Veeqo

Idea

Introduction

All-in-one platform for retailers to save time. Use shipping integrations to process orders instantly and automatically sync inventory across all sales channels. Increase sales by listing products on major marketplaces in a few clicks.

Integrated with all major UK and US shipping companies such Royal Mail, DPD, DHL, UPS, Collect+, Interlink, UK Mail, USPS, FedEx and DX.

Integrated with key ecommerce and marketplaces such as eBay, Amazon, Shopify, WooCommerce and Magento.

Convertible Key Terms

They key terms that apply to the Veeqo convertible are as follows:

► Discount – conversion at a 20% discount to the valuation set by a Trigger Event.

► This convertible does not have a valuation cap.

► Conversion is triggered by ("Trigger Events"):

◆ An Equity Fundraise – defined as the Company raising investment capital of at least £1 million from one transaction or a series of transactions, in exchange for the issue of Ordinary Shares. The Seedrs fund raise does not count as a transaction;

◆ A Change of Control of the company (transfer of more than 50% of the share capital); or

◆An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.

If conversion has not been triggered by the longstop date (12 months from the date of the convertible) shares will be issued on the longstop date at a valuation based on the lower of (i) a pre-money company valuation of £3,266,220 (being the post money valuation of the company's last fundraising round); or (ii) the price for any share issued after the date of the convertible agreement. The convertible would also convert to equity at this price in the event of winding up or liquidation of the company.

At conversion, the investment agreement governing an Equity Fundraise (in particular) shall contain the standard Seedrs investor protections including pre-emption rights, tag & drag rights and information rights.

Intended impact

Whilst we think managing orders in each of their sales channels systems is very hard for a retailer, we aim to bring all their orders into Veeqo to manage.

We would make managing these orders much easier with shipping integrations to print shipping labels automatically, so no copy and pasting addresses anymore, with tracking numbers updating the original sales channel. Advanced order workflow management, grouping orders by status/warehouse/sales channel and more.

We think syncing inventory across all those sales channels is even harder and often ends in over sellings. Veeqo would manage this for you, syncing your inventory in real time to all your sales channels.

The system would manage cost of inventory very carefully, thus allowing business to see their true margin by product/group and, most usefully, by sales channel.

Substantial accomplishments to date

Over 250 paying customers since launch

270% MRR Revenue Growth over last 12 months.

Launched major new features in last 3 months including stock taking and pick/pack features.

Average monthly selling price has increased from £41 in July 2015 to £176 in June 2016 - 330% increase.

Hired "JC" as our CRO, he worked for world's leading cloud point of sale company Vend for 4 years and helped them grow from 40 customers to 15,000. He also helped them raise over $40m from top VC's and the company is now valued at over $200m.

Acquired shipping startup ParcelBright.com for cash deal, which then gave our customer shipping integrations with DPD, DHL, Interlink, Collect+ and DX. Plus it now gives us the option to offer customer cheaper shipping rates, where we make a margin.

Monetisation strategy

SaaS with a monthly fee for customers depending on their size, starting from £70 to £999. See our pricing model here: http://www.veeqo.com/pricing_plans

In August we will be re-launching the ParcelBright service with the aim to start making revenue on shipments.

Use of proceeds

The vast majority will go into scaling the marketing and sales operation, to increase our growth.

This will be focussed on the UK, where we are very confident of our metrics and now need to invest more into marketing to create more leads.

We will also be investing into marketing in Germany, where we have had a lot of traction without any marketing to date.