7 days & 1 hours
12.7% - 25.4%
min - max equity offered
A$300,000 - A$700,000
min - max investment sought
min investment parcel
What is the subscription with URBOTANIC, to whom and why do you offer it?
Is the subscription the same for people who purchase the Urbipods or do they get them free for a certain period?
How much is the percentage of revenue expected to be generated from subscription alone?
Also, if possible can you share with us the growth in terms of sales, social media follower since the offer video was created in August?
The Subscription plan is designed and ready to roll up after we successfully close our funding round. Many existing customers have already requested such an offer and it is designed for easy of reorder of consumable items. We expect that this will further increase our already strong customer engagement rates. People who purchase an UrbiPod already have 3-6 months supply of consumable items (seeds, coir and nutrient) in the starter kit. We are looking at introductory offers for people who are first to sign up for the subscription model and also free shipping offers.
We expect that consumable and other reoccurring sales items either from ad hoc orders and subscription models should ultimately lead to +50% of revenue - this will vary by market as they mature.
Our social media followers continue to grow and our penetration rates of the Australian market placed exceeds those of our North American competitors. It is difficult to attribute an increase in either sales and / or social followers to the CSF video alone as we continue to develop and implement new social strategies and we are improving in this area all the time. We are very happy to see the returns (sales, engagement) from our social campaigns increasing over time which gives us growing confidence going forward. That said, we know that we have under invested in marketing - both traditional media and digital - due to our lack of available marketing budget to date which the current fundraising will hopefully address.
Let me know if you have any other questions and would like further explanation to the above.
Replied to Mir Tawfeeq Ali Khan
How are you addressing your use of plastics, and their environmental impact? Have you considered producing them from recyed materials?
I'd also like to know which cutomers you're targeting leading up to the christmas period, and how.
We are very conscious of our plastic footprint and have already taken steps to minimise our impact and we have further initiatives planned. Firstly, we already recycle our plastic waste and use to manufacture certain items such as the false floor and name tags. We have also started trials using recycled plastics and work with a plastic recycling company around their quality to fit into our injection moulding process. We can make the UrbiPod from recycled plastic it remains a questions of quality finish, availability of high grade recycled plastic and cost - which we believe can all be addressed. We are also assessing the suitability of other more sustainable materials for manufacture.
The UrbiPod makes a great gift all year round - whether as a birthday gift, mothers & fathers day and of course Christmas presents. A number of our retailers have campaigns planned for Christmas and our digital marketing will target those people looking to buy a thoughtful and eco-friendly gift for those special people in their lives.
Don't hesitate to ask me any thing else you have on your mind.
Replied to Roy Duiven
I see it has improved YoY but still low. How much does it cost to manufacture each unit?
Yes the growth rate is good but as always we need to start somewhere.
The unit margins are reasonable for Australian Made product and will improve with increasing volumes and further manufacturing efficiencies. Happy to discuss in more deal over the phone. Regards Ray.
Replied to Jack Colreavy
I've noticed that there are some similar indoor growing systems on the (global) market (e.g. Miracle-Gro, AeroGarden). Your design is arguably nicer, but I'd be interested to hear in what other ways you (intend to) separate yourself from the competition? This may be of particular importance for any expansion into Asia.
On the same topic, do you intend to seek IP protection for the relevant Asian markets you may enter?
Finally, what opportunities do you see in product development for the UrbiPod?
Good questions. I'll answer them here but also happy to call you and discuss in more detail as the questions can require deeper explaining.
1. AeroGarden are the global leaders however at this stage are not entering the Asian market. Click and Grow, arguably second in the market who are predominant in Europe and US have expanded to Asia and list Singapore as their 3rd largest market. There are other products but none are yet to hold a sustainable market position in our opinion as you need a lot more than just a good product to be sustainable. Our launch product has some unique features which sets us apart from both Aerogarden and Click and Grow such as Pod size and mobility which allow for a broader range of growing such as Micro Greens and larger vegetables, salads and fruits which the former units do not accommodate for well. With respect to the Asian markets we believe our brand positioning of Brand Australia / Australian Made particularly for access to quality seeds, nutrient and growing media which are all either Australian Made and/or inspected and cleared by Australian customs will be very appealing to the wary Asian consumer around food quality and bio security issues - as seen with the strong demand for other quality Australia products.
2. IP Protection - we have had advice on IP protection and secured what we consider the appropriate level of protection and will consider to monitor with the expansion and release of new products. Again, we believe that Brand Australia also affords us a level of protection for those who might want to copy the product. Early mover advantage is also important.
3. We are excited about further UrbiPod developments and this is where the benefits of the Pod size and mobility really provide us with a clear advantage. Our customers are already asking for a "bigger" UrbiPod because they are now confident they have the tools and knowledge to grow successfully - that they want to grow more ! We have a couple of products that we are already working on and funding will allow us to bring them to market.
Again, very happy to call and discuss the above in more detail and we also have a couple of Webinars next week where I will explain in more detail and happy to answer further questions.
Replied to Sven Joakim Tiberg
Hi Ray, any plans for an IPO in the future? Yes or no and why? Great looking product!
Thanks, we are very excited about the UrbiPod and what we can achieve after a successful equity crowdfund.
That's an interesting question, currently we have no plans for an IPO and are targeting an exit through a trade sale, as we believe this would offer the best value to our shareholders. We see opportunity once we have hit key milestones for a trade sale to strategically aligned horticultural supply companies or kitchen appliance manufacturers. Happy to talk further if you’re interested and I appreciate the interest in Urbotanica.
Replied to Glenn Leese
Wondering what the ingredients are in the soil you provide?
Hi Nathan, firstly thanks for taking the time and showing an interest in our offer!
That's a great question, because the UrbiPod is designed to grow inside it was important to us to use something that kept it appealing and safe to grow in the kitchen. Rather than using traditional soils which could give off unpleasant odours, we instead use Coir, a 100% natural by-product of growing coconuts. It's Eco-friendly and has a high water retention capability, making it perfect for growing in Pods. It also has several other benefits when it comes to transport. Coir is an inert substance which means it can be shipped around Australia, and is easily compressed to reduce its size in transit. The UrbiPod is designed however to work with most growing media such as perlite, vermiculite and soil, should the consumer choose to use something different.
Replied to Nathan Kinch
Urbotanica CSF Offer Document
This is the Urbotanica CSF Offer Document as at 26 September 2019.Download
The investors below have committed capital to the business in this funding round.