Baloy

KL, Malaysia
Pledged :
12.85%
Raised :
9.33%
  • Dividend Payout

    15%**

  • Maximum Goal

    RM10,000,000.00

  • Minimum Goal

    RM6,000,000.00

  • Maximum Equity offered

    6.57%

  • Minimum Equity offered

    4.05%

  • Raised

    RM560,015.00

  • Time Remaining

    69 day(s) to go

Minimum amount is RM5000 Maximum amount is RM10000000
Edit Investment Amount:
RM

* Minimum Investment is RM5000.

Baloy targets to give 15% dividend per annum to investors on their investment amount should the company hits its projected milestones.

About the campaign creator

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Akramul Hasan
KL, Malaysia
6 Campaigns | 0 Loved campaigns

Contact Info

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SPEAKER

Project Pitch

In conversation with Mr. Azhar Othman, the owner of ‘G Environment Energy Solutions (Malaysia)’.

Join the live pitch session for this project

Join us for a conversation on this e-commerce investment opportunity with the team from Baloy and ETHIS

  • 6th August, Friday
  • 8:00 P.M. MYT (GMT+8)
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Yen Chee Yung
Co-founder & CEO
Baloy
Wan_Dazriq_21-removebg-preview
Wan Dazriq
CEO
ETHIS Malaysia
16
Saiful Amin
Investment Manager
ETHIS Malaysia
2
Khairul Hafiz
Head of Investment
ETHIS Malaysia
  • Unique Business Model: Baloy is an Online to Offline (O2O) platform that provides Fast Moving Consumer Goods (FMCG) to consumers through a unique Consumer to Manufacturer (C2M) model. By practising O2O and C2M concepts, Baloy effectively differentiates itself in the local convenience mart/groceries/hypermarket space by offering FMCG goods at prices approximately 3-10% lower than its competitors. The C2M model addresses issues of inventory and supply chain efficiency, especially with brick-and-mortar businesses experiencing production and sales channels disruption because of the COVID-19 crisis.
  • High-Growth Market: In China, the C2M model is a new driver in their e-commerce landscape. In 2019, $420 million worth of C2M-related bookings and sales were made in a single day during China’s Double Twelve shopping day. Home shopping expert ParcelHero forecasts C2M online shopping to be worth £4.33 billion globally by 2022.
  • Proven Track Record: Operating since 2019, Baloy has been able to generate profits in both 2019 and 2020 despite the COVID pandemic. To date, it has established over 43 outlets in Malaysia, with a sizable membership of 15,000 members, and is still growing across the country with plans to establish new stores in each region of West Malaysia. In 2020, Baloy recorded 500,000 walk-in customers and visits on average, and launched a new licensing program for investors to become a Member Mart licensee. The company is currently in talks with the Cooperative Commission of Malaysia (SKM) to leverage non-performing retail Co-Ops to fuel the Company’s growth.
  • Comprehensive Revenue Model : Their revenue model is not completely dependent on a low-cost leadership strategy. The company also earns income from membership fees, outlet licensing fees and can effectively tap on different customer segments including HoReCa (referring to Hotels, Restaurants and Cafes). According to IHS Markit's valuation, Baloy’s total revenue is projected to grow at a compound annual growth rate (CAGR) of 88% from RM78 million in 2021 to RM983 million in 2025.
  • The Team : A dedicated and experienced management team with in-depth experience in the FMCG and distribution sectors. Directors Cheng Choi Wai and Lim Chee Seng have been dealing with prominent retail brands such as AEON, Tesco, Giant, MyNews, and Family Mart, bringing strong networking connections for Baloy, as well as a good understanding of important related activities, dealings, and procedures in the FMCG industry. The team plans to expand aggressively across Malaysia and to build up a new ecosystem for FMCG retailers while disrupting the local supply chain market.
  • Dividend Plan : The Baloy management is committed to providing a target dividend payout of up to 15% annually to shareholders post-ECF raise, provided that they reach their annual milestones.
  • Exit Strategy : Baloy is targeting a redemption / buyback within 36 to 60 months post-ECF fundraise, at a target price that matches the issuance price, while also planning an IPO exercise on the Catalyst Stock Exchange Singapore within the same period. Backed by unique business models and strong financial backing (support from VCs, PEs, and institutional investors), Baloy is confident to scale the business fast with a clear roadmap and a promising vision.

