Moonalabs

Idea

Introduction

We are a London-based venture designing and manufacturing modular work pods for homes and offices. We own the full product lifecycle, manufacturing at our exclusive family factory in India and selling directly to the end customer in the UK.

We benefit from the availability of high-skilled labour and premium materials such as teak at low costs, and the ability to scale quickly and efficiently to meet demand. Our customers benefit from high-quality products at highly competitive prices, offering exceptional value for money.

The pandemic has led to a dramatic increase in the demand for garden rooms for work and exercise. However, we believe the industry is lacking in design innovation, quality of materials, timely supply and sustainability. It remains a commoditised market with low entry barriers due to wide availability of low-quality, mass-produced materials. At the same time, traditional office environments are fast adapting to offer spaces for personal work and for collaboration.

Substantial accomplishments to date

Traction: Developed proprietary modular tech for manufacturing garden rooms and office pods

o Sold 45 units and generated revenue of £536,520 ex VAT**

o 60% gross margin (rising to 70% on larger units)

o Strong customer feedback (Trustpilot rating – ‘Great’)

*based on unaudited management accounts.

** Our revenue comes from the sale of garden rooms and office pods to customers in the UK. We primarily sell Direct to Consumer. ROI on advertising has consistently yielded 10x+ in revenues (45 units or £536,520 in revenue* from approximately £40k in advertising spend).

Full control over supply: Vertically integrated manufacturing, rapid, cost-effective scalability. Excellent availability of skilled labour, hardwoods, premises and machinery at low costs

Cashflow: Advance client payments covering COGS, working capital positive

Sustainability: Sustainably sourced wood; empowering workers in rural India

Strong timing and positioning: Tailored for a post-COVID world. Well-positioned to disrupt competition.

TIMELINE:

Pilot (Apr21 – Mar22): Developed, launched pilot designs. Installed 21 units during this period.

Redevelopment (Apr – Jul22): Redeveloped products and processes to enable seamless and scalable client order fulfilment.

o Invested in high-output machines (panel saws, planers etc)

o Implemented comprehensive ERP system for production

o Reorganised factory management and labour

o Reconfigured and rationalised supply chain

o Currently recruiting experienced sales, installations and marketing personnel

o Developed new website and a range of new marketing collateral

Full launch (Aug22):

o Wide-ranging B2C marketing program to be implemented in September 22

o We aim to secure a showroom space and display products to be in place in Oct-22

Monetisation strategy

Our revenue comes from the sale of garden rooms and office pods to customers in the UK. We primarily sell Direct to Consumer. ROI on advertising has consistently yielded 10x+ in revenues (34 units or £240k in revenue* from £20k in advertising spend).

*based on unaudited management accounts.

Building on the experience to date, we developed a sales and marketing plan to both leverage and establish solid, repeatable revenue channels:

B2C

o Digital marketing focusing on Garden Gyms, Garden Offices and Office Pods

o We aim to include fitness instructor influencers as part of our marketing

o Promote content focused on woodworking and craftsmanship

o Marketing “kit of parts” to demonstrate quality and value for customer

PLANNED PARTNERSHIPS & B2B2C

o Partnerships with garden centres, architects, landscapers and distributors

o Within office pods, we will forge partnerships with distributors, Design and Build companies and architects

o We expect to open a showroom in Dec-22 for our display products, which could potentially offer additional sales.

Use of proceeds

We will continue to offer premium garden rooms and office pods at an affordable price, with the aim of leading in the modular workspace industry with beautiful designs, superior quality and sustainability.

To achieve this we will use the proceeds from this raise in the following manner:

Marketing (40%) – We expect to spend 40% of our raise proceeds on advertising and other sales and marketing expenses. This includes the cost of setting up a new showroom space for our display products

New hires (25%) – Hire a full-time CMO and an Installations Operator

Infrastructure (10%) – Invest in our timber treatment and seasoning facility, invest in a paint booth and purchase an additional panel saw

Inventory (10%) – Stock up on components that are relatively more time-consuming to produce, such as French doors and garden room furniture

Contingency (15%) – We will hold a small portion of the raise for any future contingencies.