET CHILE:
- The growth of e-commerce in Chile is around 30% per year. During 2019 internet sales were USD 6,079 million.
- Only in second-hand products grows by 12%
According to Yapo.cl (platform for buying and selling second-hand products) they have 5 million users in their app buying and selling.
- Chile is one of the most prepared countries in the region for this type of trade, its sale represents an estimated 9% and has the highest per capita spending USD 320 in the region, compared to Mexico which spends USD 192, Colombia USD 155, Brazil USD 83, Peru USD 121 and Argentina USD 145 per capita per year in online purchases.
- Due to the covid this year the delivery in Chile had an explosive growth of the delivery industry by 156%

REGIONAL MARKET LATIN AMERICA:
Marketplaces double and triple digit growth of orders in the Latin American countries. 52% in Argentina, 112% in Mexico, 119% in Colombia and up to 125% in Chile, compared to what was received in the same period of 2019.


Global Market:

Problem or Opportunity

OPPORTUNITY
Second-hand market have become very relevant and important in recent years, ThredUp and Fast Company ensures that we are experiencing the golden age of the second-hand market.
These are the keys:
- Resale has grown 21x faster than retail apparel market over the past three years.
- Secondhand is expected to grow 2x in the next 10 years and will be larger than fast fashion.
- 51% of consumers plan to spend more on second hand in the next 5 years.

So buy and sell an used item should be easier than ever, ¡right!? IT ISN ́

PROBLEM:
Only in 2018 online scams in the US reached almost US$ 1,4 billion in categories like electronic and clothing. Scams are very common in second hand marketplaces and are growing 38% every year. And that's not all, assaults, sexual abuse and even murder have also been reported. This is not only happening in USA but also in a much greater quantity in Latin America and Europe. More than 60,000 products purchased online a year arrive diferent from the description.

PAIN:
Imagine how painful can be. Imagine you ́re meeting a user that you don't know to buy an used iPhone in an insecure place with US$300 in your pocket or letting a stranger enter your house to buy your macbook. This not only puts you and your family in an unsafe situation but also takes time away from you to investigate whether the user is a thief or a fraud, even coordinating place and time to exchange a product.

This is the real problem of millions of users in marketplaces of second-hand products among people or peer to peer.

Solution (product or service)

WHICH IS THE SERVICE AND PRODUCT
Birdi developed a C2C marketplace that is safer, much more comfortable and easier to use than existing solutions.
In contrast to other apps, Birdi has created its own efficient last mile shipping service with a unique 5 steps protocol of pick-up, delivery and user profile verification.
After a transaction, users can choose available time and day of pick-up and delivery without moving from where they are.

THIS IS HOW IT WORKS:
Birdi is a free marketplace app downloadable from playstore. By registering, you can enter a mobile platform that allows
you to buy and sell as follows:

FOR SELLERS:
Steps:
1.- Just take a photo of the item, add a description and enter the price to list.
2.- Once a user has purchased your item, Birdi will send you a notification to confirm the sale, you must also confirm address and the day and time of pick-up.
3.- One of our shipper will receive notification of your order and will go to your address to pick-up your product after completing the 5-steps "Product Verification Protocol" that reduce scams.
4.- Once your buyer receives the item, he will rate you and you will receive the payment in your BirdiWallet inside of Birdi app.
5.- Then you can quickly withdraw the money to your bank account. EASY!

FOR BUYERS:
1.- Do you see something you like? Inspect the product card.
3.- Tap the buy button, choose delivery time and day, payment method and we ́ll notify you as soon as it ́s shipped.
4.- Buy with confidence, because with Birdi ́s "Buyer Protection Guarantee", we don ́t release your payment to the seller until you have confirmed that the item has arrived as described in the post.
5.- You can track your purchase in real time through the tracking located in the home app.
6.- Once you have received the item and as described, please submit a rating so that we can release your payment to your seller.
7.- If there is a problem with your item, please don ́t rate and instead request a return or contact us through the online chat in the Help Center or our website
within 3 days of delivery to requesta return or refund. EASY!

Competitors

We have substitutes like Mercadolibre, OLX, ebay, Letgo, OfferUp or Mercari. But none of them deliver the experience and service to the consumer or person as if they were a retailer.



Advantages or differentiators

- We create a unique platform to buy and sell really different and focused on millennials and generation Z.

- Birdi allows you to buy and sell in a single app easily and simply

- We provide the service of 120 minutes delivery to certain verified accounts. For example: SMA´s

- Users can get the products that they want fastly and safe in to their house without moving.

- Buyers and sellers can now choose the day and time of pickup and delivery.

- We can manage the cost and be lower and very competitive

- Our logitic is safely. We create a protocol that our shippers most comply avery time they pick-up and delivery a product with the goal to reduce scams.

