Crowdfunding - Glenn's Grocer

Glenn’s Grocer

FMCG

KL, Malaysia

Pledged :

213.16%

Raised :

200.00%

Targeted Profit Distribution
20%
Maximum Goal
RM500,000
Minimum Goal
RM250,000
Maximum Equity offered
9% or 117,181 shares
Minimum Equity offered
5% or 58,591 shares
Raised
RM500,000.00
Time Remaining
0 day(s) to go

SHARIAH ENDORSEMENT

بسم الله الرحمن الرحيم

1.0 Background

1.1 Glenn’s Grocer (“Issuer”), is a company that provides a one-stop convenient grocer offering products and fresh produce primarily targeting segments in urban areas.
1.2 Ethis Ventures Sdn Bhd (“Company”) operates an equity crowdfunding platform licensed by the Securities Commission of Malaysia, through the domain https://ethis.co/my.
1.3 The Issuer agreed to raise equity funding through the equity crowdfunding platform operated by the Company.
1.4 Mufti Yousuf Sultan (“Shariah Adviser”) has reviewed the following documents received from the Issuer in order to complete the shariah review on the fundraising campaign.
a. Pitch Deck
b. Latest Management Accounts
c. Submitted shariah checklist form
d. Signed Declaration from the Issuer
1.5 The Shariah Adviser has conducted both business activity screening and financial screening on the Issuer, as per the rulings by the Shariah Advisory Council of the Securities Commission of Malaysia. ReadMore

SPEAKER

Project Pitch

In conversation with Mr. Selvarajah Ramasamy, the Founder & CEO of Octowill

Octowill: Live Pitch

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

Saiful Amin Hassan

Investment Manager
ETHIS Malaysia

Khairul Hafiz

Head of Investment
ETHIS Malaysia

Selvarajah Ramasamy

Founder & CEO
Octowill

High Growth Market

The global fast-moving consumer goods (FMCG) market could potentially grow to a staggering US$15.4 billion in 2025, an increase from its previous valuation of US$10 billion in 2017, with a compound annual growth rate of 5.4% from 2018 to 2025, according to a report published by Allied Market Research.

According to leading data, insight and consulting company Kantar, the FMCG spend in the APAC region was up 5% in the first quarter, which is higher than the increase of 3.4% in the first quarter of 2020.

The food sector is leading the FMCG market, achieving an appetising growth of 5.2%, compared to 3.4% in the same period last year. This is attributed to more cooking and eating occasions at home across almost all markets during COVID-19.

Data from Euromonitor International shows that the value of Malaysian grocery retailers was estimated at RM71.08 billion in 2020 and is projected to jump 30% to RM91.79 billion in 2025. It is expected to expand to RM74.74 billion this year.

Grocery stores have proven to be remarkably resilient, acting as a recession-proof investment during the pandemic.

The Team

The team is highly experienced with extensive networks in the retail and fresh produce and grocery industry.

CEO M. Faiz Zakaria has 15 years of experience in the retail industry. He is most notably known for the co-founding and brand building of a local fashion design company/retailer in KL. He always had a stint at Valiram Group Sdn Bhd.

Cristina Suzanne Stockstill, the Co-founder and head of marketing & brand ambassador is an award-winning actress with a wide range of connections.

Edmund Soon co-founded and successfully set up a restaurant chain with 22 outlets. He has been active in the supply and distribution of fresh produce since 2001.

The Chief Merchandising Officer Brian Kiat is the founder of interior design consultancy and trading, Jin Huat Global for 5 years.

Track Record & Traction

Despite only operating since 2019, Glenn’s Grocer has been able to generate profits in 2020 despite the COVID pandemic. To date, it has established two physical stores and is planning to establish another. Their revenue in 2020 is RM2.02 million and they made a net profit of RM100K.

Last year, Glenn’s Grocer was able to successfully bring in 100,000 walk-in customers and have grown to 1,100 active members.

Unique Offerings

Glenn’s Grocer offers competitive product prices that are similar to supermarkets but with an average of +190% more SKUs compared to typical neighbourhood grocery stores within a 5km radius of the area.

