Key Points:
- Investment: £80,000
- Investor: Touker Suleyman
- Equity Offered: 30% (initially 10%)
- Business: Shocal, a lifestyle super app for independent businesses
- Target Audience: Local independent retailers and consumers
- Challenges: Market saturation, competitive pressures, and high operational costs
The Pitch
Max and Ashley introduced Shocal as a comprehensive platform designed to enhance the digital presence and reach of local independent businesses. They highlighted its multifaceted capabilities including shopping delivery, order management, e-ticketing, and customer service, all catered towards promoting local commerce.
Financials and Offer
Starting with a bold ask of £80,000 for 10% equity, they detailed Shocal's promising financials: 22,000 users, £2 million in sales, and £200,000 in gross profit since launching in late 2019. Their business operates with an 18% commission model, significantly lower than larger competitors, making it an attractive proposition for local vendors.
Challenges Highlighted by the Dragons
The Dragons were concerned about the scalability and intense competition in the tech market. They highlighted the difficulties in achieving national success without significant additional funding and questioned the sustainability of Shocal's commission structure as the business scales. Despite these hurdles, the unique value proposition of supporting local businesses was well-received.
Conclusion
Despite skepticism from some dragons about the scalability and future funding requirements of Shocal, Max and Ashley's commitment and clear business model convinced Tuka Suleiman to invest. Their success story in the den illustrates the potential for innovative platforms that support local economies, even in a crowded market. The journey of Shocal is just beginning, and with this new investment, they aim to significantly expand their impact on the high streets of Manchester and Liverpool.