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Distichain

SaaS B2B e-commerce marketplaces, blockchain & AI enabled

UAE
Market: Trade, Blockchain, Artificial Intelligence
Stage of the project: Operating business

Date of last change: 20.05.2021
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Idea

Distichain delivers SaaS B2B e-commerce marketplaces in 2 weeks, digitizing global trade with end-to-end transactions through its fully integrated ecosystem of traditional and blockchain-based verification, supply-chain, and trade finance providers.

Current Status

We have delivered two marketplaces that are testing with small transactions. We will be delivering two more marketplaces in July. We have a pipeline of active and serious customers in different industries and regions.

Market

Distichain is aimed at helping businesses of all sectors, private and public, to digitize their trading. More specifically, industry organizations, cooperative societies, government entities, or private companies, can own a Distichain marketplace and bring together traders in the same vertical into one community for buying and selling their inventories.
• Individuals or companies looking to create/build a B2B e-commerce business.
• Companies looking to automate their existing supply chain using a secure and simple trade engine. Distichain can manage their sales or procurement channel(s) seamlessly.
• Governments, Free Zones, & Coops looking to facilitate trading communities

Problem or Opportunity

Distichain is tackling three main challenges:
- Lack of trust and security: B2C e-commerce uses credit cards to secure payment, but for large B2B trading this is too costly and card limits are an issue. Letters of Credits are costly, tedious, and very slow to support fluent trading, and “cash in advance” kills cash flow and puts the buyer at risk of fraud.
- Manual processes: Even after overcoming the trust issue, multiple email chains from both buyers and sellers are established with logistics, insurance, inspection service providers. SME’s do not have tech or know-how to integrate electronically with such providers.
- Limited insights and data: Unlike financial markets or commodity markets, wholesale markets for consumer goods do not have a source of data to reflect prices despite the heavy fluctuation of prices driven by supply and demand. Traders generally use experience and gut feel as their only tools to mitigate risk.

Solution (product or service)

By combining the best service providers in logistics, insurance and trade finance with the most innovative of these “fourth industrial revolution” solutions, we offer SME’s globally an intuitive user interface for them to trade using services normally limited to the elite few. Our marketplaces have all the functionality of any leading B2B platform, but we are also able to deliver more:
• Secure: By connecting to traditional & digital banks or Fintech providers, we facilitate instant trade finance securing transactions & allowing trading companies to give each other open credit terms, 100% risk-free without need for credit cards or up-front cash.
• Simplify: Zero email end-to-end automation of transactions with integrated logistics, insurance, & inspection services. Manage it all from one screen seamlessly.
• Empower: Distichain’s AI enriches users’ decision-making with a wealth of data & recommendations to optimize inventory management & maximize profitability.

Competitors

Competitors are: Mirakl, Uppler and we.trade

Advantages or differentiators

Distichain is the only trade engine built to deliver secure and simple B2B end-to-end transactions. Marketplaces offered by competitors lack at least one vector of our automated processes. Distichain has first mover advantage by securing and automating at a fraction of the cost, making B2B transactions as simple as B2C.

B2B Marketplace providers like Mirakl and Uppler do not offer innovative trade finance solutions which are crucial for a successful B2B environment. Distichain’s ability to offer instant trade finance securing transactions and allowing trading companies to give each other open credit terms, 100% risk free without credit cards or up-front cash is a clear difference.

Distichain’s engine is designed for traders to perform large transactions, >$50,000, while no other marketplace has this heavy capacity to solve entirely the current challenges as they offer a payment gateway tailored for smaller traded invoices.
Moreover, Distichain's business model is built to help companies digitize in a rapid (4 weeks) and at a low-cost rate. Marketplaces are charged a $20,000 fixed set-up fee for the core product, additional charges depend on integration requirements set by the client, and a minimal commission on GMV. Other marketplaces such as Mirakl, charge $160,000 as set-up fee, with an additional commission percentage on GMV.

Finance

Distichain has multiple planned revenue streams:
1. Core product: One-off activation fee of $20,000 of a branded marketplace.
2. Trading commission: 0.3-2% of all transactions performed successfully on our platform.
3. Paid value-added services for users on our marketplaces such as highlight certain products, companies, or service providers at a fee. This fee is shared with the marketplace owner.
4. Development Fees: A daily rate of $500 will be charged for customization offered to customers beyond the core product, for ex.: new functionalities or additional service providers integrations.
5. Service provider’s revenue sharing: Estimated at 5 to 15% of service provider revenue obtained from users of our platform. These service providers offer logistics, insurance, trade finance, etc. at a fee, and we negotiate rebates from them.

Business model

Trading volumes and active users will be considered as our key metrics to be measured for profitability. By the second half of 2020, Distichain should be fully operational with the recruitment of a sales and customer support team. Distichain will work via 3 channels:
• Direct sales and marketing reach.
• Recruitment of SaaS resellers globally
• In-country agents/influencers will be identified and recruited on a success fee.

Money will be spent on

Expansion of the technology team 36%, marketing and sales 14%, operations 27%, and other payroll 23%

Offer for investor

Safe note

Team or Management

Incubation/Acceleration programs accomplishment

We ranked as top fintech with an impact in the Finance Forward MENA 2020 program.

We are currently enrolled in two other programs:
- Newchip Accelerator
- StartupO cohort.

Won the competition and other awards

We have been recognized as one of the top blockchain projects of 2019in Swissborg Report.
We have been named finalists in:
- SME Awards Gulf Capital
- Best Fintech by Startups & Innovation Awards

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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