7 days & 7 hours
2.5% - 11.4%
min - max equity offered
A$250,000 - A$1,250,000
min - max investment sought
min investment parcel
How big is the customer base today and what % market share you looking in these regions to come to profit. What is % of margins from each customer. Thanks.
Due to the markets we operate in our model is very different to the normal app user one, let me explain as best I can.
We have two sides to our market,
a) the Users (Farmers and Fisherfolk) who benefit and in the long term pay subscription and transaction fees
b) the beneficiaries (NGO's banks, commodity buyers) who subsidize or pay us to provide the phones and service to users.
So unlike companies that deploy an app, or sell software and collect fees we don's really have a margin per customer or are reliant on a % market share. We simply select the projects where most of our costs are covered one way or the other.
So for the next few years the majority of revenue comes from B, these projects are nominally profitable and build up the user base at little or no cost to us or the Farmers.
As the user numbers build up into the 10's of thousands (a few of the 2020 projects are that size) then the direct revenue (transaction and subscription fees) become more significant and in a few years they become larger than the revenue from B.
This is explained in more detail in pages 29 to 31 of the offer document.
Hope that helps,
Replied to Jogeshwar Preet Singh Kuckreja
What countries are you focusing on at the moment ? What is the size of your market
Oh and we have a great video coming out in about a week showing our teams in the field working with the farmers in all those locations... stay tuned ;-)
Replied to Nidhi Srinivas
Our live projects are in Papua New Guinea, Ethiopia, Sierra Leone and Trinidad, we are also in the advanced stages of preparing a roll out Indonesia but don't yet have a partner willing to fund it.
We have partners in Philippines, Bhutan and Mali for whom we are preparing a white labelled version. There are at least 20 other potential projects in different countries that we don't have capacity for at this time, and that's the whole reason we are raising investment. We keep needing to say no to great projects.
The total addressable market (TAM) just in those 8 countries is over 120 Million smallholder farmers, The global TAM is over half a billion, World Food Programme, who is our partner on the Ethiopia project have a reach of over 90 Million globally.
Replied to Nidhi Srinivas
Will you offer a dividend reinvestment plan?
Thank you for the question its a bit of a long answer, the short answer is highly likely Yes when it is the appropriate time.
However, AgUnity is growing in a massive largely untapped market sector (often referred to as TAM - Total Addressable Market) the TAM in our case is billions of users.
In such a situation when a company is successful and growing it is normal to reinvest profits to grow markets or enter into new markets, expanding the market opportunity rather than retaining profits and paying dividends. This market growth normally increases the company share value (at least proportionally, often much more) for the next investment round.
This has what has happened so far, every time we raised investment it was at a progressively higher value, and I hope to continue that for a few years until we are a good candidate for becoming a publicly listed company.
We presently have well over 20 potential partners in different countries that would work with us to roll out tomorrow if we had the bandwidth to support them, and I see no reason that the pipeline of opportunities wont keep growing for many years.
Therefore we will keep focusing on growth and increasing the share value for a few years at least. This is similar strategy to what companies like Google, Uber and Netflix followed for many years.
If we do reach a point of paying dividends which would probably be after a public listing, then I see no reason why we would not create a reinvestment plan, however that is a decision which we would at the appropriate time take to the board and possibly a shareholder meeting.
Hope that's helpful and we've love to have you as part of AgUnity,
Replied to Stephen Reid
The investors below have committed capital to the business in this funding round.