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The future of e-commerce

We make it easier for suppliers and retailers to find each other and sell more. We are a B2B marketplace for drop shipping/direct delivery and retailers. In a short time we have become Europe’s biggest drop shipping service with over 600 000 products from over 120+ suppliers. Thanks to this crowdfunding campaign we will integrate Droshi with the most powerful e-commerce platforms in the world, Shopify, Magento, Prestashop & Woocommerce, which will give us access to millions of e-retailers.

Be a part of one of the biggest and fastest growing market in the world! Join the future of e-commerce.

Investor proposal

We love to have our customers with us on this journey! Your suppliers could be your company and vice versa. This is why we have a special offer you: 

Retailers.
Step 1: Minimum 1896 SEK = Basic 1 month Free (799 sek)
Step 2: Minimum 19 750 SEK = Pro 1 year Free (9999 Sek)
Step 3: Minimum 47 400 SEK = Enterprise life long Free (24 995 sek)

Suppliers: Free newsletters to retailers. Solid side banners & marketing in the system (until someone buys the spots). Better location on products in system. Free list of retailers and sales statistics.



Product

The problem this product solves

Retailers usually need to do big and expensive investments in a warehouse and employees, which binds capital that does not need an investment. It is hard and time consuming to find reliable suppliers with good prices to expand the product range. Drop shipping without our system works very poorly today with a lot of problems.

Suppliers has trouble handling single orders. It is time consuming with low profitability to handle small purchase requests och bulk orders and also also hard to find new retailers to sell to. It is an expensive investment in IT infrastructure.

How the product solves it

We have developed a cloud-based IT system to handle drop shipping and bulk orders, as well as linking dealers & suppliers.

With Droshi, retailers can easily choose from an unlimited number of products to sell without purchasing their own stock

For retailers who want to stock themselves, Droshi functions as a perfect purchasing channel with quality-assured suppliers and pre-negotiated wholesale prices.

For suppliers, Droshi enables an easy way to handle orders for both drop shipping and bulk orders, while the products are marketed to thousands of retailers. For both sides there will be less administration and only 1 integration


Product features

For retailers:
·         Cloud-based service with user-friendly interface
·         Over 600 000 thousand products *
·         Verified & quality assured suppliers
·         API for automation to e-commerce platform
·         Warehouse status API
·         Unique service for bulk orders at pre-negotiated wholesale prices
·         Easy ordering and payment
·         Possibility to connect several webshops
·         Valuable partner offers
·         Free drop shipping system
·         Customizable drop shipping solutions for large-scale retailers
·         Shopify & Woocommerce connected (+ many more)
·         One system and integration to all
 
* New products and suppliers added monthly 

For suppliers see business plan.

