uGift Pitch Deck

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This is the pitch deck for angel round of funding for uGift.com.ua, the plug-and-play gift certificate solution for small and mid-sized businesses in Ukraine.

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www.ugift.com.ua www.angel.co/ugift

The Most Convenient Gifting Solution in Ukraine

Problem = Poor gifting solutions in Ukraine

Requires merchants to make a design, print many cards, purchase special software

Typically only sold inside the merchants own store (ie. attracts only current customers)

Gift Cards by Payment Systems

Not available in Russia/Ukraine due to legislation (not expected to change soon)

In-Store Gift Cards by Retailers

Online Gift Cards by Retailers

Mainly only promoted on companys own website

Often not visibly appealing as a gift

www.ugift.com.ua

Online Gift Card Specialists

Only promoted online

Little / no personalization

Not promoted by partner

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Our Solution = Maximum flexibility where you buy

On uGift Website

On Partners Website using uGift API

At our Partners Shops(just grab a card from stand and pay)

At Retail Partners(sell universal certificates for 3 denominations)

Our website has the simplest, best user experience of any gift certificate site on the Ukrainian market. See for yourself!

Our Solution = Maximum flexibility where you use (over 70 partners signed in Kiev)

Restaurants

Salons

Sports Clubs / Dance Studios

Snow boarding lessons

Cooking Classes

Photo sessions

Bowling

Retail Stores

E-stores

Karting

Aqua Park

Our Solution = Maximum flexibility in how to deliver

Physical Card Delivered by Courier

Email

Facebook Wall

SMS

How our product works?

www.ugift.com.ua

Customer sees ad for uGift on Google or sees our stand in his favorite restaurant or salon

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Customer visits site and selects what merchant he wants to buy a gift for and amount to give

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Customer makes personalized greeting card and uploads optional photo(s)

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Customer choose delivery method and pays

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Delivery

Email

SMS

Receiver gets uGift and uses at the store

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Merchant checks security code to authenticate and accepts the uGift

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How we get customers

Online Advertising / SEO

Weekly Friends Birthday Reminders

Visibility in Retailers & at our Partners Outlets

Active Social Network Strategy

In top 1-2 pages of search results on all key search terms relating to gift certificates

A4 sized stand sits near cash register in 30+ partners and 4 retail partners

150 Likes on FB, 300+ on vKontakt and many more on Google+

The main competition is from online gift specialists

Online Gift Certificate Sites(Bodo.com.ua, Originaloff.com.ua)

Their strategy: Focus on selling online and target mainly fun activities (eg. skydiving).Their Strength: High search results, recognized online branduGifts Advantages: 1) No service fee2) Ability to add greeting cards3) Much more options (especially restaurants, beauty)4) Better design/user experience5) Ability to buy in partners store or site6) Ability to buy in retail outlets

R

www.ugift.com.ua

Their strategy: Provide a choice of several different gift options and allow receiver to choose one. Sell in retail and online.Their Strength: Good retail presence, recognized branduGifts Advantages: 1) No service fee2) Ability to add greeting cards3) Instant delivery by SMS & email4) Ability to choose any of uGifts 60+ partners5) Ability to buy in partners store or site

In-Store Certificates(Smile)

Right now there is no competition in retail it is a land grab!!

Our Business Model generates strong gross profit!

www.ugift.com.ua

Payment to a merchant

Cost of a new customer

$4

$21

Average value of a card

Gross profit

$5

$25

Revenue per customer

$9(35% margin)

More than 50 partners signed at margin of 30-40%*Daily Deal sites take 75%+ uGift is an easy sell!

Target conversion is 2% on combination of CPC/search engine results (current = 0.5%, reducing through user experience improvement)Target cost of 1 visitor = $0.10 (current = $0.15, reducing thru SEO strategy)Therefore new customer will cost ~$5 (or $0 if they find us in-store)

Voucher for 200uah

(65%)

16% of card value

Economics of Typical Transaction

*Standard margin is 40% but just 30% for those merchants that offer to place a uGift stand that we provide them at the cash register.

Validation of our model

www.ugift.com.ua

We are already selling about 5 -10 certificates per week or about $1000 of gross sales is forecasted for August

This is with very little marketing budget and we are just launching our vastly improved new site

We have invested in SEO and it is starting to show its results uGift is in top 2 pages of search results on most popular search terms

Retailers are eager to sell our certificates and are willing to do so for a margin of just 11%. We already have 4 retailers signed and are talking to numerous others.

Our partners are willing to sell our certificates in their own stores and still give us 30% commission (about 40 of our 70 signed partners have agreed to this so far)

Our Team is one of the most experienced startup teams in Kiev

COO - Andrey JivolovichFormerly head of strategic projects at Groupon UAPreviously was an equity trader at Phoenix Capital

Team

Board

CTO Mark MaguraFormerly CTO of VertigoGraduated National Aviation University with specialty in programming

Ken LeaverCEO of Groupon Ukraine, the leading daily deal site in the country7+ years of strategy consulting experience (incl. BCG) + 3yrs at Visa Inc.

Hrish LotlikarManaging Partner, EastlabsAs working as a VC at Spencer Trask Ventures, invested in Innocentive, Cybersettle, LocalMatters.com, others

Daniel TonkopiyCo-founder and CEO of Best.ua, one of the leading review portals in Ukraine

Alexey OrapCo-founder and CEO of YouScan15+ years experience in Internet and telecom (Yandex, Alcatel-Lucent)

www.ugift.com.ua

Mentors

Head of Sales Andrey Tirel2 years at DSS Global Trading where Andrey rose from Junior Specialist to Head of Dept.

Dmitry HavrylenkoManaging Partner of Investment Banking, Pheonix CapitalManaging Partner at Concorde Capital

The Ask and Funding Uses

www.ugift.com.ua

Looking to raise $80,000 of which we already have $40,000 as a soft commitment

This will be used for: -$20,000 for marketing (SEO, Pay-per-Click) -$30,000 expansion of partner network & expansion of retail sales in Kiev -$30,000 expansion into 5 regional cities

Milestones that we will reach:1) Break-even by February 2013 (no further funding will be needed before achieving break-even)2) $20,000 of monthly sales by end of year