Bicycle comparison and exchange platform. We can instantly value your bike & parts!
- Evesham, United Kingdom
Categories: SaaS/PaaS Digital B2B
Flatout has two core elements to its business.
1. Our platform, a bicycle comparison site allows consumers to find their next bicycle from our third party dealers at the best price anywhere in the UK.
2. We can instantly value bicycles allowing consumers to sell & part exchange online. In addition they can part exchange in third party partner cycle stores allowing them to have their bike instantly valued and walk out with their new bike all in one clean and easy transaction.
We believe, Flatout has identified a clear gap in the market facilitating a cycle comparison site whilst empowering customers to part exchange their old bike either online or in store.
By partnering with cycle stores and online cycle retailers across the UK, we believe Flatout is on track to become the next big name in the cycle industry.
Our opportunity is huge! Global bike & parts sales are estimated to be worth $80b by 2026, growing from $55bn in 2017. The UK, Germany & France are within the top 10 GDP's worldwide. Bike sales in the EU trio are worth over 50% of bicycle & parts sales in Europe, accounting for 53%. We will target France & Germany once we hit UK store saturation.
Substantial accomplishments to date
• 10 out of the 11 stores we targeted to be in our pilot signed letters of intent.
• We have a 20,000+ subscriber base.
• Flatout has bought and sold a vast amount of used bike parts under its previous trading name Flatoutcycles.
• We paused trading for the past 12 months to develop our new platform allowing us to pivot for substantial growth.
• Our new platform can instantly value your bike and secure your best deal on your next bike.
• We have visited another bicycle part exchange provider in California, this has validated the scale and speed in which we can grow.
• We have agreed terms on acquiring a niche bicycle logistics company, allowing us to operate and send bikes across the UK under this brand.
• We have agreed terms for a £30,000 loan which has recently been deposited in the companies account.
• Fully automated valuation system for bikes is ready.
• Fully automated valuation system for parts will be ready in 2019.
• EU wide carriage agreed with largest courier operator in Europe for both bikes and parts. This allows consumers to exchange on our site today, and have your exchange at your doorstep as soon as the next day!
Acquisition of CycleSent
Flatout has agreed to acquire CycleSent. CycleSent represents a huge logistics opportunity within the sports industry moving bicycles, and sports equipment. Already moving bicycles since April 2016, CycleSent increased turnover from £49,840 in FY1, to £87,982 in FY2. We believe we have the ability to increase sales dramatically once we have completed our automated website development before increasing turnover dramatically by shipping a variety of sporting goods and luggage. In addition, the business will hugely benefit from moving shipments via Flatout's platform, building on the 4,518 contacts that the business already has and growing a national B2B shipment service for our partner stores. In addition, the business will manufacture and sell packaging solutions to move high-end sports equipment quickly & safely, under an extension of the Flatout brand once CycleSent is rebranded.
Please see the document attached to this campaign for a fuller explanation regarding the acquisition of CycleSent.
Once the website is live, there will be three clear revenue streams.
1. Part exchanges are resold which bolsters turnover, and supports profit as a byproduct of our software that is integrated in partner bicycle stores.
2. Third party stores pay a monthly subscription which gives them lead generation for new bike sales, dealer access to our platform to manage those leads, as well as access to the instant bicycle & parts valuation software which in turn increase their sales.
In addition to the above we will have growing revenue lines that are there as support functions for third party stores, such as monthly deals allowing them to turn old redundant stock and promotional marketing campaigns via Flatout's email shots and Facebook campaigns.
3. We aim to launch and run our first Exchange store in 2019. This pilot will enable us to launch more stores across the UK, as well as franchising the stores on the back of its success.
Use of proceeds
As the company grows the amount of bicycle stores that are using Flatout's software for lead generation and part exchanges will hopefully grow exponentially, in turn creating a requirement for working capital to turn the used stock.
If we raise an additional £62,000 we will commence opening our pilot franchise store towards the end of 2019. Heads of terms have been agreed for the store, which will double up as our office location.
Full use of proceeds can be reviewed in our financial forecast.
Please note the business has an HSBC overdraft of £10,000 and an HSBC loan capital of £20,000 which was taken in July 2018. There are 68
payments left to make, with an outstanding balance of £26,190.20. Funds received as part of the round will not be used to repay these debts.
Please note, the business will be applying for EIS relief. Due to complications, an application cannot be submitted until after the round.
If investing £500+, you will receive an extra 10% on any bike valuation in store. For example, if your bike is valued at £2,000, you will receive £2,200.
As a shareholder now and moving forwards, if you refer your local bike shop to us, and they become a partner store you will receive £200!