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6 Days left

The game-changing coffee platform

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anonymous 2 days ago

Slurp team,

Congratulations on a fantastic growth journey so far. Please find some questions on my end below:

  1. Can you please elaborate on who the consumers of your service are (i.e. "buyer persona" )? I'm interested in understanding whether you predominantly sell to "coffee connoisseurs" or to a broader audience. From a marketing perspective, is it easy to target potential customers or do they consist of a broad range of characteristics (i.e age, geography, values, etc.)?

  2. From a branding perspective, how do you differentiate yourself from your competitors (e.g. Trade Coffee)?

  3. Your investor material highlights countries (Sweden, Poland, France) where there has been a planned expansion during 2021. Can you please provide a status update on where you stand with the geographical expansion for these countries? Any partnerships/SLAs with local roasteries in place?

  4. What is the % split b/w ground versus whole bean sales to your customers?

Marlinb 6 days ago

Hi,

Thanks for presenting the opportunity and giving room for questions. I find the pitch very interesting but have a few questions that I would appreciate your answer on;

Competition: if I google on coffee subscription services, I find dozens per country in the EU, how do you plan to succesfully compete against local players given the apparently low barriers to entry in this market?

Market size: coffee is obviously a huge market but subscriptions seems a niche inside it to me. Do you know what size your largest competitors are, e.g. in more mature markets such as the US, to give an idea of what % of the coffee drinking population is willing to consider a subscription?

Other verticals: if you expand to other verticals, will those also follow a subscription model?

Investors: can you provide us with the amount Innovestor is contributing this round? Why are they less active in promotion compared to the last raise in 2018?

Last round: since your last round of EUR 1m in 2018 you've grown x2 eventhough COVID-19 seems to have been a tailwind for businesses like yourself. Can you provide us with the valuation of the last round, explain what proceeds were used for and why this round will deliver much higher growth?

I realize these are not the smallest or easiest questions but I do think its important to all of us here to have a good overview of your business. Thank you and have a nice day

anonymous
Oy Slurp Ab
4 days ago

Competition: Slurp's technology removes the friction for both buyers and suppliers in specialty categories where subjective taste and domain knowledge together would play an important role in decision making. To be clear, Slurp removes the need for the individual to know anything about the actual domain (coffee, tea, etc.), the shopper only needs to answer a few preliminary taste questions (and if they so desire, provide feedback on each mystery box), and Slurp’s platform will select the product that is most likely to match the individual's preference. This is not a simple process. Instead, the system learns the specific user’s unique profile over time, and combines that with preferences by other similar users, to provide the optimal choice. This would not be possible for generic platforms like Amazon or other simple webshops, which either caters to a wide range of different products or lacks any smart technology on either the buyer or supplier side. Just like a critical mass of reviews helped Amazon change how shoppers browse and make buying decisions (consumption 2.0), Slurp enables customers to receive the product they are most likely to prefer, without any subject knowledge, taking shoppers to the next stage of consumption (consumption 3.0). On the supplier side there is deep logistics, making it a no-brainer for them to join. Again, to emphasize, Slurp is not a simple webshop. It has built deep and unique technology that automatically provides buyers with tastes they are likely to enjoy from around the world, removing the complexity of choosing on the buyer side and the logistics on the supplier side. The platform is completely different from the countless webshops out there.

Regarding the market, personalized mystery box subscriptions make it easier for buyers who regularly drink coffee (most) to explore a world of different flavors they are likely to love. This is significantly easier than having to go in each week / month to browse tens / hundreds of brands, look at a few reviews by people who likely have nothing in common with you, make a choice, and order. Personalized subscriptions with mystery boxes makes life more convenient. On the company side, subscriptions are sticky revenue streams with strong visibility, providing that hockey stick growth often seen in successful SaaS companies (every new customer adds additional revenue on the ongoing exciting subscription revenues). Slurp will expand its selection one by one to specialty products like confectionery, snacks, tea, wine, etc., where machine learning models can be trained within each specific domain. Coffee is only the beginning. The key differentiator is our personalization features allowing businesses and customers to easily find products based on their preferences. We will continue to offer both a subscription service and the optionality to buy one off. It is the subscription model, and the underlying technology, that makes this such a differentiated and exciting proposition.

Other verticals: Slurp will expand its selection one by one to specialty products like confectionery, snacks, tea, wine, etc., where machine learning models can be trained within each specific domain. Coffee is only the beginning. The key differentiator is our personalization features allowing businesses and customers to easily find products based on their preferences. We will continue to offer both a subscription service and the optionality to buy one off. It is the subscription model, and the underlying technology, that makes this such a differentiated and exciting proposition.

