Connecting dog owners with local borrowers across the UK and Ireland
There are 9m dogs in the UK and Ireland. They all need plenty of exercise, love and attention but unfortunately many owners are not in a position to provide for all of their dog’s needs. At the same time, there are many dog lovers who would love to own a dog, but for practical reasons are unable to do so. BMD provides a solution for both by connecting them, and is spreading happiness and saving money for its members in the process.
PRODUCTS & SERVICES
BMD Is an early stage business, however, it has a proven product, a developed platform and a significant subscriber base. The Company provides a service that enables dog owners to “match” with borrowers who provide dog care for no cost. The Company is built around an annual subscription model, which costs £44.99 for owners and £9.99 for borrowers. This covers a 3-step verification process and provides access to a 24/7 Vet line and third party liability insurance. The team plan to build the business from its current membership base (39,850 subscribers at November ’15), to 365,000 by 2019.
BMD has created a growing community of dog-lovers, connecting two groups: owners and borrowers. There are over 9 million dogs in the UK and Ireland and many owners are not in a position to be with their dog full-time. The traditional solution is to pay for dog walkers and kennels, which are expensive, impersonal and of variable quality. At the same time, there are many dog-lovers who would love to own a dog but are unable to do so. The company provides a solution for both, by bringing owners and borrowers together on its platform. Members’ identities are verified and owners and borrowers can then communicate via the platform depending on their location, availability and needs.
The key driver behind the revenue model is the growth in the level of bookings, especially those from owners. This is based on initial month-on-month growth of around 4% for the balance of 2015 (below the 7-9% actual performance this year), increasing to 11% for 2016 and then reducing to 5% over the period covered by the projections. An attrition rate of 1% per month during the remainder of 2015-2016 is assumed (against actual in 2015 of around .66%), rising to 1.25% for 2017 and beyond. The projected number of signed up and paying owners by the end of 2019 represents 2.1% of the current estimated level of owners across the UK and Ireland.
The management team is focussed on growing the business and delivering an exit for investors after three years. The most likely exit route for investors will be by way of a trade sale. Potential acquirers may come from several sectors: pet insurance, retailers of appropriate products or one of the existing ‘online marketplace’ dog care sites. An exit as part of a larger fundraising exercise may be possible. There has been significant interest from PE firms in the collaborative consumption and membership services sectors, and this may also offer an exit route. An IPO may offer an alternative exit route.