Nigeria
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Transcript of Nigeria
Nigeria 8th most populous country (150Million people)
8th largest producer of oil
Business capital city, Lagos, ranked 30th in cost of
living.
Only US city ahead of it is NY, 22nd, LA
55th, ...Chicago 84th
Source: mercer.com, Forbes magazine , NY Times
Current state of e-commerce in Nigeria
Paucity of e-commerce websites Fraud, identity theft, phishing Limited payment options Limited shipping options Complex websites
pay.com.ng Make payments online at pay.com.ng Make payments using a web-enabled phone No need for credit/debit card or bank account Ultra-secure system
3-factor authentication: password, pin and hardware
generated number 128 bit SSL website 160 bit SHA encryption of sensitive data
Easy to use website
simple.com.ng Integrated Internet services
Auction
Web shops
Real estate listing
Job listing
Auto listing
Classifieds
Advertisements
And more .......
9zencart
Open source software
Free to everyone
Only uses pay.com.ng
Features include: gift certificates, coupons,
discounts, shipping costs calculator
Milestones
pay.com.ng system in beta testing
simple.com.ng in beta testing. More features planned
Planned integration with 6 of the 24 banks
Pilot with Virgin Nigeria Airways
Pilot with Mona Hotels
Partnership with naijamessenger.com, Yoopta
Listing agreements with real estate agents and auto sellers
Financing sought
$5M to cash flow positive
Use of funds
Marketing budget $3M
Computer equipment to connect with 24 banks $720K
Computer servers and storage $280K
Operations $1M
Financing cont... $1M first round
Use of funds
Equipment to connect to 10 banks $300K
Marketing $200K
Computers for servers and storage $100K
Operations $400K
Revenue model pay.com.ng 0.5% transaction fee
simple.com.ng
$0.85 per listing for auto, real estate, job and auction
Additional 3% of closing value for auction
Advertisements
Future revenue from SaaS offerings
Cash flow projection
Year 2009 2010 2011 2012 2013Revenue 2,000 8,500 60,000 125,000 210,000COGS 220 850 6,000 12,500 21,000Gross profit 1,780 7,650 54,000 112,500 189,000Operating expenses 3,000 5,600 14,000 22,500 34,000Operating income -1,220 2,050 40,000 90,000 155,000Net income -1,220 1,200 24,000 55,000 95,000Funding 5,000Cash flow 3,780 1,200 24,000 55,000 95,000Cumulative cash flow 3,780 4,980 28,980 83,980 178,980
Cash flow in 000's (USD)
Team Management
Lanre Sarumi CEO
Jamie Sabin CTO
Ibukun Dalmeida CMO
Advisory board Gbade Alabi, CEO CBC Ltd
Seun Peters, Partner, South Pacific Solicitors
Nike Ogunlana, Former ED, ARM Ltd
Jason Sissel, Founder, Sissel Capital Management
Exit strategy
Separate IPO of pay.com.ng and simple.com.ng in
4 years
Acquisition by eBay, Yahoo!, MSN, Amazon or
Summary
Hindsight is perfect, foresight is priceless