- While other Marketplaces like Mercadolibre in Latin America spent more than 100 million dollars in a warehouse system with fullfilment. We create a system where fullfilment does not exist. This term means an excessive cost of operation for any e-commerce, such as warehousing, inventory and infrastructure. For this reason we created an algorithm in which our sellers and buyers choose the time and day available for pickup and delivery in our app. The warehouse is in the house of each of thour vendors, what we do automatically is make the match between buyer and seller.

- Other buying and selling marketplaces does not have the shipping. The logistics are carried out by third parties. This makes it dependent on third parties who do not take care of the cargo or customer service.

- Current logistics company does not verify that the products that are being sent are true. And the distributors who make the pick-up and deliveries are not evaluated by the users to generate a different and unique experience. Birdi automates all of this. Shippers that do not deliver a good service cannot continue to ship through our application.

Finance

OUR REVENUE MODEL CONSIST OF:

Commission Revenue Model:
a.- Birdi charges the seller 10% for each product sold. It is discounted before transferring the money resulting from the sale of an item.

Featured Listings and Ads
b.- Payment for more visibility within the application and faster seller power:
That can be daily, weekly or monthly and costs US $ 1, US $ 3 and US $ 5 respectively.

We have a detailed cash flow based on the history that we have had in the last 3 months. The combined revenue between transaction commission and exposure payment projected for:
- 2021: US $ 649,856 (Just Chile)
- 2022: US $4,580,531 (Chile, Colombia, México)
- 2023: US $10,723,182 (Expansion Latam)
- 2024: US $88,715,595 (Consolidation Latam)
- 2025: US$189,175,270 (Latam and EE.UU)

Business model

Birdi is a marketplace where buyers and sellers meet to buy and sell new and second-hand products.

Sellers:
- Publish and upload new and second-hand products
- After the sale and withdrawal of the product. Birdi retains a 10% commission per transaction.

Buyers:
- They buy unique products at low prices and safely and comfortably without leaving home.

How does we get paid?

Those who pay are the sellers.
Our marketplace has 2 ways to generate income:

Commission Revenue Model:
a.- Birdi charges the seller 10% for each product sold. It is discounted before transferring the money resulting from the sale of an item.

Featured Listings and Ads:
b.- Payment for more visibility within the application and faster seller power:
That can be daily, weekly or monthly and costs US $ 1, US $ 3 and US $ 5 respectively.

Money will be spent on

Business Projections and Strategy:
- Optimization and constant improvement of the iOS and Android app: This allows us to be at the forefront of technology and deliver solutions that impact our users month by month in an agile way. Hence this means more user retention, usability and revenue generation.
- Execute strategies and marketing plan: It will increase brand positioning, users, transactions and therefore more traction.
- Finish development of the web version of the Birdi marketplace: It will allow hundreds of users to access the web page to buy and sell.
- Scale to other cities in Latam: Open main cities in Latam like, Ciudad de Mexico, Buenos Aires, Bogota and Sao Paulo.
- Incorporate Birdi as an LLC company in the USA

The capital will be distributed as follows in order to meet the objectives described above:
Operating Costs 37.81%
Operational workforce 44.01%
Administrative Remuneration 9.04%
Administrative expenses 1.21%
Marketing and Advertising 7.93%

Offer for investor

We are seeking $ 250,000 for 10% of the company.

The investment capital will allow us to execute the following points during the next 8 months:

- Business Projections and Strategy:
- Optimization and constant improvement of the iOS and Android app: This allows us to be at the forefront of technology and deliver solutions that impact our users month by month in an agile way. Hence this means more user retention, usability and revenue generation.
- Execute strategies and marketing plan: It will increase brand positioning, users, transactions and more traction.
- Finish development of the web version of the Birdi marketplace: It will allow hundreds of users to access the web page to buy and sell.
- Scale to other countries: Colombia, México, Brasil and Argentina.
Incorporate Birdi as an LLC company in the US: To raise international funds and scale to other countries.

Risks

Our risks focus on the following variables:

- Financing risks: Currently, in order to scale and grow exponentially, we need risk capital. Which of not obtaining it, the company may lose momentum and new competitors appear in the market.

- Risk of losing the moment: The current timing is perfect to be able to launch an app like Birdi due to the health contingency of covid-19, but if you do not scale quickly, that current perfect timing can be lost.

Incubation/Acceleration programs accomplishment

We have complied with the start-up Chile acceleration process. This allowed us to refine our business model and further develop our product. To the point that we could go from 0 to 300 users in 1 month. Now we are looking to be accepted in YCombinator.

Won the competition and other awards

We participated in the Innovation Latams Awards in 2019 where we were semifinalist in the Retailtech category. These did not validate our business and innovation model in a good way.

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Photo 1 - Buy and sell easy, safe and comfortable without moving

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video