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 all startup companies with big dreams and goals needs. And for him, nothing is impossible as long as you have a good plan and team behind it. He has over 18 years’ experience from sales, has invented new ... See more
Jonas is a driven visionary and truly creative entrepreneur. He is someone all startup companies with big dreams and goals needs. And for him, nothing is impossible as long as you have a good plan and team behind it. He has over 18 years’ experience from sales, has invented new products (filed for patent - sponsored by Almi) and has acquired great experience from the retail sector. He also had his own import company and e-commerce business. Jonas is a born leader with solid experience of running successful teams with a quality of bringing out the best in people. His number one passion in life is business. He is a problem solver that always finds a way to get to the goal and has a motto "If it doesn´t go right go left" See less
Marco Real avatar
Marco Real Business controller & investor
Bachelor of Business Administration from ZHAW School Management and Law. Over 5 years Experience in direct sales as a sales agent for the biggest Swiss operating insurance company. Over 3 years experience in market analysis/data acquisition and developing the right market strategy for different companies.
Stefan Bensmo avatar
Stefan Bensmo COO & Board member
Long experience in the e-commerce business, has been at companies like CDON, Tretti.se with roles such as after sales manager, nordic category manager and most recently e-commerce manager at The Swedish Automobile Association. Burning heart for e-commerce and loves everything that has an e- infront of it!
Daniel Thor avatar
Daniel Thor CTO
Over 10 years experience in e-commerce, systems architecture, web development, and information security. Previously held a position as Head of Group IT at one of Scandinavias biggest e-commerce groups - Qliro Group. Can translate demands from non-IT people to advanced yet simple solutions.
Nicklas Ohlsén avatar
Nicklas Ohlsén Board member
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
Eva Flink avatar
Eva Flink Economy
With a part time position at Droshi Eva is in charge of our numbers and books. She is currently studying at Uppsala University to be a math and physical teacher for high school. So she is most likely the smartest in our team with measured IQ of 125.
Martin Sigel avatar
Martin Sigel Board member
Martin was born and raised in Switzerland and started with a commercial apprenticeship, became a certified accountant and controller as well as licensed auditor in Switzerland. He is a financial executive with 30 years of broad experience in all aspects of international finance. Lived and worked in Asia for five ... See more
Martin was born and raised in Switzerland and started with a commercial apprenticeship, became a certified accountant and controller as well as licensed auditor in Switzerland. He is a financial executive with 30 years of broad experience in all aspects of international finance. Lived and worked in Asia for five years, was part of many new business openings and developments in particular in the Logistics industry. He is CFO at one of the biggest logistic companies in the world with over 500 000 employees. And the perfect partner for Droshi with knowledge and contacts needed for our business. See less
Anders Gardebring avatar
Anders Gardebring Developer & consultant
Senior software developer with a specialization towards Microsoft environments. Anders worked with the Microsoft.NET platform since version 1 back in 2002 and I have worked as a system developer since 1997. He gathered a broad experience from many different platforms and development environments in both small and agile software teams ... See more
Senior software developer with a specialization towards Microsoft environments. Anders worked with the Microsoft.NET platform since version 1 back in 2002 and I have worked as a system developer since 1997. He gathered a broad experience from many different platforms and development environments in both small and agile software teams as well as complex multi-layered systems in large organizations. Besides software development, he also has experience with software architecture, continuous integration, automated testing and release management. See less
Sean Percival avatar
Sean Percival Board member
Sean Percival is an American investor and entrepreneur from California. He has invested in over 120 startups and founded several of his own. Previously Sean was a Partner at 500 Startups the Silicon Valley venture fund and globally acclaimed accelerator program. Today he’s an Operating Partner at the Katapult Accelerator, ... See more
Sean Percival is an American investor and entrepreneur from California. He has invested in over 120 startups and founded several of his own. Previously Sean was a Partner at 500 Startups the Silicon Valley venture fund and globally acclaimed accelerator program. Today he’s an Operating Partner at the Katapult Accelerator, an impact-tech accelerator program taking place in Oslo. He is also a guru in online marketing and knows the e-commerce business very well. See less
Denis Lunev avatar
Denis Lunev Developer
Developer with over 3 years of .Net experience. Full-stack knowledgeable in both front- and backend coding, as well as communicating with the business-side. Dreams about how to build the best dropshipping platform in the word.
Vladimir Kuzmenko avatar
Vladimir Kuzmenko Developer
Talented junior developer well on his way being an expert in system integrations. Always keen on learning new things.
Artem Utkin avatar
Artem Utkin Developer
Senior developer with long experience (8+ years) of .Net and working with complex systems. There's not a new topic he can't learn and master in a short time.
avatar
Sergei Kalafe Developer
Wizard when it comes to frontend development and turning ideas into working reality. Code, UX, and design all rolled into one.
Tyson avatar
Tyson Joy manager
Investing in a company also means investing in the team behind it. It has taken us a long time to find this team. We have formed a great team with different skills and mindsets. Company CEO and founder, Jonas, is a great salesman and a real visionary. Marco is young ... See more
Investing in a company also means investing in the team behind it. It has taken us a long time to find this team. We have formed a great team with different skills and mindsets. Company CEO and founder, Jonas, is a great salesman and a real visionary. Marco is young and hungry guy with big goals and dreams. Company CTO, Daniel brings a pragmatic side to the table, is a top notch developer with great interest in programming. All companies need an math genius, ours is Eva. She keeps track of the finances and the numbers. We hand pick our organisation with our COO Stefan through LinkedIn. Anders is continuously headhunted for his skills and a great asset to Droshi. All our employees has a very positive mindset which is a must to be a part of our team. We take personality over skills everyday (but of course everyone has both here). Skills can be taught, but a positive mind is harder to get, and a negative mind will be cancer for us. We also have the privilege to get Sean in who was one of our mentors from the Tinc Program in the US. Martin is one of the best in the world in economy and CFO globally at one of the biggest companies in the world. 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. And sorry to say for the Swedish developers, but there is a reason we chose to have our great team of developers in Ukraine. They are simply awsome! And of course all offices should have a puppy. 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. We choose all in our team with care, and we are building a dream team so we can be the number one in our business. See less

Market

Target Market

Our primary market is e-retailers and suppliers in Europe. As of today there are approximately 800 000 webshops in Europe. The e-commerce market is constantly growing. In 2017, European e-commerce sales were estimated to 602 billion Euros. Of course we want to go global and we are looking into a franchise model for Droshi outside of EU. We are also going to focus more on the bulk orders for the physical shops in the future.

