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Global Parallel - Youzan ($50B Wechat Saas: Shopify With Marketing Tools On Whatsapp For D2C Brands

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0% found this document useful (0 votes)
49 views24 pages

Global Parallel - Youzan ($50B Wechat Saas: Shopify With Marketing Tools On Whatsapp For D2C Brands

Uploaded by

samanthaargent21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Shopify with marketing tools on WhatsApp for

D2C brands

Global Parallel – Youzan


($50B WeChat SaaS)

Backed by

www.businessonbot.com
ABOUT BUSINESSONBOT
We h e lp 450+ D2C b ra n d s a cq u ire n ew u s e rs an d s e ll p rod u cts on Wh ats Ap p an d
I n stag ram. We do this by creating a Whats Ap p s h op an d offe rin g attrib u tion
b a s e d m a rketin g tools to acq u ire n ew u s e rs .

More at www.businessonbot.com
Team

Mohit, CEO Aditya, COO Kirushanth, CTO

• Worked as PM at Kotak • Worked in SaaS start-up • Worked as PM at Kotak


Bank on WhatsApp channel helping D2C brands in Bank on vernacular voice
(Acquired ~1 Million users Amazon commerce space based AI initiatives
in 6 months on WhatsApp (2018-20), JP Morgan (2018-2020)
channel) (2017-2020) (2017-18)

• B.Tech, IIT M (2017) • B.Tech, IIT M (2017) • Dual Degree, IIT M (2018)

Received acquihire offers from JustDial & ClearTax to build WhatsApp solutions

Prof. Mitesh Khapra


Dept of Computer Science, IITM Advisor
Vernacular voice/text based NLP
India is a country of 1.3 billion people, of which
450 million are already there on WhatsApp...

… but still no D2C brands has been able to


effectively drive sales on WhatsApp
The Problem

D2C brands are not Direct to Consumers!

1. Losing 25%+ margin to aggregators

2. Higher CAC on website and app

3. Not able to expand to vernacular users in India


The Solution

• Workflows with CRM integrations to drive sales on


WhatsApp

• Proprietary marketing automations to acquire new


users on WhatsApp and reduce CAC Live Demo
Traction – $1 million ARR (8X in 1 yr)
Revenue (in INR) - 12% MoM
80,00,000
₹71,00,000
70,00,000 ₹67,07,000

60,00,000 ₹57,08,000
₹54,62,000

50,00,000 ₹45,00,000
₹43,00,000

Revenue 40,00,000

30,00,000

20,00,000

10,00,000

0
Dec' 22 Jan' 23 Feb' 23 March' 23 April' 23 May' 23
Months

• Profitable in 5 months
• $5 Million ARR by 12 months
Unit Economics – 75% Margin

1. Net Dollar Retention = 99.7%

2. Net Logo Retention = 95%

3. 60% organic revenue


(100% growth in last quarter, PMF)

4. LTV/CAC : 10X

5. SaaS margin : 75%

6. CAC – Rs.4,500, Avg. revenue per customer – Rs.10,000


Breakeven of CAC in 1st month

7. (New ARR in quarter / Sales and marketing burn in quarter) >1


Fundraising

Milestones for series A


Seed
• Primary KPI : $2.5M ARR by EOY
$500K at $10M valuation cap • Growth rate : 10%+ monthly for 6-12
Majority cost in hiring months prior to raise
• Revenue expansion : Usage / Upsell
3 steps to create sales channel
Get A to Z on Official WhatsApp Account

1 Setup
WhatsApp 2 Drive
Traffic 3 Re-engage

• Ad integration • Recommendation
End to end commerce journey engine
inside WhatsApp with CRM • Referral / Brand Loyalty
integration • Reminders and
• Influencer tracking campaigns
Competitive Advantage

• Driving customer acquisition and sales by


understanding consumer behavior

• Product features with Network effects

• Trained vernacular AI in low resource language is needed to


acquire regional users
Eg: Hindi, Tamil, Malayalam etc.
Why BusinessOnBot in 8 players
Automated sales
Current WhatsApp
SaaS ecosystem in
India (D2C focus) -
ONLY 8 PLAYERS
1 Million ARR, 500+ brands
Market leader

No as confirmed by Meta

SaaS Marketing to
existing users

solution Marketing to
acquire new
users
exists to help D2C brands to acquire
new customers & drive sales on
WhatsApp

Manual sales
Addressable Market ($5B)

550,000 Europe
Brands 550,000
UK, Germany, Spain, Italy, Netherlands, Romania & Portugal

X $500/month
No. of Brands
Shopify + Woo Commerce

LATAM + SEA
200,000
Brands 200,000
+ MENA
X $400/month No. of Brands
Shopify + Woo Commerce $75M ARR
in India
INDIA Pessimistic assumption
- 25% brand dying rate,

200,000 $75M
15% capture

Brands Source: https://trends.builtwith.com/shop/WooCommerce-Checkout


X $200/month 200,000* https://trends.builtwith.com/shop/Shopify
200,000 brands by 2026, at current growth of brands in India
No. of Brands https://www.businessworld.in/article/Disruption-Proof-India-s-55-Bn-
Shopify + Woo Commerce D2C-Sector/01-03-2023-467383/
Current Business Model

D2C brands Avg. Maintenance • $120 / month / brand


Current : 450 brands Avg. Usage • $ 60 / month / brand
ARPU - $180 / month / brand
Net Dollar Retention – 99.7%

99.7%

99%

82%

Data 2 years prior IPO. Source - https://blossomstreetventures.com/2021/06/30/net-dollar-


retention-of-73-saas-cos/
Product Roadmap

Ambition
• Geography : International
market – Europe, LATAM
Expansion • US Market : Launch “Meta
• Launch DIY platform for inbox” to extend omnichannel
brands to launch engagement platform in our
WhatsApp store with product
marketing
automations in a day
CORE Long-term initiatives
• Omni-channel support with (1 year)
user acquisition and
retention tools
• Vernacular support Mid-term initiatives
(6 months)

Immediate initiatives
(3 months)
Appendix
contact – mohit.kumar@businessonbot.com
Call/WA - 9003120598
Global Parallel : WeChat SaaS in China

$ 7 billion
in transaction volume
via WeChat mini programs to
drive sales and user acquisition for businesses
D2C ecosystem

BusinessOnBot has launched a spinoff


called GroD2C for fostering content,
branding and community building in
D2C ecosystem
Powered by

By BusinessOnBot

D2C Community to network & learn from fellow 500+


D2C Founder
SHOUTOUT PROMOTIONS
L A S T Y E A R SPEAKER PROFILE
PANEL DISCUSSION

Click on the tiles to play video


FLASHBACK

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