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Pytag

We make grain trading simple

Ukraine, Kyiv city
Market: Logistics and warehouses, Farming, Trade, Blockchain
Stage of the project: Prototype or product is ready

Date of last change: 02.10.2019
Min investment
$  50.000
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Total required
$ 470.000
Rating
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Idea

Pytag is a a trading analytical digital platform for grain trading that uses proprietary algorithms to process all available digital data about grain trading market to find objectively best offers for both sellers and buyers, and will include additional services that are necessary for this business, such as logistics, quality test, storage, predictive analytics, and payment services.

Current Status

We already have a platform with our main free service - search for an optimal offer based on product, quantity, and location. Currently, our platform has about 1000 users. Till the end of the year we plan to implement additional paid services (transactions, logistics, storage, and quality tests) and start our monetization.

Market

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.

Competitors

Indigo
Farmlead
AgroTender
Mercaris

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

Finance

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

Business model

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

IT development:
Platform (to release features and develop additional modules), Mobile App, Servers and Infrastructure

Marketing:
Online marketing (SMM, Opinion Leaders, Copyrighting)
Offline marketing (Meetings with costumers, exhibitions, campaigns)

Offer for investor

We will discuss it during the meeting

Team or Management

Risks

Lack of investements in next 3 years

Incubation/Acceleration programs accomplishment

EO Business Incubator (by USAID)

Invention/Patent

Сopyright registration №72381

Website address

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address