Baloy operates an FMCG platform with an O2O (online to offline) business model together with its physical stores known as Member Marts. It runs two business segments: the wholesale trading arm (B2B) and the e-commerce marketplace (B2C).

Its wholesale trading arm (B2B) has an existing base of 200 merchants comprising FMCG wholesalers and distributors for bulk purchases directly from manufacturers, as part of its unique Consumer to Manufacturer (C2M) model.

For B2C, Baloy has introduced an innovative membership scheme, allowing members to enjoy tremendous savings. The company also operates its own credit service developed by Managepay Systems Berhad, a listed company in Malaysia.

Baloy aims to build a healthy buying ecosystem by boosting and uplifting the ASEAN FMCG industry and, subsequently, the country’s economy.

Online to offline or commonly abbreviated as O2O, is a business strategy created to bring online customers to brick and mortar locations, all while creating a seamless digital experience for the user throughout the process. The Consumer to Manufacturer model (C2M) connects end-producers and end-consumers to produce tailored products at lower prices.

Services Offered
  • Online platform for grocery purchases
  • Groceries collection at Baloy’s authorized pick-up points and Member Marts
  • Delivery service within a 5km radius from Baloy outlets
  • An offline platform for grocery purchases
  • Cash & eWallet payment accessibilities

The conventional FMCG supply chain model has resulted in higher prices of goods and products once it reaches the end consumers. Baloy’s new ecosystem would be able to solve this issue, while benefiting all layers of the supply chain including manufacturers, wholesalers, retailers and consumers.

Baloy has also identified other challenges to the current conventional supply chain market in Malaysia, which include cost inefficiency, lack of innovative approach, insufficient cash flow, stock purchase costly due to intermediation, and a high startup threshold, among others.

The Solution: BALOY

By practising O2O and C2M concepts, Baloy solves some of these common challenges, offering consumers essential products in the most convenient way and at the lowest cost.

Among the solutions offered include cash terms, cost efficiency, disintermediation, the lowest pricing assurance, logistic & delivery capacity and the lowest threshold for business startup.

Baloy effectively differentiates itself in the local convenience mart/groceries/hypermarket space by offering FMCG goods at prices approximately 3-10% lower than its competitors.

In addition, their revenue streams are not completely dependent on low-cost leadership strategy alone, as they also earn revenue from membership fees, outlet licensing fees and can tap on different customer segments including the HoReCa segment effectively.

Baloy also offers Baloy Credit for its members; which is based on a Buy Now Pay Later (BNPL) model. BNPL services enable consumers to purchase goods and services by paying part of the purchase price at the time of the transaction while the remainder is to be paid to the BNPL provider in a series of instalments.

Strong financial performance

Operating since 2019, Baloy has been able to generate profits in both 2019 and 2020 in spite of operating during the COVID pandemic.

2019 – audited revenue was RM42.6 Million and EBITDA was RM298K.
2020 – non-audited revenue was 36.4 Million and EBITDA was RM1.15 Million.

Baloy’s growth
Snapshots of Baloy’s projected financial performance

Baloy’s future projects

Using Big Data and AI, the company hopes to develop more integrated technology to supplement its business in the future.

Through Big Data, the company wants to produce a more accurate representation of data to understand market trends in real-time; with predictive analysis providing merchants with sufficient information to formulate and execute marketing strategies with greater accuracy and effectiveness.

Baloy’s operations will focus on the integration of both online and offline needs for their customers. With the help of AI, the company can track a user’s buying patterns and preferences to intuitively predict a customer’s favorite or preferred items based on their shopping and search history, with the use of Face Recognition System. This enhances their shopping experience and saves them browsing and search time.

To date, Baloy has established over 43 outlets in Malaysia, with a sizable membership of 15,000 members, and is still growing across the country with plans to establish new stores in each region of West Malaysia.

