In 6 months, we would like to have
1. A market fit product with at least 5000 customers who are actively using our platform.
2. Raise pre-seed funding of at least $200,000 to help us improve our product offering and operations.
1 Sale Lead $4000
1 Marketing Lead $4000
Marketing & Ads $12,000
1 Frontend Engineer $4,500
1 Mobile App Engineer (Android) $4,500
1 Mobile App Engineer (iOS) $4,500
1 Backend Engineer $4,500
1 Blockchain Engineer $4,500
1 Product Designer $4,500
1 Product Manager $4,5000
We are now in the beta testing phase. While at it, we have begun some pre-launch marketing campaigns with over 50 users already signed up for when we are ready to launch in June 2022.
Problem & Solution
According to PwC’s MSME survey of 2020, there are 17.4 million SMEs In Nigeria, and even though small and medium businesses contributed 48% of national GDP, and account for 96% of businesses and 84% of employment, it is often difficult for them to raise working capital. The traditional method is expensive, slow, and paper-heavy. Also, according to The Small and Medium Enterprises Development Agency of Nigeria, 82% of SMEs fail due to cash-flow issues while waiting for 30, 60 sometimes 120+ days for vendor payments, yet there are trillions in A/R monthly in Nigeria.
Quidroo is an online platform where transactions are streamlined and SMEs get paid within 72 hours by selling their invoices to get fast cash at favorable rates. Our customers are Nigerian SMEs, who find it difficult to raise working capital for their business. Our online, no collateral, invoice crowdfunding marketplace offers a fast, less expensive, secure, and automated environment where transactions are streamlined and SMEs get paid faster by selling their invoices for fast cash offers at favorable rates.
How does Quidroo use Stellar?
Quidroo needs to be accessible not only to Nigerians but to potential users all over the world. But there is the challenge of cross-border payments and local fiat currencies limitation where Investors outside Nigeria would find it difficult to fund their Quidroo wallets. Moreso, our transaction process is relatively simple and logical, however, it can be marred by the lack of a real-time mechanism to track the invoice throughout the whole process journey, thus opening up the whole process to high risk of fraud, and the need for manual documentation. This is very time-consuming but can be avoided or mitigated using the Stellar Blockchain Technology to:
- Provide access to Users anywhere in the world through the integration of Stellar USDC
- Initiate and confirm transactions through Stellar distributed blockchain ledger
Thus, based on the above needs/solution which can be clearly met using Stellar, Quidroo can achieve her goal to optimize for quick, transparency, and efficient invoice financing for SMEs
Our target market is the 17.4Million SMEs in Nigeria. The market size for our offering is $2.46 Billion as of 2020.
Our Revenue model is 3 fold:
- We have a subscription fee for SMEs that want to use our platform, the subscription fee is N10,000/ year.
- Management fee that the Investors need to pay to be able to bid for invoices on our marketplace. The subscription fee is N60,000/year
- Auction commission is what Quidroo earns from transactions. Currently pegged at 10%
Sales and Financial Forecast
We are currently not profitable but will be by end of year 1 if we have 2,800 customers. With an average transaction size of $10,500 Customer MoM growth rate of 10% and an average invoice discount rate of 7%, we will achieve a Net Income of $112,573K. By year 5, if we grow our client base to 274,000 customers we will achieve a Net Income of $64,989,866.
Industry and Market Research
Whereas bank financing has for a long time dominated global trade finance, factoring is one of the fastest-growing instruments for structured trade finance in the world. The global factoring market was valued at $2.92 trillion in 2017, according to data by Factors Chain International (FCI) – a global association of institutions offering factoring services, setting industry standards, and engaging in training and capacity-building.
According to the Managing Director for Intra-African Trade Initiative, African Export-Import Bank (Afreximbank), Africa’s factoring volumes grew from $16.8 billion in 2009 to approximately $25.17 billion in 2017. In 2018, Africa’s factoring volumes grew further by 2 percent; but the continent accounted for only a meager 0.8 percent of the global value, which grew to $3.11 trillion, according to FCI. Europe dominated with 66.1 percent share; and Asia-Pacific, 24.1 percent. The projection is that the market will grow at a CAGR of 14.6 percent to $9.3 trillion by 2025, according to Adroit Market Research. By 2020 the global market grew to $3.32 trillion, for Africa $31.58 billion. The serviceable market for Nigeria for 2020 is $2.46 billion
Some of the startups playing within the invoice factoring industry include Lidya, SukFin, Acudeen amongst other players. However, none of them are women's businesses focused nor have a good grasp of the Nigerian Market.
Our competitive advantage includes:
- Our SMEs get paid within 72 hours, cutting waiting time by at least 90%
- Depth and breadth of experience of our co-founders
- Our "women first" focus means we are going to have a desk focused on female-owned SMEs
- Quidroo Risk Assessment score is generated internally taking a mix of public and private information. This will help in reducing default risk
There are 17.4 million SMEs In Nigeria who needs access to working capital on a daily basis and our go-to-market strategy is 3 fold: Lead Generation, Key Partnerships, and Marketing Communications.
- Lead generation includes a direct approach to SMEs, Vendors, and Investors, Promotions on LinkedIn, Angel Networks, Partnerships with Banks, Lending Houses, SMEDAN, Chambers of Commerce, Partnerships with Accountants, Lawyers and Offer of referral fees
- For Key Partnerships, it includes Partnerships with Banks, Lending Houses, SMEDAN, NEXIM, IFC, Partnerships with Chambers of Commerce,
- Office of SDGs, Partnerships with Women-focused organizations like WIMBIZ, AWEC, AWIEF, ALL
- Marketing Communications include Social media (Twitter, Facebook, Instagram & YouTube), Go Mobile, Promotions on LinkedIn, Press (e.g. Business Day, etc.), Build Quidroo Community, Creating content, webinars
Resources and Relationship
Quidroo is also a product of Silicon Valleys' Founders' Institutes (Lagos) pre-seed accelerator program where our solution has been vetted and validated by over 20 mentors, directors, and industry CEOs. Not only has FI provided the right structure, but they have provided the right information and training to ensure that our organization succeeds and is able to make the necessary impact in our society.