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 is not such a comprehensive platform as ours and we are the only one offering access to the best high-quality European providers. There are however companies within the same niche.
Sweden:
  • Grossist.se (supplier listing)
  • Order.se (purchases and holds stock)
  • Dropship24 (connecting other drop shipping services)
Rest of the world:
  • Bigbuy.eu (holds stock)
  • SaleHoo (supplier listing)
  • Alibaba & Aliexpress
  • Sello.io (integrations marketplaces)
  • Oberlo.com (Aliexpress integration)
  • Commercehub.com (US drop shipping portal)
There are other services/portals, but they are either not active or focus on other target groups. Nobody works the same we do with a B2B marketplace for drop shipping. 

Unique differentiator from competitors

  • We provide a full-service solution for drop shipping and bulk orders. Everything is managed in Droshi.
  • What all our competitors have but collected in one and the same place.  
  • We’ve focused on attracting quality suppliers from Europe. Biggest assortment of European drop shipping suppliers in the world.
  • Rated suppliers
  • Because we don’t carry stock, we’re able to have a substantially larger product range than services that carries stock.
  • We also offer suppliers outside of EU for free.
  • Free drop shipping system with own suppliers 
E-commerce platforms completely integrated with us. Orders will go directly from the webshop to suppliers.

Company revenue streams

Subscription sales and kickback on sold products.

  • 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
  • Sales of data and statistics
  • 3pl partner for best selling products
  • Franchise system outside of EU.
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 and retailers require personal meetings.

Execution

Previous milestones/traction


  • 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. Many new functions and improvements
  • 2017 Q2 - Over 135 000 products in product range.
  • 2017 Q4 - About 800 000 SEK turnover and over 350 000 products, poc sales.
  • 2018 Q3 - Started to build new platform
  • 2018 Q4 - 600 000 products, retailer with over 1 billion SEK turnover. Passed the limit for H2020 program at 13 points.




Next key objectives

  • 2019 Q2 - Successful Fundedbyme campaign, recruitment of UX and digital marketing.
  • 2019 Q3 - Integrations to e-commerce platforms, marketplaces and big retailers. Expansion of sales and marketing globally. Focus on Germany and UK in the EU.
  • 2019 Q4 - 1 million products in catalog, 5 big retailers in Europe approximately 200 new subscriptions sold.
  • 2020 Q1 - Break-even monthly basis
  • 2019 Q2 - Recruitment of neccessary positions and expansion.
  • 2020 - Looking to franschise Droshi outside of Europe. 

Previous Financing

We made a successful private seed financing round in November 2015 where we received 920 000 SEK. A campaign 2017 here at Fundedbyme where we got about: 2.8 million SEK, one 2018 at 4 million SEK, 100 000 SEK 2017 from Vinnova for our Tinc program in Silicon Valley and we also got a contribution in January 2019 from Vinnova at 500 000 SEK so we can move on to phase to with the H2020 program with a chance of 5-50 million sek in EU money.


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, View my box. We have more partnerships on the way...

Use of funds

The raised capital will be used for employees, marketing and further development of our platform. See attached budget for more specific information.

    • 800k-2 million SEK. Keep our current team, 90% employees 10% marketing. 
    • 2-5 million. Priority in order depending on investment: 1 IU/UX designer and digital marketing. Fulltime front-end developer. One salesman. Substantially increased marketing budget. 70% employees 30% marketing. 

Industry Certifications/Awards

We got selected to Tinc's acceleratorprogram in Silicon Valley and have been selected by Inspiralia to apply for the H2020 program where we passed phase 1, got a certificate from the panel of experts of the EU and can now move on to phase 2 with a possibility of getting 500 000-5 million euros in EU money.

Return on Investment

Bought out by bigger owners within 3-5 years or an IPO in 8-10 years to market value. You should see this as a long-term investment. But some of our current investors has already made profitable sales since our last investments, last with the same valuation as this campaign.

The scalability of our platform and business is enormous. Alibaba, for instance, was valued at a dollar value by almost 4,000 times. 59M$ in 2000. Fourteen years later the IPO gave Alibaba a market cap of $231 billion and they are worth around $500 billion today.

.

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 600 000 products from quality suppliers in a short time.
2 – We’ve gotten over 1100 requests from retailers. Approximately 120 paying retailers. Our biggest retailers with over 1 billion SEK in revenue (all with minimum marketing/sales)
3 – We welcome new competition! It will help us grow awareness and stay focused on bringing value to our customers.