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Boxme
We supported Boxme in preparing their investment case with metrics and KPIs and the related financial models to raise funds from their venture builder
#Logistics #Asia Pacific
Company & Background
Founded in 2015, Boxme is a fulfillment network in Southeast Asia that enables worldwide merchants to sell into the region without establishing local presence, providing an advanced technology to maximize clients’ full potential in logistics.
Challenges & Needs
Boxme wanted to raise a formal venture funding round to accelerate their growth, but had different issues like their complicated organizational structure or the lack of a clear value proposition caused by growing the number of their products and services.
Solutions & Impact
We worked with Boxme and their venture builder Nexttech.Asia to provide solutions to the challenges like the value proposition design and consolidation, company structure restructuring, the collection and production of growth data, financial data, and the creation of an venture-worthy investment case and fundraising materials.
These messages keep our motivation high and our team going strong
” FFA was of great support in addressing some open internal challenges in our organization and provided the best guidance I could hoped for during the investment preparation “
Loi Han
” FFA was of great support in addressing some open internal challenges in our organization and provided the best guidance I could hoped for during the investment preparation “
Loi Han
CEO | Boxme
Company & Background
Founded in 2015, Boxme is a fulfillment network in Southeast Asia that enables worldwide merchants to sell into the region without establishing local presence. Boxme offers last-mile delivery, international shipping, warehousing and fulfillment services. Boxme builds up its capability by partnering with local logistics partners (subject to revision). After over 2 years of operation, the model has proven to be successful, allowing the company to obtain gross revenue of $1.73 million for the first 10 months of 2017.
Challenges & Needs
Boxme wanted to raise a formal venture funding round to further develop its presence in Vietnam and Thailand as well as finance its expansion into four other Southeast Asian countries, namely Malaysia, Indonesia, Singapore, and Philippines.
The company felt that they had different issues with their investment readiness:
- From an internal perspective in terms of cap table, complicated organizational structure, and due diligence readiness.
- From an external perspective in terms of lack of clear value proposition caused by growing the number of their products and services and availability of specific KPIs and metrics for each growth market.
Solutions & Impact
We provided solutions on the following
- Problem/solution mapping & value proposition: We reviewed the key problem statements for cross-border fulfillment and mapped those with the latest product and services of Boxme, in order to design a compelling value proposition while being able to explain that clearly to potential investors
- Review and restructuring of the company structure: Shortly after the beginning of the project, we realized the company structure could pose a threat for the fundraising since part of the business was carried out by an entity, not in the scope of the fundraising (belonging to the same venture builder). We therefore proposed a reorganization to simplify the corporate structure and the overall offering
- Data collection and analysis: We started working with Boxme on identifying all information gaps. While Boxme was experiencing interesting regional growth, they had very few insights on important elements of their business, such as merchant acquisition costs, CLTV, and margins. Together with the team, we defined methodologies to collect the data and we later analyzed it in order to prepare the pitch deck and financial model
- Financial model and projections: As the business model of Boxme had various complexities (multiple products & services, different regional units) – we invested time to prepare a financial model covering all the business mechanics and that could be defensible in the eye of the investors – using all KPIs and current performances as base for the assumptions underlying the projections
- Investment readiness check-up: In order to prepare for the fundraising, we applied the FFA Investment Readiness Framework to identify all remaining information gaps to be solved by the company prior to contact potential investors. Some of the gaps were then closed by FFA with ad-hoc support (such as market research & opportunity quantification and competition analysis), while the remaining gaps have been closed by the Boxme team following FFA guidelines.
Our Impact
- Company restructuring: we worked with the company and the venture builder on restructuring the entities involved in the fundraising, in order to remove any possible obstacle during due diligence
- Investment-ready material: we developed a sound and defendable growth & investment plan with Boxme, clarifying the value proposition and setting clear milestones for the next investment round
- Successful funding deal: Boxme closed an undisclosed 7-figure investment from one of their previous investors exercising their right of first refusal – who decided to fund the next phase of growth after being convinced by the plans developed by Boxme and FFA.
