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GreenJinn

Platform:
Crowdcube
Stage:
Expansion
Industry:
Business Services
Location:
UK - London
Date Rated:
26/09/17
Raise:
£600,000
Equity:
9.84%
Valuation (Pre Money):
£5,497,561
Industry: Business Services
Location: UK - London
Platform: Crowdcube
£600,000 Expansion
Valuation: £6,097,561
Date Rated: 25/09/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

GreenJinn is a couponing app, allowing shoppers to target their shop and reclaim from the comfort of their home by uploading a photo of their receipt. The app has over 6,000 monthly active users reclaiming on their purchases at Sainsbury's and Waitrose. These funds will be used to support the growth of the business with marketing and hiring.

Financial Overview

Date (y/e) Aug-17 Aug-18 Aug-19 Aug-20
Sales Aug-17- Aug-18£107,000 Aug-19£1,630,000 Aug-20£16,000,000
Gross Profit Aug-17- Aug-18£92,000 Aug-19£1,402,000 Aug-20£13,760,000
GP as % sales Aug-17- Aug-1886% Aug-1986% Aug-2086%
Overheads Aug-17£235,000 Aug-18£672,000 Aug-19£3,210,000 Aug-20£12,110,000
Operating Profit Aug-17-£235,000 Aug-18-£580,000 Aug-19-£1,808,000 Aug-20£1,650,000
OP as % sales Aug-17- Aug-18-542% Aug-19-111% Aug-2010%
Closing Cash Aug-17- Aug-18- Aug-19- Aug-20-

Note: This financial information has been sourced from the company on 25/09/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
63%
SKILLS:
EXPERIENCE:
COMMITMENT:
GreenJinn's management team covers all the key roles and the presence of a CFO is good to see at this level of fundraising.
The team are all young and lack significant previous commercial or leadership experience. The advice of the very experienced Mr. de Luca will be very helpful.
The team have already put significant work into bringing GreenJinn this far and appear able to fully commit their efforts to the business.
78%
MARKET:
PRODUCT:
COMPETITION:
The couponing market in the UK is large, and has grown very rapidly in recent years. By allowing users to reclaim post-hoc GreenJinn can significantly reduce the hassle in couponing.
The service has been live for almost a year and receives good reviews. It has only attracted 2 retailers as partners, but these 2 are significant wins.
While not in the pitch itself, supplementary discussions show a detailed understanding of the marketplace. GreenJinn has a novel take on the process, but it's limited reach is a disadvantage.
67%
PROFITABILITY:
CASHFLOW:
RETURNS:
GreenJinn has a sensible business model and has demonstrated good knowledge of their fundamental economics which suggest that the projected exponential growth could well be achievable.
There is insufficient information available to fairly rate this aspect of the business
With very negative EBITDA until year 3 there is a significant risk of further funding rounds that aren't mentioned in the pitch, so it is good that investors will all be on an equal footing.


Conclusion

GreenJinn's team, while inexperienced, have successfully launched and managed their app for the past year, winning agreements with 2 major supermarkets. Even though their growth projections are extremely ambitious, the financial projections indicate that this will be well resourced and so it's hard to fault the plan. It is curious that despite being live, there is no revenue posted from the past year. An explanation of this would be welcome as it may have a bearing on the teams ability to negotiate with retail partners.

The high overheads may be a problem, with the company remaining strongly EBITDA-negative until year 3. Detailed cashflow projections and/or a statement of the current cash position may eliminate this concern, but absent any such statement we must recommend that investors be prepared to follow up this investment in the future. Should a future round come to pass, it is good to see that all investors are of an equal class and will have pre-emption rights.

Related Links

Crowdcube Pitch

www.greenjinn.com

 

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