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Mar 24, 2016 11:19 EST

WOBYBI – Custom bicycles at affordable prices: We assemble and ship unique bikes designed online by unique customers

iCrowdNewswire - Mar 24, 2016

WOBYBI

Elevator pitch

Custom bicycles at affordable prices. We assemble and ship unique bikes designed online by unique customers. Bikes transform cities and improve people’s daily lives. Our market-proven approach is transforming the mature bike market by offering more options at a lower cost and with fewer clicks than anyone else.

Investor proposal

After validating our value proposition in the Spanish market, Wobybi is ready to take on Europe. We seek a €109K cash injection to invest in marketing in the 6 European largest markets. Operations will remain in Spain, from where we will store, assemble and ship at no significant additional cost.
 
Price per Share: €277.78
B-Shares Offered: 394
Issue Amount: €109,000
 
We aim to secure a 5% market share in the target countries by 2020 (€5M+ revenue, €1.1M EBIT). Your investment would yield a return of 17% by dividends or 78% by exit cashout. 

Idea

The problem this product solves

Bike shoppers are frustrated with the limited options mainstream brands offer. Trendy bikes cost an average of €700 in our target markets.

How the product solves it

We give customers more than 850,000 different combinations through our slick online design platform. Our bikes’ average price tag is €270, half of the market average. 

Product

Product features

Eye-catching urban bikes. As easy as:
  1. Pick a model
  2. Customize it with colours and accessories
  3. Check out
 
Your bicycle will delivered, anywhere in Europe, within 15 days. Currently we offer five models of urban bicycles:
  • New Triana:28 inch low bar city bicycle, Shimano gear 6-speed.  
  • Milano: 28 inch high bar city bicycle, Sturmey Archer gear hub 3-speed.  
  • SoHo: 28 inch high bar bicycle, single speed and fixie gear.
  • Triana: 26 inch low bar city bicycle, Shimano gear 6-speed.
  • Milan: 26 inch high bar city bicycle, Shimano gear 6-speed.

Product use cases

Wobybi supplies trendy bicycles for daily use. 


Market

Target Market

The Association of the European Bicycle Industry quantifies the European bicycle market in €6.8B, 80% of which is spread among 6 countries (Germany, England, France, Netherlands, Italy and Spain). This is a mature, predictable market which allows us to forecast growth in a responsible manner. Our goal is to secure a 5% share of the European urban bike market by 2020. 

Competitive landscape

We compete with custom and non-custom bike manufacturers:
  • Custom bike manufactures. Three direct competitors offer bikes that can be customized via an online platform. All of them have launched their business after us and are focused in only one model of bicycle. We offer five models.
  • Non-custom bike manufactures. Most manufacturers produce large runs to reduce COGS but are not able to customize bicycles. Those that do not produce large runs, produce specialized bikes. 

Unique differentiator from competitors

  • Technology. Arguably the best online design platform.
  • Lean operation and fixed cost structure.
  • Financial agreements in place.
  • Outsourced supply chain.
  • Based in Spain, low human capital costs
  • Backed by Anima Ventures on development, marketing and admin.

Business Model

Company revenue streams

Wobybi has three revenue streams:
  • Custom bicycles B2C: Wobybi sells, assembles and ships custom bikes to end users.
  • Accessories and components B2C: Wobybi sells and ships bicycle components and accesories to final users.
  • Custom bicycles B2B: Wobybi designs and supplies Wobybi bicycle fleets by means of individualized proposals to business clients.

Product/service distribution

Wobybi has two complementary distribution channels:
  • Online: via an online platform in which the customer can design his own bike in an interactive virtual designer. We also offer accessories and components.
  • Offline: we have an exclusive network of workshops across the country. Dealers offer the end user all the products of our online shop including custom bicycles. End users design, with the workshop support, their bikes on site. Wobybi delivers the customized bicycles to Workshops, who serve them to the end user. 


Execution

Previous milestones/traction

During 2015, Wobybi:
  • Doubled turnover
  • Reached break-even during November 2015
  • Improved the net margin from negative figures up to a 22%
  • Reduce the structure of fixed expenditures from fixed costs to variables
  • Secured deal with a shipping agent to ship around Europe for 15-20 euros/bike.
  • Secured deal with CaixaBank to finance stock and sales during 2016 via confirming

Next key objectives

During 2016 Wobybi will:
  • Close a fundraising round of €200.000.
  • International Expansion. We will start marketing campaigns in our 6 target countries.
  • Outsource the storage and assembly of our bicycles, components and accessories.
 
From 2017 to 2020 Wobybi will:
  • Consolidate its presence in Spain and Europe.
  • Reach €5,000,000 in revenue. 

Previous Financing

Wobybi started with €4,000 invested by their founders at the end of 2013. Since then Wobybi has raised an additional €180.000:
  • Seed investment from the founders.
  • ENISA (National Innovation Company, Spain).
  • Anima Ventures: company builder.
  • BBVA and CaixaBank 

Industry Recognition

Industry Certification/Awards

Wobybi has received important awards for its innovative business model:
  1. The best business Idea of 2015 by Actualidad Económica, the first financial magazine in Spain.  
  2. Top 10 start-up, Pernord Ricard Entrepreneurship School.
  3. Finalist for the Concilia Award in 2014 by Fundación Máshumano.
  4. Member of the  BizSpark program for innovative start-ups by Microsoft

Use of Funds

  1. All funds will be invested towards growth by means of new customer acquisition in Europe and Spain. During the past 24 months we have improved and optimized the customer acquisition process in the Spanish market, reaching break-even by November 2015, and are ready to expand our business accross Europe.
  2. We aim to secure a 5% market share in the target countries by 2020 (€5M+ revenue, €1.1M EBIT). Your invest
Contact Information:

Alvaro Basterra
Alejandro de León

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