Problem

You don’t want to wait until the next day for essentials.

In most cities across Europe and the US, people don’t think twice when they need something immediately. They open an app - click three times and what they need shows up in 15 minutes or less. This market has exploded around the world - but not yet, in Canada. Canadians, particularly young, urban consumers are looking for instant gratification. They don’t want to have to plan a day ahead, purchase large minimum basket sizes, suffer receiving substitutions, or pay 25-30% over retail prices.

27549 problem 20230126231618344

Solution

Buggy is the new retail model that delivers essentials in as fast as 15 mins.

We help our customers get the essentials they need, when they need them. We know consumers are fatigued with high markups, service fees, substitutions and having to wait until the next day for what they need now. We buy our inventory at wholesale prices, sell for retail, never substitute, and we deliver it right away.

Investing in Buggy is knowing that this retail logistics model - which has exploded across Europe (Getir) and the US (GoPuff) is needed in Canada. It is also admitting that brands want tech-enabled solutions to reach the young, tech forward, urban consumer. Buggy is the only dedicated rapid delivery & logistics retail business in Canada. With an experienced team, 32,500 existing customers, and strong strategic partnerships with the world’s largest CPG companies, we’re raising capital to expand our “Buggy Stores” (micro warehouses) across Canada.

In addition to the core business, we will grow value for investors by building a data platform to drive insights and growth for CPG brands, direct-to-consumer sampling offerings and offer a white-labeled rapid fulfillment solution for DTC brands.

27549 solution 20230126231630817

Product

Buggy allows you to shop for essentials, stocked in the closest micro warehouse in real-time and have it delivered to you immediately.

To use Buggy, customers will need to create an account and enter their delivery address and payment information. Shoppers can then browse and select from a huge selection of necessities from the “Buggy Stores” for 25%-30% cheaper than 3rd party delivery apps- with no substitutions and delivered as fast as 15 minutes!

27549 product 20230126231648350

How it Works

Rapid delivery retail logistics in just four steps

Customers place an order on the Buggy app or website, or through a third party marketplace (UberEats, DoorDash or SkipTheDishes), choose items from a live inventory feed to the closest micro warehouse, order, then receive their order as fast as 15 minutes!

27549 how it works 20230126231655460

Customers

Early traction in the Buggy Stores demonstrates that customers are addicted to the service.

Buggy launched in Toronto and London, Ontario in October 2022. There have been 6000+ new app downloads since launch. Further, our growth through strategic distribution partnerships with UberEats, SkipTheDishes and DoorDash have led to 1000%+ increases in sales month over month. Our retention rate from the Buggy stores is also 50%+. We are actively working with the world’s top consumer brands. In addition to strong growth in the number of orders, Buggy has noticed a trend of increasing average basket sizes over time. While a customer may begin their relationship with Buggy by ordering ice cream or chips, by the second or third order they may begin ordering household supplies, fresh grocery items, cold & flu products and more, giving Buggy a unique ability to grow both by adding new customers and by serving more needs from existing customers over time.

27549 customers 20230126231701898

Business Model

Buggy is Focused on Growth

Buggy will open additional stores depending on the amount raised, with a target gross margin of 33%. We aim to be profitable within each store within 18 months. The overall company cash flow positive timing is targeted to be in 2026.

Buggy makes money through a variety of revenue drivers. Goods are procured at wholesale prices and then sold to consumers at retail prices. Buggy charges a delivery fee for orders under $30, encouraging consumers to increase their basket sizes. In addition to core retail revenues, Buggy has a number of high margin, ancillary revenue drivers: “Buggy For Brands” and “Fulfilled by Buggy”. Buggy For Brands monetizes CPG partnerships through the sale of data and promotional tactics, generating high margin revenues. Fulfilled by Buggy monetizes DTC e-commerce sellers by fulfilling on their behalf, getting paid per order in addition to monthly storage fees. Buggy’s approach to this model is one heavily focused on maximizing profits through positive unit economics.

27549 future goals 20230126231720618

Market

A Booming Global Market

The rapid delivery market is booming globally, with companies reaching 10s of millions of consumers, earning billions in revenue with high valuations.
Buggy’s model is unique in a number of important ways. Firstly high retention rates of approx 52% help Buggy grow customer relationships over time. In addition, by partnering with leading marketplaces such as UberEats, Buggy further keeps its customer acquisition costs low.

Lastly Buggy is tapping into the exceptionally fast-growing consumer data and white-label logistics markets. By leveraging existing fixed assets Buggy is able to offer brands unique consumers insights and power white-labeled rapid delivery logistics. Both of which help increase Buggy’s operating leverage by fully utilizing our fixed assets.

27549 market 20230126231728996

Competition

A Unique Player in the Canadian Market

We have an experienced team, existing customers, and established partners (such as Uber), we leverage CPG relationships, white labeled delivery, and significant data that drive profits and long term business IP value. With existing top SEO results for many grocery and essential items, we appeal to their demographic of Canadian Universities students, and support their demands.

27549 whatsapp image 2023 03 01 at 1 30 25 pm 20230301213019634

Use of Funds

Buggy aims to raise $5M in funding by Q2 2023.

This funding will come from Buggy’s existing network of investor relationships in addition to funds raised from FrontFundr, and other funding channels that may be available to Buggy. Buggy is targeting at least $250k through FundFundr and the rest through external sources.

27549 use of funds 20230126231803109

Industry Comparables & Exit Strategy

Driving Future Shareholder Value

Buggy is currently valued attractively compared with other companies in the industry.

Given Buggy’s strong and continued growth, management expects there to be a number of liquidation options for shareholders in future. Buggy management sees a future acquisition as highly possible given the presence of large global players in this market outside of Canada who may be interested in buying an existing Canadian company as a way of entering the Canadian market.

Buggy also knows that retail investors tend to like investing in consumer oriented companies and sees going public as a viable strategy for creating future exit liquidity for investors or as a method for raising additional capital. Given a lack of similar publicly traded companies on the market Buggy sees significant valuation potential in undergoing a public listing in the future.

Not quite ready to invest? Join our mailing list to learn more and stay up to date at investinbuggy.ca.

Thank You!

* Offerings on the platform contain forward-looking information. Forward-looking information includes statements that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements, and involve known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the issuer to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

** Details of the offering can be found in the offering documents. This communication is for informational purposes only. Investing in crowdfunding and exempt market offerings has significant risk. Investors may not be able to resell quickly or at all. An exempt market security holder may also receive limited ongoing issuer information. You should invest only if you are prepared not to receive any return on your investment and/or lose your investment in its entirety. FFS will provide advice on the suitability of your investments made through its platform

*** Testimonials may not be representative of the experience of other customers or investors. Testimonials are no guarantee of future performance or success.