Startup in car maintenance raising capital

Posted On: 14 / Aug / 2021
0 695

Deal Details

Annual

Deal Type

Equity (Fundraise)
Maximum Loan

Industry

Transportation
Charge

Deal Status

Active

Deal Description

The company is legally established, licensed and registered in Costa Rica and focused in car maintenance. In Costa Rica maintaining the car is expensive and it is true that there is an important fringe of car owners that do not have that extra money when it is time to change tires, battery, repair alternator, starter, rebuild engine, transmission, etc. The company's program is called Car Maintenance Plan, similar to AAA in which the car owner affiliates to it, and the person pays a small amount weekly and can be accumulated with certain number of payments. The business plan assumes revenues of $4m in the first year: The the weekly membership fee vary from $ 8 to $ 28. According to Nacional Deed Office, there are more than 1,600,000 private vehicles. Disregarding 600,000 since these are owned by wealthy persons who do not need this kind of assistance as well as the bottom cars (cheap cars) and owners that are not able to afford paying for this plan, there are approx 1,000,000 vehicles on the streets. The business plan accounts for 50 salespersons on the streets daily and each one must sell; 4 plans average a day. There is no plan like this in the country so far and haven´t been in the past. Together with this salesforce, the plan incorporates a telemarketing department with 15 people on the phone. The company has service agreements with several known car repair shops, as well as the necessary government licenses. The company is poised to ramp up and seeks financing for advertising, leasing offices, hiring personnel, office and sales equipment etc. The company is looking for a financial investor taking into account: Minimum investment amount: $ 250k-$ 300k Term: one year, renewable, there is an option of paying back 25% of principal at 6 months term, another 25% at 9 months term and the balance at year end. Yield: 18% on a annual basis, paid out monthly. Insurance policy issued by Government Insurance Agency on behalf of the investor.

No Files Attached

Deal Value
31.96 Crore
Targeted Region
Americas

Revenue

2019-20
7.99 Crore
2020-21
7.99 Crore
2021-22
7.99 Crore