Question 1

Are the plans for the company to stay direct to consumer? What percent of revenues come from the 80+ wholesale buyers vs. direct to consumer? How are you going to manage the supply side, identifying and maintaining a portfolio of high quality growers? How many different grower...

Accepted Answer

Hi Joseph, thanks so much for your questions. Here's more information: We plan to have an omnichannel approach rather than only DTC. We have worked hard in the past few years to build our B2B channel and streamline our supply chain which serves as the backbone of the company. The B2B side of business brings in 70% of the revenue currently which puts us in the prime position to scale our DTC channel. The supply side of the business is quite secure due to our family’s strong presence and work i...

Question 2

What about the exit strategy?

Accepted Answer

Hi Alghamdi, Thanks so much for your question. We see multiple possible exit strategies in the long run, however, we’re meticulously focussed on hitting our milestone more at this stage rather than exit strategy. What we know for sure is that, when we hit the milestones, we will have various scenarios for liquidity including but not limited to the following: 1. Acquisition through larger multinational tea companies wanting to add specialty tea vertical to their existing tea portfolio. 2. Acqu...

Question 3

Which blockchain are you using and why did you choose it over others ? How did you arrive at this valuation ? How do you manage weather related incidents for tea plants (insured ??) and how did this play out over the years in Nepal ?

Accepted Answer

Hi Sreekanth, We’re using Agriclear which is powered by Ethereum Virtual Machine (EVM) compatible private blockchain network to store all its transactional data and enhance transparency and accountability among the stakeholders of agro-supply chain. While we had several options to choose the traceability partners, we went with Agriclear because of their expertise in the agricultural sector esp. that of Nepal and the successful test cases they had conducted on sweet orange and eggs. Furthermor...

Question 4

I hoped that the first investors would receive more discount with a lower vlaution cap, so that you could get the largest round

Accepted Answer

Thanks for the advice Alghamdi.

Question 5

What are your net margins? How will you go about distribution of product? What is your go to marketing plan. Do you plan to get into the rtd category and what other category might you want to get into .thinking of investing..looks to be an exceptional product I love tea

Accepted Answer

Hi Timothy, We have a wholesale gross margin of 30% and a retail gross margin of around 75%. We just broke even last year with minimal profit but aim to have net margins of 12-15% in the next 3-5 years. We do not plan to enter the RTD category at this time; it is quite capital-intensive. However, we might get into grocery retail in the next few years to further our distribution. With time, we will strategically enter the spices market in the longer run. I hope that helps. Looking forward to h...

Nepal Tea Collective

Teas from Nepal that transform the 150-year-old tea industry.

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