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Buymie

Platform:
Crowdcube
Stage:
Expansion
Industry:
Retail
Location:
International - Europe
Date Rated:
06/12/17
Raise:
£350,000
Equity:
11.63%
Valuation (Pre Money):
£2,659,458
Industry: Retail
Location: International - Europe
Platform: Crowdcube
£350,000 Expansion
Valuation: £3,009,458
Date Rated: 29/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Buymie is an on-demand grocery collection and delivery service, allowing users to receive their goods from a range of retailers in as little as one hour for a commission and a delivery fee. Currently operating in Ireland, these funds will be used to invest in the platform and to expand to the UK.

Financial Overview

Year 5
Date (y/e) Year 1 Year 2 Year 3 Year 4 Year 5
Sales Year 1£1,656,397 Year 2£11,815,863 Year 3£34,855,425 Year 4£80,934,547 Year 5£173,092,791
Gross Profit Year 1£308,922 Year 2£2,083,792 Year 3£6,082,702 Year 4£14,013,576 Year 5£29,839,925
GP as % sales Year 119% Year 218% Year 317% Year 417% Year 517%
Overheads Year 1£1,209,469 Year 2£2,622,823 Year 3£4,952,129 Year 4£9,063,281 Year 5£16,537,311
Operating Profit Year 1-£900,547 Year 2-£539,031 Year 3£1,130,573 Year 4£4,950,296 Year 5£13,302,614
OP as % sales Year 1-54% Year 2-5% Year 33% Year 46% Year 58%
Closing Cash Year 1£99,453 Year 2£8,060,422 Year 3£9,190,995 Year 4£14,141,291 £27,443,905

Note: This financial information has been sourced from the company on 30/11/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd. Closing cash positions are inferred based on EBITDA. Sales figures represent Gross Transaction Value.
60%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Buymie team is clearly talented, but they would have benefited from the inclusion of a skilled marketer. They have highlighted this as an intended use of these funds.
The team is experienced and benefits from an embarrassment of prestigious advisors.
Some team members have other ongoing commitments and a number of senior roles are to be filled post-funding, leaving them as currently unknown quantities.
55%
MARKET:
PRODUCT:
COMPETITION:
The online and convenience segments are two of the fastest growing parts of the groceries industry and 3rd party on-demand delivery services are a niche that has yet to be fully exploited.
Buymie has received a lot of press and favourable reviews for it's service. International expansion and data services should add significant upside and growth potential.
There are some competitors operating in or near this space, some of which have recently received significant funding. The on-demand leaders (Uber, Amazon, etc) are a further threat.
64%
PROFITABILITY:
CASHFLOW:
RETURNS:
Buymie's financial projections show a detailed plan with defined cost centres and a well considered acquisition model.
There appears to be a large amount of headroom built into the plan and the business model should support growth with little cash requirement for expansion.
If the proposed growth can be achieved then there is a good chance that investors will see significant returns. Buymie plans a major round next year so investors should prepare to follow-on.


Conclusion

Buymie's team has built a service in Ireland that receives good reviews (a difficult achievement for on-demand service companies) and has received a lot of interest from the press and accomplished investors/entrepreneurs. These funds should allow the team to address any organisational weaknesses and start to rapidly scale their business and launch in the UK.

The UK is however a much more competitive market and major players such as Tesco's now moving towards same day delivery. This makes the target of £173m GTV in year 5 even more ambitious, but the team is strong and clearly on top of their growth metrics so the target could well be achievable.

Related Links

Crowdcube Pitch

www.buymie.eu

 

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The Ratings we publish have been approved and issued at Financial Promotions in the United Kingdom by Wheatfromchaff in the United Kingdom who is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. Wheatfromchaff Limited registered office is Kilver Court, Kilver Street, Shepton Mallet, Somerset, BA4 5NF and telephone number +44 (0) 1749 347 577. Telephone calls may be recorded. VAT No: 214 0196 49

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