Photo - Saga Sleep
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Saga Sleep

Russian sleep app with Russian sleep stories

Sweden
Market: Mobile applications
Stage of the project: Operating business

Date of last change: 12.06.2020
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Idea

Somewhat similar to CALM but a Russian version of it, since we have worked there for so long and know the consumer. We will add a digital psychology service with Russian sleep clinics to differentiate. We are not meditation or audiobook service - we are only focused on helping adults fall asleep in time

Current Status

Angel round closed November 2019- MVP launched March 2020- Early revenue April 2020.

Scaling content and marketing as we speak

www.sagasleep.com for app download links

Market

Women, age 18-55, in capital cities in CIS region (former Sovyet Union)
Russians today spend 50mi USD on health and fitness apps (App Annie), a spending that grows 20% a year and will be 100mi by 2023. We then take 4% of that market (Our own business plan)

Problem or Opportunity

Problem

That people can not fall asleep in time in the evening. 16.9% of adults have problems 3 or more times per week in Russia (Bochkarev et al, St Petersburg Almazov institute, 2018). Today they solve this with reading offline books, listening to audiobooks or eating (Saga research among 300 adults in Russia, 2019)




Solution (product or service)

Saga offers instead specially written Russian sleep stores, 30-45minute long stories about something real, that touches the Russian soul, but is written in order to lull user to sleep in 15 minutes. They are narrated by celebrities. Russian users love the product, about 20% of all users are active any given week. CAC has come down from 1,3EUR to current 0,3EUR after iterating multiple times with ads and texts.

Russia is not crowded with sleep apps and we can win the top position, we are already showing traction towards that and we have caught the attention of Russian sleep professors.

Competitors

Meditopia - Russian meditation service
Calm and Headspace (Only English)

Advantages or differentiators

Only Russian localised content

Adding digital psychology service will create unique combo of sleep stories + sleep psychologist service

Finance

Freemium app - get some for free, sign up for subscription for 3 USD a month to get all premium content, get 1 new sleep story per month at least. Google and Apple consolidates and send money to our bank account monthly, after their 30% sales commission. In 2025 we have about 600 000 USD in monthly revenues

Costs over 5 years
Marketing is average 63% of all costs
Content is 8%
IT is 1%
Admin is 29%

Invested in previous rounds, $

 
$ 50.000

Business model

Freemium

New sales, Monthly active users, WAU, DAU, Retention rate are key indicators, among 20 that we track.

Money will be spent on

Marketing (180k)
Content scaling (70k)
IT and outsourced marketing (30k)
Admin (240k) 5 new employees and office mainly

Offer for investor

20% of 500k, at a pre-money of 2,5MUSD valuation

Team or Management

Risks

That marketing is not enough
That product looses stickiness
That CALM comes in with a marketing war chest.

Incubation/Acceleration programs accomplishment

OIC (Kazan, region of Russia. Over the course of summer 2020)

Won the competition and other awards

Not yet
Endorsement of Russian sleep professor (not paid for) https://youtu.be/opaZaR8ONp0
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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