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Droshi

The Alibaba of Europe - with a twist

We are happy to announce that our campaign has reached it's target... But don't hesitate to register your interest anyway! 

You can register here --> http://bit.ly/DroshiWaitingList

If any of the original investors should drop off, their shares will be offered on a first come/first served basis.

Investor proposal

We now offer you a chance to invest in a fast growing company with a scalable business model, proof of concept and a great team. In a short time we have become Northern Europe’s biggest drop shipping service with over 135.000 products from over 80 suppliers. To meet the increasing demand, we need to scale up our organization and therefore welcome new investors. 
 
  • Expected ROI of 10x within a maximum of 5 years and we will gladly buy back the shares you bought.

Product

The problem this product solves

Droshi solves the following common problems for both retailers and suppliers:
For Retailers
  • Expensive investment in stock and staff
  • Tying up capital in stock
  • Difficult and time consuming to find reliable suppliers with good prices
  • Difficult to find and expand product range with new products
For Suppliers
  • Difficult to handle single drop shipping requests
  • Time consuming and low profitability to handle single and small purchase requests and orders
  • Expensive to find new retailers to sell products to
  • Expensive investment in new IT infrastructure

How the product solves it

We’ve developed a cloud-based IT-system to handle drop shipping and bulk orders, and to connect retailers and suppliers.
 
With Droshi, retailers can choose over 85.000 products to sell without having their own stock (Drop shipping). Therefore retailers don’t tie up capital in stock.
 
For retailers that want to buy stock, Droshi is the perfect purchase channel with quality assured suppliers and pre-negotiated wholesale prices. There are currently over 135.000 products to choose from.
 
For suppliers, Droshi enables an easy way to handle orders for both drop shipping and bulk orders while simultaneously advertising their products to thousands of retailers.

Product features

For Retailers
  • Cloud-based service with user-friendly UI
  • Over 85.000 products to sell with drop shipping*
  • Over 135.000 products to bulk order*
  • Only verified and quality assured suppliers
  • API-connection to e-commerce platforms (pipeline)
  • API for stock status
  • Export product lists
  • Priority on new products
  • Unique service for bulk orders to wholesale prices
  • Multiple payment options
  • Connect multiple web shops
  • Valuable partner offers
* New products and suppliers added monthly
 
For Suppliers
  • Cloud-based service with user-friendly UI
  • Market products to thousands retailers
  • Simple product import
  • Approve retailers
  • Payment and order history
  • API-connection to integrate with other systems
  • System for stock management (pipeline)

Product use cases

Droshi aims to become the leading B2B-platform for drop shipping and bulk orders for all industries.
 
Droshi is used by Retailers that are running a:
  • Webshop and want to expand their range by selling with drop shipping
  • Webshop and want to expand their stock with products from quality assured suppliers to pre-negotiated wholesale prices
  • (Starting) New webshop and prefer minimized risk by selling with drop shipping
  • Physical shop and want to expand their range with new products
As well as Suppliers that want to:
  • Increase revenue and reach new markets
  • Find new retailers
  • Offer drop shipping to existing customers

