Pytag is a trading analytical digital platform for trading that uses our proprietary algorithms to collect and process all available digital data about trading markets to find objectively best offers for both sellers and buyers, and includes necessary services, such as logistics, quality test, predictive analytics, and payment services.
Our platform makes market transparent and trading – simple, as Pytag connects all participants of the market in the most optimal way, saving their time and money.
We already have an online prototype with our main free service - search for an optimal offer based on the type of the product, quantity, and location. Currently, our platform has about 1000 users. This year we won Ukrainian Startup Fund pre-seed grant and our president, Volodymyr Zelensky, personally awarded us the 21st of February. Till the end of May we plan to develop our MVP for grain trading market and implement additional paid services (transactions, logistics, storage, and quality tests) and receive our first revenue.
Our costumer is a grain processing company that is buying grain for their production, or an export trader that is exporting the grain.
And see our main user as a farmer, who is approx. 55 years old, he has about 500 hectars of fields and is looking how to sell his goods for a higher price.
Intermediaries charge on average 10% from transaction for their services.
Intermediaries commission fees from global grain trading are approximately $90 B, and commission fees from Ukrainian market are approximately $2 B.
Problem or Opportunity
The problem is absence of market transperency and trust in grain trading process, and large amount of intermidearies who charge high fees for their services. Therefore, farmers have troubles finding trusted partner and it takes up to 15 hours a week to negotiate on price and they loose up to 30% of their potential revenue, as because of untrasparent market it is difficult to find end-buyer and they have no choice but to have business with intermediaries who charge high fees. As a result, farmers loose much of potential profit, and it is difficult to find a trusted farmer and they have to deal with intermediaries as well. In addition to that, it is difficult to predict a price and decide what will be the best time to sell or buy goods.
Whole this system is unreliable and inefficient, everyone wants to have easy, safe, and efficient deals, but currently it is not possible.
Solution (product or service)
Pytag will process all available data about the market and will find objectively best offers for both buyers and sellers, and will include additional services from service providers that are necessary for grain trading, such as Transactions (secure payment for goods), Delivery (Pytag will help to find trucks from trusted partners to deliver goods), Quality Test (laboratories of our trusted partners will provide their services to ensure that goods are acceptable quality and match the contract terms), and Predictive Analytics that will help farmers to know what grain should they grow and when should they sell it, and will help buyers to find the best time to buy goods they need, to ensure that all deals will be simple, safe, and efficient.
Buyers choose the services they wish to get with their trade, Pytag analizes offers from different service providers and finds the most optimal prices for those services. Then Buyers set the price for the grain, and Farmers recieve all the offers from different Buyers and choose the highest one.
We have a stable market and many competing platforms. For the most part, these platforms implement logistics and payment solutions, but none of them provide an overall picture of offers from around the world, and therefore cannot find the best deals.
Our main competitors are CME, Indigo, Mercaris, AgroTender, Farmlead.
They have been on the market for a while. Most competitors are monetized by the commission.
Advantages or differentiators
1. Our unique algorythms.
2. Unified trading system that includes all key participants of the market that provide necessary services for grain trading market.
3. Collection, analysis, and optimisation of information about the market to find the most optimal prices for goods and services
Our main services are:
Transactions (secure payment for goods) - 0.5% commission from a deal
Delivery (Pytag will help to find trucks from trusted partners to deliver goods) - 4% commision from costs of delivery
Quality Test (laboratories of our trusted partners will provide their services to ensure that goods are acceptable quality and match the contract terms) - 5% commission from cost of service
Warehouse services (storage and additional services) - 5% commission from costs of service
Advanced Analytics (predictive analytics that will help farmers to know what grain should they grow and when should they sell it, and will help buyers to find the best time to buy goods they need) - $29 per month
The business model of Pytag based on the fact that we provide the search for the most optimal offer for buyers and sellers for free, and monetization comes with related services, such as Transactions, Delivery, Quality Test, and Advanced Analytics.
Due to our model, we can easily add new methods of monetization, but the main income we see in commission from Transactions
Money will be spent on
Platform (to release features and develop additional modules), Mobile App, Servers and Infrastructure