Baloy recorded 500,000 walk-in customers and visits on average and launched a new licensing program for investors to become a Member Mart licensee in 2020.

The company is currently in talks with the Cooperative Commission of Malaysia (SKM) to leverage on non-performing retail Co-Ops to fuel the company’s growth.

Home shopping expert ParcelHero forecasts C2M online shopping to be worth £4.33bn globally by 2022. In China, shopping app Pinduoduo, a retailer operating with the C2M model, had 788.4 million users and more than $9 billion in annual revenue by the end of 2020. But beyond just the C2M, the e-commerce industry is also forecasted to grow. The global e-commerce market size was valued at US$ 9.09 trillion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027.
Data compiled by Statista and eMarketer (2018)

Dan Lim

Co-Founder / Director of Sales

Dan has 8 years of experience as a business consultant, planner and marketing strategist in the FMCG retail sector. He is the founder of Dade Sdn. Bhd. & Benri Sdn. Bhd. Has extensive experience in FMCG retail business / operation setup and strategy.

Inez Cheng

Co-Founder / Director of Marketing

Inez has 6 years of marketing experience in advertising and franchise, and 5 years of experience in business operations, admin, finance & HR in the FMCG retail business. Has been Director of various companies since 2015.

Yen Chee Yung

Co-Founder / Chief Executive Officer

Yen has 3 years of experience as a senior engineer in the MNC electronics sector. He also has 7 years of experience in franchise operations in Malaysia and Singapore operations, as well as 10 years of experience in FMCG retail business operations.
Baloy is an Online to Offline (O2O) platform which provides Fast Moving Consumer Goods (FMCG) to consumers through a unique Consumer to Manufacturer (C2M) model. By practising O2O and C2M concepts, Baloy manages to offer consumers essential products conveniently and at the lowest cost.
Baloy aims to establish a healthy online ecosystem by reforming ASEAN’s norms and principles in regards to the consumption of daily essential grocery goods. We aim to expand our business to the whole of ASEAN and benefit the people of ASEAN for their daily purchasing needs, making it hassle-free, affordable and maintaining its quality.
The conventional FMCG supply chain model has resulted in higher prices of goods and products once it reaches the end consumers. Baloy’s new ecosystem would be able to solve this issue, while benefiting all layers of the supply chain including manufacturers, wholesalers, retailers and consumers.
Baloy’s unique business model allows it to not only depend on the product margin as the company profit; there are 4 other major revenue streams which include income generated from product sales, licensing, member fees to premium charges. These revenue streams allow Baloy to provide essential products at the lowest price point in the market.
Baloy’s unique system combines both the Online to Offline sales figure in real-time and auto-generating purchase order (PO) to its manufacturers for weekly replenishment; this process allows the management of online and physical stores and inventories to be done seamlessly and efficiently.

The capital raised will be used to mainly expand the business by setting up more outlets as part of Baloy’s East Coast Peninsular Malaysia expansion. It will also be used to acquire a new warehouse in the East Coast to support the supplies in the region, as well as for aggressive marketing on mass media and social media by giving out free vouchers, free delivery, etc.

The conventional FMCG supply chain model has resulted in higher prices of goods and products once it reaches the end consumers. Baloy’s new ecosystem would be able to solve this issue, while benefiting all layers of the supply chain including manufacturers, wholesalers, retailers and consumers.

The Baloy team has been in this industry for more than 5 years. In addition, each member of its management team has extensive professional experience. The company’s outstanding financial performance in the last 2 years also further solidifies its belief that the company has a capable and strong team to navigate and solve the supply chain problem in this market.
The 36 months redemption period offered by Baloy and the IPO planning on Catalyst Stock Exchange Singapore are the preferred optimal liquidity solutions for investors.

Baloy has issued a declaration letter on listing halal products now and in the future. View the declaration letter here.

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Risk Statement

The campaign duration is projected by the project owners, and based on information we receive from them. The actual completion of projects is subject to real world conditions, which may cause an extension of duration by 2 to 12 months. Any extensions will be informed to investors in projects updates. In the event of project or business failure in property projects in particular, a recovery process may be initiated to recover some or all of the capital invested.