Product type: Saas.
Market Size: US$69 billion by 2020.
Investment Opportunity: US$500K.
Use of Proceeds
Expand to the MENA region to hit the two biggest markets “KSA &UAE”, which offers the social commerce their a better chance to keep up with the massive expansion of the market size.
Number of Employees: 9.
Eng. Mayla (as CTO) has years in experience in the AI and machine learning solutions, working in companies like IBM and Microsoft. then united with Eng. Maher (as business development director) and his experience in e-commerce and digital marketing that he acquired from working for more than 7 years in this field in GULF countries.
with their combined knowledge
and months interviewing and testing prototypes with e-commerce businesses they started building their Solution with Maher as the business development director, and the marketing rockstar, and Mayla as a chief technical officer. they gathered a team, Esraa, and Yahia our Engineering gurus, Marwa our sales ninja that can sell your pen to you, Naglaa our content artist and Linda our researcher. together we are aiming to change the shape of the future with the new electricity “AI“.
≈ Investment Opportunity
The problem :
There are more than 30 million social commerce brands that sell on social media. They suffer from high operation cost, managing social media, orders, shipping, and finally marketing. Till they lose focus on the most important thing… their product.
The solution :
All in one e-commerce platform backed with AI utilizing the 3 edges of the internet web, mobile, and chatbots. Work with brand owners analyzing interactions, provide marketing tips, and recommendations, simple, and will increase brand sales by 180%.
When you hear about AI in e-commerce you say without thinking product recommendation for customers, and that is great, but why limiting AI to the end user, why not to integrate AI in the whole process from beginning to end. That is our mission in Ostoria, to be the most intelligent e-commerce platform that brand owners will use from the start to end, as channels for selling, an operation assistant to handle your payment and orders and, to be your own marketing specialist that study the market and provide you with insights, marketing advice, and recommendations.
The second edge Ostoria have is the integration with local payment, and shipping providers, for example, Aramex, Payfort, and Fawry, and you don’t have to do any special step to integrate, it all happen seamlessly.
Third and the coolest part, a chatbot that is integrated with your social media, that talk with your customers and sells your products for you.
Think of it as one of the core team members and your own assistant that will carry the burden with you, so you can only focus on the most important thing… your amazing product.
validating the market
we did realize the actual need in the market after validating our product. that was not an easy task. between performing “The Mom Test” and following bad leads, our way became as clear as a sunny day. to be able to create a full eCommerce solution you have to get your hands dirty, I’m not only talking about making surveys and asking the owners about the problems they face in their industry I’m talking about starting our own online store to face the real struggle. and that exactly what we did.
After finishing the MVP we gathered more than 200 Free users & 24 prepaid Customers in a period of two months.
the substitutes our potential customers are currently using
they have to hire a marketing specialist, Social media specialist, customers service team, and operations director. to get things running smoothly as Ostoria Does.
Shopify: lack integration with local providers and lack of AI engine for brand owners.
Magento and WooCommerce: Hard to configure and start, lack integration with local providers, and not powered by AI.
Social commerce brands that get most of their order traffic from social media, +250K in Egypt, and +30M worldwide.
We generate our revenue from 3 channels:
1- Monthly subscription by $23.
2- Shipping fees: $0.5 per order.
3- online payment fees: 1% per order.
Let’s run the numbers now on 1000 stores:
1- Monthly subscription for all stores: 1000 store * $23 = $2,3000 per month, which is $276,000 per year.
2- Average orders per store are 2 orders daily, so monthly we generate from all stores 1000 store * 2 orders * 30 days * $0.5 = $30,000 monthly, which is $360,000 average yearly revenue from shipping.
3- Average order price is $15, so total transaction fees on online payments monthly are 1000 stores * 2 orders * $15 * 30 days * 1% = $9000 monthly, which is $108,000 average yearly revenue from payments.
minimal total annual revenue for 1000 Stores = US$744,000. which equal to 0.003% from the market.
in other words, we can generate US$223.2M from only acquisition 1% of the market size. “minimum“
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