Team

Jonas Salminen avatar
Jonas Salminen CEO & Founder
Jonas is a driven visionary and truly creative entrepreneur. He is someone who people tend to look up to and be inspired by. He has over 17 years’ experience from sales, has invented new products (filed for patent - sponsored by Almi) and has acquired great experience from the retail ... See more
Jonas is a driven visionary and truly creative entrepreneur. He is someone who people tend to look up to and be inspired by. He has over 17 years’ experience from sales, has invented new products (filed for patent - sponsored by Almi) and has acquired great experience from the retail sector. Jonas is a born leader with solid experience of running successful teams, both from the aviation industry and restaurant business. If you get Jonas on the phone, by the end, he has sold you something. Whether it is a product or an idea, he is a master salesman. Jonas lives, breaths and sleeps Droshi. See less
Nicklas Ohlsén  avatar
Nicklas Ohlsén CTO & Member of the board
Certified IT Architect focusing on delivering customer value instead of technical discussions. Been working over 20 years in the IT business within multiple branches (Insurance, Bank, Media, Pharmaceutical, Logistics, etc.) Has a background as a developer, working with everything from simple web solution to complex standard system integrations. Responsible for ... See more
Certified IT Architect focusing on delivering customer value instead of technical discussions. Been working over 20 years in the IT business within multiple branches (Insurance, Bank, Media, Pharmaceutical, Logistics, etc.) Has a background as a developer, working with everything from simple web solution to complex standard system integrations. Responsible for all aspects of the development teams to facilitating both business and IT development in all areas of digitalization. See less
Devina Choi avatar
Devina Choi Developer
Devina is a star developer with extremely broad expertise and passion for programming and design. She is also the creator of our animated film and trained animator! A true diamond that offers value to the team and that we have been lucky enough to find. She loves her job and ... See more
Devina is a star developer with extremely broad expertise and passion for programming and design. She is also the creator of our animated film and trained animator! A true diamond that offers value to the team and that we have been lucky enough to find. She loves her job and that shows in her work every day. See less
Andreas Leijonhufvud Wetche avatar
Andreas Leijonhufvud Wetche Sales manager
Sales manager with over 20 years of experience. Andreas is also a published writer and a popular lecturer on the topic of building relationships and company culture. Andreas has an entrepreneurial mind set and has previously helped both large and small companies around the world with sales and management. He ... See more
Sales manager with over 20 years of experience. Andreas is also a published writer and a popular lecturer on the topic of building relationships and company culture. Andreas has an entrepreneurial mind set and has previously helped both large and small companies around the world with sales and management. He is also the founder of the Five Star Service customer concept, which today operates in many different sectors of the economy. See less
Daniel Natanzon avatar
Daniel Natanzon Member of the board
Daniel has more than 12 years experience as an entrepreneur, owner, and board member of several companies within online business. He is currently partner and CEO at the digital agency Galax Media. Daniels role is to advise regarding strategy, online marketing and product development.
David Ashman  avatar
David Ashman Member of the board
Entrepreneur with extensive background in digital marketing and product development. With profound knowledge of the digital eco-system he has helped SMEs to big brands reach success online. David is one of the co founders of the digital agency Galax Media and holds a degree in Economics & Marketing.
Jan Grönberg  avatar
Jan Grönberg CFO & Substitute
Financial manager with over 17 years of work experience. Specialized in e-commerce, security industry and online retail.
Eva Flinck avatar
Eva Flinck Administrator
With a part time position at Droshi Eva is in charge of overseeing the product imports and the administrative work. Having previously owned her own child day care with 8 employees for over 10 years, makes Eva an expert in multitasking.
Julia Lopatin avatar
Julia Lopatin Costumer service & agent
Customer assistant with experience from the banking and finance sector as a team leader. Julia helps out with the customer service and also with representing our company during trade shows and client events.
Jasmine Lindfors avatar
Jasmine Lindfors Administrative assistant
Administrative assistant, part time. Being 16 years of age makes Jasmine the youngest member of the Droshi team. We are very proud to offer Jasmine her first job. Jasmine is a horse lover who dreams of becoming a veterinary, with her top grades that should not be a problem.
The whole team avatar
The whole team Droshi
Investing in a company means investing in the team behind it. We've formed a great team with different skills and mindsets. Company CEO and founder, Jonas, is a great salesman and a real visionary. Board members Daniel and David brings a pragmatic mentality to the company, with a great focus ... See more
Investing in a company means investing in the team behind it. We've formed a great team with different skills and mindsets. Company CEO and founder, Jonas, is a great salesman and a real visionary. Board members Daniel and David brings a pragmatic mentality to the company, with a great focus on details. Company CTO, Nicklas, is a top notch developer with great interest in programming. Nicklas has gone from being completely self-taught to one of Scania's most important IT-architects and developers, truly showing his passion for programming. All companies need an accounting genius, ours is Jan. He keeps track of the finances and the numbers. Droshis first full-time employee was Devina. She has been sitting side by side with Jonas and worked with product development. Besides being a rockstar developer from Stockholm University, she is also an educated animator. She has created the animated Droshi movie featured in this campaign. Our latest addition to the team is our Sales manager, Andreas Leijonhufvud Wetche. He is equally passionate about sales as he is about meeting new clients and building relationships. That really shows when you meet him. Andreas will be a great ambassador to build our company culture together with our CEO, Jonas. We also have 3 part time workers: Jasmine and Eva who work with administration and Julia on customer service who also helps out during trade shows and client events. This is just the beginning of the Droshi team. With your help, we will continue to grow and build our organization. With the best possible team, success will follow. See less

Market

Target Market

Our primary market is e-retailers and suppliers in Sweden and Scandinavia. As of today there are approximately 15.000 webshops in Sweden and 50.000 in Scandinavia. The e-commerce market is constantly growing. In 2016, Swedish e-commerce sales for goods increased to over 6 billion Euros (16% growth from 2015). The next step and market for Droshi is Europe with over 1 million webshops and e-commerce sales of goods increasing to over 250 billion Euros (12% growth from 2015).

As e-commerce and traditional retail merges via so called omni-channel, we see physical shops as future customers to Droshi as well. 

