Urbotanica
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Urbotanica Australian Made & Owned Urban AgTech Solution to Grow Your Own at Home
  • Consumer Products
  • Environment and Clean Tech
  • Health and Fitness
  • Internet Business
  • Agriculture
  • A$158,880

    invested

  • 53% funded

  • 7 days & 1 hours

    time left

  • 12.7% - 25.4%

    min - max equity offered

  • A$300,000 - A$700,000

    min - max investment sought

  • A$320

    min investment parcel

INVEST IN THIS OFFER
Subscription Model

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?

Mir Tawfeeq Ali Khan posted on 09.11.2019

Hi,
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.
Regards
Ray

Ray Hart posted on 10.11.2019

Replied to Mir Tawfeeq Ali Khan

Pod and Product Recyclability

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.

Cheers.

Roy Duiven posted on 09.11.2019

Hi Aaron,
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.
regards,
Ray

Ray Hart posted on 09.11.2019

Replied to Roy Duiven

What steps are you taking to improve your gross profit margin

I see it has improved YoY but still low. How much does it cost to manufacture each unit?

Jack Colreavy posted on 19.10.2019

Hi Jack,
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.

Ray Hart posted on 19.10.2019

Replied to Jack Colreavy

USP

Hi Glenn,

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?

Many thanks!

Sven Joakim Tiberg posted on 18.10.2019

Hi Sven,
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.
regards
Ray

Ray Hart posted on 18.10.2019

Replied to Sven Joakim Tiberg

IPO

Hi Ray, any plans for an IPO in the future? Yes or no and why? Great looking product!

Glenn Leese posted on 15.10.2019

Hi Glenn,
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.

Ray Hart posted on 15.10.2019

Replied to Glenn Leese

Ingredients in soil

Wondering what the ingredients are in the soil you provide?

Nathan Kinch posted on 03.10.2019

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.

Ray Hart posted on 03.10.2019

Replied to Nathan Kinch

  • > Offer Type: Australian Retail (CSF) Offer This offer is open to Retail and Wholesale/Sophisticated investors in Australia. Whilst in New Zealand the offer is open to Wholesale investors.
  • > Company: GYO Solutions Pty Ltd Securities purchased are for direct equity in GYO Solutions Pty Ltd.
  • > Security Type: Ordinary Shares
  • > Fees Paid by Issuer: 6.50% of funds raised Upon successful completion of this funding round a total of 6.50% of capital raised will be paid by the Issuer to Equitise.
  • > Cooling-Off Rights: 5 working days - Retail investors in Australia are able to withdraw their applications for securities with accordance to the Australian Crowd Source Funding (CSF) regulations. For more information please click on the link supplied.
    More Info
  • > Related Parties: None

More detailed information about this offer is contained in this Offer Document

Offer Document
Offer overview

The Company GYO Solutions Pty Ltd trading as Urbotanica is offering 937,500 to 2,187,500 shares under the following terms:

Executive summary

Increasingly, people aspire to grow their own food at home. However, there are many challenges preventing them such as less time, less space and a lack of knowledge. Urbotanica is focused on solving these problems through the application of and access to emerging Urban Agriculture Technology (AgTech) to empower people to Grow Your Own (GYO) fresh produce at home. 

Urbotanica takes advantage of global trends of sustainability, urbanisation and health & wellness through an impassioned consumer market for access to fresh, quality, sustainable and safe produce. Urbotanica does this by connecting with the expanding number of conscientious consumers looking for solutions to GYO at home. We target the Urban AgTech consumer market by developing innovative solutions for loyal customers in Australia before entering Asia with Australian Made quality products.

The launch product from mid-2017 is the UrbiPod, an innovative kitchen benchtop appliance with more than 1,500 units in the Australian market and highly engaged customers regularly re-ordering quality consumables (seeds/coir/nutrients). 

 

Investor rewards

Investments over the amounts listed below will in addition to the shares purchased in the company receive (for further information see section 3.4 of the Offer Document): 

Business model

 

Currently, our main sources of revenue are from UrbiPod unit sales (current RRP $229 plus delivery cost) and on-going recurring sales of replenishment consumables.

The UrbiPod is our 1st customer acquisition and engagement tool and through continued successful growing, our customers are encouraged to buy additional consumables and in some cases, multiple UrbiPod units. We are already getting strong demand for additional UrbiPod models with added functionality.

We have tested and adopted a multi-channel sales approach that delivers an appropriate gross margin contribution including:

E-RETAIL - Via our own webstore which features product information, how-to videos
and FAQs.

RETAIL – We have the UrbiPod featured in an expanding network of national retail
stores.

DIGITAL – We have invested in social media & digital channels and gained over
6000 followers on our platforms. To date over 1 million viewers have seen our social
media content.

