Children 2-7 years old have access to gadgets, which contribute to the development of digital infantilism. Most educational content requires parental involvement, but this is not always possible in modern families. Coobic.ai is an electronic tutor, easy to use and does not require the help of adults, and thanks to educational games it allows the child to learn new skills in mathematics, English, etc.
The first 20 sales in less than a week and getting the first round of investment in 2 weeks. For December 2019-sold out, they bought more than 300 Coobic and continue to buy.
We got 35 Indian potential partners, each of them want to buy 500-2000 kits. And then we got the order on 1200 Coobic from Russian distributor.
Market: $13 Bln is our serviceable market, we plan to earn $1Bln+ in 5 years.
Our validated customers: pre-schools, big distributors, parents. Channels: partners in Indian schools, manufacture-partners, Instagram (b2c). We have 35 pre-schools with pre-order on 500-2000 from one, distributor: order on 1000, parents: 400+
Our customers are Indian pre-schools who want to increase the quality of education and become more modern; Russian distributors who sell child items and toys in popular stores, and b2c clients who want to be more modern and develop their kids. Not our customers are government schools, 'cause now they're not so interested in the improvement of education; Russian distributors who work with unpopular stores and ask for big % for sales; b2c clients who prefer their own way for education.
Problem or Opportunity
2-7 years old children get access to tablets and smartphones, which leads to the development of digital infantilism. Parents are “giving up” and “buying” time for themselves by handing their kid smartphone or tablet.
Solution (product or service)
The child receives the educational tasks audibly, without a screen, only sound cube and interactive cards which allows not to instill an early dependence on smartphones and get new skills. Coobic is voiced by a professional British announcer.
There are in India we found out only paper, poorly-made manuals. In other countries, we found own courses of training centers with their mobile applications, interactive methodological materials, including a talking pen from Xiaomi. Such activities have a very high price, they are common on the rich coast. Board games and gamified online tutorials, it's developing skills from simple counting to understanding algorithms, but there's required time of parents. We are not trying to replace mom or grandpa, we only occupy the baby when the parents don't have the resource for it.
Advantages or differentiators
The cube is steeper because it doesn't require training in the rules of the game and instantly activates the child in the game. In addition, we design games so that you can play together and independently. For parents who pay for preschool education, the main thing is that the cube is voiced by a professional British announcer. Perfect pronunciation, no accent. Even adults can practice pronunciation to be like a carrier. If the parents do not know English, they are happy that the child is doing homework in English with a cube without their help. We are not trying to replace mom or grandpa. We only occupy the baby when the parents do not have the resource for this.
Revenue has our startup generated since inception: $30000
Current financial year revenue: $13000
Current monthly burn rate: $5000
Cost structure: 20% commission of partners, 20% cost price
The cost of attracting a user is $0,23
Average margin from attracted to the site - $0,29
This, together with unsuccessful experiments and without taking into account unattributed purchases.
Instagram traffic conversion - 1.31%
The average number of repeat purchases in a 3-month cohort is 1.5.
In November, we started selling with a new subscription model in b2c. It turned out like this:
Nov - $ 680
Dec - $ 4 773
Jan - $ 2 906 (since January we stopped all campaigns in the Russian Federation and concentrated on India and China)
Feb - $ 613 (at the time of February 14)
Now we have 35 pre-orders from Indian pre-schools on 500-2000 from each, the minimum we get 1000 orders from them=$170 000
And we have 1 order from Russian distributor for $67 000
For pre-schools sales through partners: it's an annual subscription on courses (counting, reading, English): $200 for 1 kit
Money will be spent on
We're raising investments for the production of Coobic and scaling up in India
Offer for investor
Looking for $250K (for 10% equity) to reach revenue: $10M