Competitive landscape

There are no other services in Scandinavia today delivering the same service as Droshi. There are however companies within the same niche.
Sweden:
  • Dropshippa.se (supplier listing)
  • Grossist.se (supplier listing)
  • Order.se (purchases and holds stock)
  • Dropship24 (connecting other drop shipping services)
Rest of the world:
  • Bigbuy.eu (holds stock, Spain)
  • SaleHoo (New Zealand)
  • Alibaba (China)
There are other services/portals, but they are either not active or focus on other target groups.

Unique differentiator from competitors

We provide a full-service solution for drop shipping and bulk orders. Everything is managed in Droshi. We only have verified and quality assured suppliers with whom we’ve negotiated the best wholesale prices. We constantly evaluate suppliers in order to keep only high quality suppliers. We’ve focused on attracting quality suppliers active on the Swedish and Scandinavian market to begin with. Because we don’t carry stock, we’re able to have a substantially larger product range than services that carries stock. E-commerce platforms will soon be completely integrated with Droshi. Orders will go directly from the web shop to suppliers (via Droshi-API).

Company revenue streams

Our business model is subscription based. Retailers and suppliers pay a subscription to use the service. Droshi also receives commission on goods sold.

Future revenue streams:
  • Selling pre-built web shops connected to Droshi product range
  • Peripheral services for stock management, APIs, integration with existing ERPs and ecommerce platforms
  • Premium support
  • Marketing and exposure of products
  • Banner advertisement and targeted offers via newsletters
  • Commission from our partner companies
Thanks to our unique position in the supply chain we are confident to discover and implement new revenue streams.

Product/service distribution

As our service is based on a cloud-based platform everything is handled online. Both retailers and suppliers can easily create accounts directly on our platform (droshi.com) and be up and running within minutes.

The largest part of our marketing will be via digital channels such as: Google AdWords, Facebook Ads and other relevant channels.

Some of the bigger supplier require personal meetings.

Execution

Previous milestones/traction

  • 2015 Feb - Registered the company and brought in GLX Media as part-owner
  • 2015 Q2 - Proof of concept from suppliers
  • 2015 Q3/Q4 - Business and product development. CTO brought on as part-owner
  • 2016 Q1 - First Beta of Droshi.com launched for suppliers. 5000 products in our product range
  • 2016 Q2 - 10.000 products in product range
  • 2016 Q3 - Hired a developer and first plan sold. Focus on developing the platform - many new functions and improvements
  • 2016 Q4 - 45.000 products in product range
  • 2017 Q1 - Over 135.000 products in product range. Approx. 300.000 SEK revenue.

Next key objectives

  • 2017 Q2 – Successful Fundedbyme campaign. Start of expansion with focus on marketing and sales. 170.000 products in product range. 9 new staff members.
  • 2017 YE – 300.000 products in product range and approximately 6 million SEK revenue.
  • 2018 – Expansion with sales throughout whole of Scandinavia. Approximately. 50 million SEK revenue.
  • 2019 – Expansion with sales throughout Northern Europe. Approximately 230 million SEK revenue.
  • 2020 – Expansion with sales throughout Europe.

Previous Financing

We successfully raised 420.000 SEK in a private seed funding round in November 2015.

Partnerships

We focus on creating attractive partnerships with companies that offers unique value to our existing customers and vice versa but also works as advertising of our business. We have already secured partnerships with web hosting providers, payment providers and other companies within the online b2b industry. Some of our partners are: Loopia, Visma, Dibs, Wikinggruppen, Carismar, Wasabiwebb, Inspobay, Galax Media, Divvit and Contentor. We have more partnerships on the way...

Use of funds

The raised capital will be used to build our organization, for marketing and further development of our platform. See attached budget for more specific information.
 
Minimum investment goal reached:
  • 4 employees, divided on 2 salesman,1 admin/customer service, 1 agent.
  • Substantially increased marketing budget
Maximum investment goal reached:
  • 9-12 Employees, divided on 5 salesman, 1 admin/customer service, 2 agents, 1 developer. Possibly 1 more admin/customer service, 1 IU/UX designer, 1 marketing manager.

Split for new capital: 70% on staff and 30% on marketing

Return on Investment


  • Expected ROI of 10x within a maximum of 5 years and we would gladly buy back the shares you bought.

Risk Analysis

We have identified three risk assumptions:
  1. Difficult to get quality suppliers to join
  2. Difficult to get retailers to join and use Droshi
  3. Competition from new players 
1 – We’ve been able to grow our product range with over 135.000 products from quality suppliers in a short time.
2 – We’ve gotten over 300 requests from retailers. Approximately 40 retailers are currently using Droshi. Even big retailers with over 500 million SEK in revenue (all with minimum marketing/sales) are interested.
3 – We welcome new competition! It will help us grow awareness and stay focused on bringing value to our customers.