INFLUENCERS – We have developed a solid understanding of the influencer social
media market and their associated cost/benefit.

DIRECT CHANNELS - Schools, retirement villages and corporate offices,
leveraging the additional social and community benefits of our offering.

For further information on Business Model and Growth Opportunities please see section 2.7.1 of the Offer Document.

Use of funds

The table below sets out the intended use of funds raised under this Offer based on the minimum and maximum subscription amounts (for further information please see section 3.2 of the Offer Document).

Financial summary

For a full breakdown of the financials for GYO Solutions Pty Ltd please see section 2.11 of the Offer Document. 

Risks facing the business

The table below is a summary of the main risks facing the business. Please refer to section 2.12 of the Offer Document for a full breakdown.

Ray Hart

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Neale Anderson

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Greg Wheeler

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Myles Barnard

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Matthew Owens

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Tim Davidson

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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.

Snowy1929

2019-11-21 12:20:42

Cherie Hyland

2019-11-16 11:38:19

See profile
tech9

2019-11-10 17:42:04

S

2019-11-10 14:49:33

Roy Duiven

2019-11-10 08:41:11

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Liam Lorigan

2019-11-08 23:15:07

Technology Sales

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Malachy Condon

2019-11-07 18:44:03

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vanelderen

2019-11-07 17:21:44

Grant Mason

2019-11-06 14:46:53

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Ricardo Batista

2019-11-05 17:22:43

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Silvana Vogiatzakis

2019-10-28 15:18:18

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Anonymous

2019-10-28 10:53:53

Mark Goodsell

2019-10-27 13:22:27

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Yukihiro Sato

2019-10-26 11:39:27

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Michele Kenny

2019-10-25 11:48:09

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Cusmanof

2019-10-23 20:29:04

Paula Russo

2019-10-20 23:40:24

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Win B

2019-10-20 09:48:19

Overtake

2019-10-20 01:55:08

Matthew Buck

2019-10-18 15:41:42

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Bianca Harman

2019-10-17 19:01:30

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Mark Greig

2019-10-17 18:52:38

Director

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Charlie

2019-10-17 16:48:27

5DL

2019-10-17 16:43:16

Dazza

2019-10-17 14:31:23

Doc Warriner

2019-10-15 20:22:08

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Jye Siemsen

2019-10-15 12:12:32

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Ryan Mullan

2019-10-14 23:12:22

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David Woolley

2019-10-14 20:14:52

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JAYNE HUSON

2019-10-10 20:46:07

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Andy

2019-10-10 16:02:31

Shane Keir

2019-10-10 15:00:25

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Antony Pennells

2019-10-08 09:55:06

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Robert Engelhard

2019-10-07 12:44:48

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Nate

2019-10-05 04:42:35

Akash Goyal

2019-10-04 18:10:52

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Jenny Cottle

2019-10-03 23:40:11

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Raymond and Susan Brown

2019-10-03 23:31:03

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Saurabh Ohri

2019-10-03 22:12:43

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Sankalpa Shrestha

2019-10-03 19:32:01

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Sheba

2019-10-03 18:30:46

Jonathan Gray

2019-10-03 15:34:28

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Kat

2019-10-03 15:19:15

DaveJ

2019-10-03 13:47:15

Sanbacca

2019-10-02 23:28:02

Paul McIlveen

2019-10-02 22:22:44

SarahLou

2019-10-02 20:27:20

Marianne Svahn

2019-10-02 14:41:47

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Trevor Hart

2019-10-02 13:01:09

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Tom Vogan

2019-10-02 12:01:26

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Laura Iacusso

2019-10-02 11:29:35

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Peter Atkinson

2019-09-30 20:12:05

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Ian Brown

2019-09-30 14:47:13

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Catherine McArdle

2019-09-28 18:09:57

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Greg Wheeler

2019-09-28 16:08:20

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Matthew Rigg

2019-09-27 17:45:18

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Nuala Thomson

2019-09-27 17:37:14

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Elspeth Lilburne

2019-09-27 16:51:14

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John Leach

2019-09-27 16:25:39

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wheels

2019-09-27 08:07:43

Lynn Barnard

2019-09-26 19:06:23

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Myles Barnard

2019-09-26 18:49:07

GM Operations

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Maxine Hart

2019-09-26 17:50:34

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Tim Davidson

2019-09-26 17:49:45

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Ashleigh Wheeler

2019-09-26 16:21:50

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Matthew Owens

2019-09-26 16:14:11

GM Marketing

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Ray Hart

2019-09-26 15:55:38

Managing Director and Co Founder

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Greg Wheeler

2019-09-26 15:42:40

Director & Co-Founder

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