Investors: Innovestor is contributing €100k, which is their maximum possible contribution. This is a simple mandate barrier for them. We have also other existing investors participating in this round, they are deeply excited about Slurp's future. PS: Innovestor and Invesdor are not related.

Last round: The previously raised €1m (€5.5m pre-money) was spent mostly on the development of version 2 of our platform, including the basis for smart technology making personalized choices for customers, as well as automated logistics for suppliers. This massive endeavour required significant resources and has given us a strong competitive edge and created high barriers to entry. We also opened 3 new markets including Japan, Germany and the UK where we focused on setting up marketing funnels and optimized unit economics to enable sustainable scaling when increasing the marketing budget.

Our average monthly Total Revenue growth over the last 12 months is 5.2% (B2C), equalling about 84% per annum. Slurp's B2B revenues saw strong growth pre-covid, fell during Covid, and is now growing again. We expect this trend to continue, fuelled further by our optimized B2B offering, which now also includes those working from home. The second factor that will result in increased growth, and perhaps the most impactful change, is that we are increasing our marketing budget from almost negligible numbers in 2021 (€88,000), to ~€500,000 in 2022. Our marketing channels have been tried and tested countless times over the years, meaning that we know where to spend money to get an optimal effect. The risk of mis-spending is low. Lastly, as we grow to new suppliers and buyers, the substantial network effects applicable to Slurp keeps propelling organic growth forward (we have already seen this effect over the last few years, and the larger the company gets the more exponential the effect gets).

cptpicard 11 days ago

How well does your technology platform generalize to other kinds of specialty products? What is your edge versus e-commerce behemoths like Amazon, who might just decide to start selling coffee straight from producers as well?

anonymous
Oy Slurp Ab
6 days ago

Today our technology platform removes the friction for both buyers and suppliers in specialty categories where subjective taste and domain knowledge together would play an important role in decision making. Slurp removes the need for the individual to know anything about the actual domain (coffee, tea, etc.), the shopper only needs to answer a few preliminary taste questions (and if they so desire, provide feedback on each mystery box), and Slurp’s platform will select the product that is most likely to match the individual's preference. To be clear, this is not a simple process. Instead, the system is developed to learn the specific user’s unique profile over time, and combines that with preferences by other similar users, to provide the optimal choice. This would not be possible for generic platforms like Amazon, which caters to a wide range of different products. Slurp will expand its selection one by one to specialty products like tea, confectionery, snacks, chocolate, etc., where machine learning models can be trained within each specific domain. Coffee is only the beginning. The key differentiator is our personalization features allowing businesses and customers to easily find products based on their preferences from an extensive international product selection.

anonymous 13 days ago

Great idea. Can you also show us the financials for the past couple years as well as estimates in the future?

anonymous
Oy Slurp Ab
13 days ago

Thank you. Regarding the financials for the past couple of years and estimates in the future, please refer to the Financials and Current state of business and plans section in the materials (at the bottom of the page).

Andyland 14 days ago

Worldwide coffee prices are at all time highs due to supply chain issues etc. How does this effect your current model and future projections, say it keeps going up and up.

anonymous
Oy Slurp Ab
13 days ago

We believe that the appetite for specialty coffee will withstand higher coffee prices, and thus not impact demand to a great extent.

That being said, it is important to highlight that Slurp makes coffee from around the globe not only more accessible but often also cheaper for the buyer.

We are able to provide coffee at the same or a lower price point than the market, by leveraging our unique logistics service (lower shipping costs due to scale, etc.). With respect to our margins, this competitive advantage allows us to increase the price of the coffee to match market prices when deemed necessary, and vice versa, while still preserving healthy margins.

Kim B. 15 days ago

I noticed that Kahiwa Coffee Roasters, which is listed in Slurp, have 0 products offered via Slurp but at the same time they sell their coffee with the same model in their own webshop? Any idea why they don't offer their coffee (anymore?) via Slurp?

anonymous
Oy Slurp Ab
13 days ago

Slurp has various channels via which coffee and tea is sold to consumers and businesses. This includes recurring subscriptions where coffee is automatically selected based on taste, as well as direct sales via Slurp’s online store (like a regular webshop) and direct B2B sales.

A majority of Slurp’s sales are done via the subscription model. In fact, sticky recurring subscriptions accounted for ~65% of all revenues over the last 3 years (~60% in 2021).

Slurp is still selling Kahiwa’s coffee via the subscription model, as well as directly to B2B customers.

Most suppliers on Slurp sell their coffee directly on Slurps webshop in addition to being sold via Slurp’s subscriptions. The former are one-off sales, as opposed to the recurring nature of the subscriptions.

