Moot corp may_08_2010_fin_al
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THE UNIVERSITY OF TEXAS AT AUSTIN Global Moot Corp Competition MSTC MEXICO McCombs School of Business May 8th, 2010 Recargatel!
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Transcript of Moot corp may_08_2010_fin_al
THE UNIVERSITY OF TEXAS AT AUSTIN
Global Moot Corp CompetitionMSTC MEXICO
McCombs School of BusinessMay 8th, 2010
Recargatel!
The Pain
• Mobile business in Mexico has market size of 80M and a growth rate of 15%.
In Mexico current locations to buy air time are not near and the amounts are not affordable for:
56M mobile users!!!!
Our Solution: Recargatel!!!
Buy Prepaid air Time
Public phone calls
Text Messages
Contents
Remote management system
Wireless Pay Phone Vending Machine
Business Landscape
End User•No bank account.•Income: Less than $100 USD a week.•No landline or computer.•Strong Communications needs.
Pop & Mom Store •No bank account or credit card.•Cash Economy.•No computer to sale prepaid air time for mobile phones.•Family Business (1,000,000 in Mexico).
Value Chain WiPhone (Hardware)
Pop & Mom Store
Activities/Role
Order a $510 USDWiphone
Mobile CarrierMargin: $146 USD
Activities/Role
Order Wiphone To Recargatel(Pays $364 USD)
Wiphone 18 monthsFinancing: $32.9 USD
Recargatel!Margin: $84 USD
Activities/Role
Deliver the Wiphoneto the Mobile Carrier(Full Cost: $280 USD)
Value Chain Prepaid air time
End Customer
Needs
Buy a $1 USD prepaid time
Convinent location
Pop & Mom StoreMargin: 4%
Activities/Role
Prepaid InventoryTake care of Wiphone
RecargatelMargin: 5%
Activities/Role
Time Air Distribution(Mobile Aggregator)WiPhone support
Mobile CarrierMargin: 91%
Activities/Role
Wireless NetworkAvilable
Marketing Plan
Focus in niches and differentiation
Operations in 4 cities:
Monterrey Mexico City Guadalajara Leon
40 Million Mobile Phone
Mexican Market: $8b USD
45%
31%
14%
10%
Diestel
Recargas Noreste
Paga Todo
Others
Market Share Breakdown
Business Model: Acid Test
• Good News: We have a market trial of
1,000 units in Monterrey, Mexico.
• The key conclusion are:– Good Pop&Mom Store acceptance because brings
additional customers to the store.
– Average monthly revenue of $800 USD per store.
Pilot Test Revenues
1° of Jan.
2° of Jan.
3° of Jan.
4° of Jan.
1° of Feb.
2° of Feb.
3° of Feb.
4° of Feb.
1° of Mar.
2° of Mar.
3° of Mar.
4° of Mar.
1° of Apr.
2° of Apr.
3° of Apr.
4° of Apr.
$100,000
$140,000
$180,000
$220,000
$260,000
$300,000
Growth: 30 %Eastern Holiday
• Revenue: $13M MX pesos approximately a recurrent business of $1M USD a month
Recargatel: Weekly Revenue
Industry Leaders Opinion
• “This is a really attractive technology that is innovative and necessary”
Mateo Mendoza, General Manager of Public Telephony from Telefonica Movistar
• “I’m interested in the WiPhone … So, we can start with a beta test of 500 units and then see how it works”
Daniel Hajj Abounrrad CEO America Movil(Carlos Slim Company)
2010, 1QR&C
Agreement Exclusivity
2010, 2QGet Grants Beta Test
2010, 2QPO from Telcel
100,000
2010, 3QVC Funds
2012 JuneBreakeven
Time line
PO
CEO: Rafael Tejeda
CFO: Luis Torrreblanca
CTO: Melissa Guerrero
VPM: Antonio Gerling
VPLO: Johanna Olmos
BD: Fernando Huerta
IP: Martha Laura
Management team
Financials: Revenues
Carriers $670M
Pop&Mom $33M
Recargatel $37M
Top up (Prepaid air time)Revenues by 2014
$740M(Stores)
Business Opportunity
• Revenues of 51,441,511 USD on 2014
• Payback: 20 months
• NPV of $13,757,560 USD
• IRR: 84.7%
• Company Value on 2014: $74,282,050 USD
• An Investment of $1.4M USD by 37.5% Preferred Stocks
The Deal: What we Offer!!!
$ 1.4 MUSD
Equity: 37.5%
Funds used for:a) Manufacturing WiPhones. b) Logistics Infrastructure and Headcount
Exit Strategy:
c) Selling the company to Mobile Carrier or Banking.
d) IPO.
Recargatel!
Disruptive Opportunity: Focused to a market of 56M mobile users in Mexico but the need is worldwide.
Proven Business Model & Technology: Because now recargatel has a 1,000 units in Monterrey Mexico applying Coca-Cola business model.
Team: More than 10 Years of Entrepreneurial & Telecom experience in Mexico.
Summary: Please Remember!!!!!
Cash Machine for main stakeholders: $740M USD
THE UNIVERSITY OF TEXAS AT AUSTIN
Global Moot Corp CompetitionMSTC MEXICO
McCombs School of BusinessMay 5th, 2010
Recargatel!
