Vgreen - vertical smart garden based on hydroponics. For fast traction - launch on the Ukrainian test market. And after - fast scaling on GCC (Gulf region countries) market.
Current Status
MVP is ready and tested. Industrial design is done. All mechanical R&D is finished and the 3D model is ready. Need to finish electrical R&D and print a pre-serial prototype. With technical documentation we will be ready to start manufacturing in Ukraine. Next step - writing software for the "Vgreen.online" model with multi-sensors and monitoring on the mobile phone application.
Market
Vgreen is a scalable business with a short time to launch on international markets. Our target market is GCC (Gulf Region). The first milestone is Dubai. The second is Abu Dhabi and Qatar. Third step – all remaining Gulf countries. As for the client type segmentation we are focusing on B2B in the segment of corporate offices. The market size is 710 MUSD and an annual growth rate of 15%. The most important reason to focus on the GCC is a basic feature of hydroponic – it uses 10 times less water than regular soil-based plants growing. Water is an expensive resource in the Middle East, maybe more expensive than oil. The GCC market has nearly zero competition. Vgreen is the first mover in the B2B segment.
Problem or Opportunity
Mostly all offices are decorated with plants. Leading researchers prove the positive impact of plants in the office for productivity, health, and well-being. Common and global problem - plants die. Businesses need to pay a fee to plant service companies.
Solution (product or service)
What is more important than greens for B2B clients? Profit! With Vgreen customer has both – cost-cutting and green office. On the one hand customer is increasing revenues through high employee efficiency. On the other hand cutting costs on green office because 5 Vgreens are 10 times cheaper than bills from plant service companies.
Competitors
Herbert, GoForO2, Ogarden
Advantages or differentiators
Vgreen - 14 plants, hydroponics, light unit included, watering automatization, 7 kg, 210 Euro. Herbert - 15 plants, hydroponics, light unit included, watering automatization, 12 kg., 540 Euro. GoForO2 - 6 plants, soil, no light unit, no watering automatization, 5 kg., 230 Euro. Ogarden - 80 plants, soil, light unit included, watering automatization, 41 kg. floor mounted, 904 Euro.
Finance
The revenue model is the “Gillette” or the "Razor&Blades" model when the main revenues come from seed cartridge sales. Vgreen has recurring revenues built into the product. The one Vgreen is designed for 14 cartridges. So average 48 cartridges for 1 Vgreen per year. The “Cartridge” business is perfect for recurring revenues by subscription.
Business model
The revenue model is the “Gillette” or the "Razor&Blades" business model. For the go-to-market strategy fastest option is cooperation with a local distributor. It can be a company with similar activity – for example, Plantscapes by Desert Group (https://plantscapes.ae/). The local distributor can support a high level of customer service. The main market activity is communication and partnership with local interior designers, architects, and florists. As a starting point, participation in exhibitions gives partners and customers. The main metric is EBITDA. Year 1 - 0,26 MUSD Year 2 + 0,01 MUSD Year 2 + 0,48 MUSD Year 3 + 1,73 MUSD
Money will be spent on
30K$ - finish electrical R&D and print a pre-serial prototype, technical documentation. 300K$ - scaling on target GCC market.