There is no specific reason related to economics that suppliers would not want to sell directly on Slurp’s webshop in addition to the subscriptions. The cost of acquiring customers is much lower on Slurp than on their own webshop, due to Slurp’s large domestic and international customer base and the fact that Slurp handles all logistics.

In some cases however, suppliers have reached their max production capacity or have other temporary productional limitations, during which they might take one or more products out of Slurp’s direct store and only sell via Slurp’s subscriptions and B2B services (in addition to their own direct sales through their own website and physical store).

That is most likely what happened with Kahiwa, which is still sold via Slurp’s subscriptions as well as directly by Slurp to B2B customers.

MGH 16 days ago

Hi Slurp Team, congratulations on achieving market entry in Japan, this is a major challenge for Finnish companies! I was wondering what proportion of sales you are expecting from the Japanese market in the future and if there are plans to capitalize on your relationship with Japanese roasters further? The opportunity for consumers in Europe to buy from boutique Japanese Roasteries (and other international locations such as craft US roasters) is quite an attractive service (if branded correctly) that would help further differentiate you from your competitors.

anonymous
Oy Slurp Ab
13 days ago

You hit the nail on the head, it is deeply attractive for international buyers to be able to access local blends from exciting regions like Japan. As you point out, this is one of the core benefits to Slurp. We are definitely taking advantage of the strong relationships we have with the roasters both in Japan and in other regions. The network effects here are significant (suppliers onboarding their buyers and spreading the word to other suppliers, and vice versa). When it comes to the percentage of total global sales, Japanese revenues accounted for ~2% in 2021. This will grow to ~5% in 2022, with Japanese revenues reaching ~€200,000. We estimate Japanese revenues to more than triple in 2023, to ~620,000. At this point, Japan will account for ~7% of global sales. The progressive trend is a result of the rapidly growing inbound interest from suppliers and buyers, driven by the above mentioned network effects and capital efficient local marketing efforts. We have, and will continue to, capitalize on our first mover advantage.

MGH 13 days ago

Thanks so much for your answer - this sounds excellent. I believe you have are absolutely on the right track and as you mentioned the first mover advantage here is significant. Looking forward to seeing things develop! - Michael

anonymous
Oy Slurp Ab
13 days ago

My pleasure, Michael. :) - Manuel

anonymous 16 days ago

Your past revenue growth has been around 50% year. Now you estimate that your future revenue growth will be over 100% year. What are you doing differently compared to previous years?

anonymous
Oy Slurp Ab
13 days ago

Our average monthly Total Revenue growth over the last 12 months is 5.2% (B2C), equalling about 84% per annum. B2B has been taken out due to the large impact of Covid on offices. This is the first thing that will change. Our B2B had strong growth pre-covid, fell during Covid, and is now growing again. We expect this trend to continue, fuelled further by our optimized B2B offering, which now also includes those working from home. The second, and perhaps most impactful change, is that we are increasing our marketing budget from almost negligible numbers in 2021 (€88,000), to ~€500,000 in 2022. This equals a monthly marketing budget of around 10-20k per market. Our marketing channels have been tried and tested countless times over the years, meaning that we know where to spend money to get an optimal effect. The risk of mis-spending is low. Lastly, as we grow to new suppliers and buyers, the substantial network effects applicable to Slurp keeps propelling organic growth forward (we have already seen this effect over the last few years, and the larger the company gets the more exponential the effect gets).

anonymous 12 days ago

It seems your two customer group - B2C and B2B may be cannibalized each other. If more people return to their office, more people consume coffee at work instead of home office. Do you have any strategy to avoid this scenario except increasing marketing budget? And could you compare growth rate in B2B and B2C before and after Pandemic?

MaDo71 17 days ago

Hi Slurp-team, interesting pitch. I missed your business plan / some financials figures for the next 3-5 years. I would appreciate if you could add these information to your deck. Thanks - Markus

anonymous
Oy Slurp Ab
13 days ago

For detailed numbers related to 2022-2023 please refer to the Financials section in the deck. For the business plan please refer to Use of Funds, Financials and Recent developments and future prospects. After reaching €10m in 2023, we estimate Slurp’s continued growth to be ~100% per annum. As such, the company would reach a unicorn status (~€100m in revenues) in 2026 / 2027. At that point, the value of the company will be over €1 billion. EBITDA break-even happens in 2022, after which point the company could potentially grow also without further external capital.

anonymous 17 days ago

What is the share of export revenues at the moment?

anonymous
Oy Slurp Ab
13 days ago

The share of revenues from markets outside of Finland is ~5 to 6% for 2021 (products sold from Finland to other markets account for sales in Finland). As we push further with international expansion, we expect non-Finnish markets to constitute ~20% of total revenues by the end of 2023.