Glenn’s Grocer is expected to further lower their product prices with a possible reduction in costs once they secure more direct supply from farmers and the implementation of its GTPP program with the funds from this ECF campaign. Their average recommended retail price (RRP) is currently at an average of -35.17% below competitors.

Comprehensive Revenue Model

Glenn’s Grocer depends on both its core and ancillary revenue streams.

Core revenue
B2C – Provide delivery for both online and offline purchases at wholesale prices.
B2B – Provide raw material needs within the vicinity, allowing greater convenience and faster turnaround rates compared to wholesalers.
Online Platforms – Utilise platforms such as Grab, Shopee, etc.

Ancillary revenue
Direct sellers – Provide seed-startup for neighbourhood representatives that are engaged in Group Buying.
Store licensing – Further expansion via licensing of stores which comes with royalty and sales percentage collection.
Strategic Alliances – To tie up with existing GMS/convenience stores eg; Baloy, 99Speedmart and 7-11.
Consignees – Space rentals and listing fees

Profit Distribution Plan

It is a one-stop convenient grocer offering products and fresh produce at exceptionally low prices. Glenn’s Grocer strives to build a sustainable business ecosystem targeting B2B and B2C segments in urban areas.

1. Limited accessibility and offering

Fresh fruits and vegetables are still mainly confined to regional supermarkets, markets and hypermarkets. Not as convenient as neighbourhood grocers.

2. Inefficient pricing model

The current heavy multiple layer supply chain model of a farm, distributor, wholesaler, retailer and customers adds to the cost factor.

3. Lack of resources for B2B
Micro entrepreneurs that are unable to start due to lack of capital.

Closing the gap
New stores within 10km radius of current outlets for the first two years. This effectively maximises the efficiency and serviceability of stores.

Target
Urban households and F&B operators within the business district.

Cost Saving
Wholesale prices to drive constant B2B and consumer purchases.

Opportunities
To provide seed funds for budding entrepreneurs. Bulk-buying enables better deals in the long run.

Glenn’s Grocer depends on both its core and ancillary revenue streams.

1. Core revenue

B2C – Provide delivery for both online and offline purchases at wholesale prices.
B2B – Provide raw material needs within the vicinity, allowing greater convenience and faster turnaround rates compared to wholesalers.
Online platforms – Utilise platforms such as Grab, Shopee, etc.

2. Ancillary revenue

Direct sellers – Provide seed-startup for neighbourhood representatives that are engaged in group buying.
Store licensing – Further expansion via licensing of stores which comes with royalty and sales percentage collection.
Strategic alliances – To tie up with existing GMS/convenience stores eg; Baloy, 99Speedmart and 7-11.
Consignees – Space rentals and listing fees.

Location 1: HQ Glenmarie

Location 2: Aman Suria

Grocery stores have proven to be remarkably resilient, acting as a recession-proof investment during the pandemic.

M. Faiz Zakaria, 37, Malaysian

Chief Executive Officer / Operations

Cristina Suzanne Stockstill, 36, Malaysian

Co-Founder, Head of Marketing & Brand Ambassador

Edmund Soon, 37, Malaysian

Head of Development

Brian Kiat, 37, Malaysian

Chief Merchandising Officer

a. Date of incorporation: 02/08/2019
b. Registration number: 201904002267 (LLP0021079-LGN)
c. Date of commencement of business: 17/09/2019

What does Glenn’s Grocer do?

Glenn’s Grocer is a one-stop convenient grocer offering products and fresh produce at exceptionally low prices. Glenn’s Grocer strives to build a sustainable business ecosystem targeting B2B and B2C segments in urban areas.

Where will Glenn’s Grocer be in 5 years?

Overall, Glenn’s Grocer aims to build a sustainable business ecosystem by expanding its business in specific locations across Malaysia and ensuring that it is able to continue to provide products and fresh products at exceptionally low prices while maintaining its quality. To do this, Glenn’s Grocer aims to expand and increase its number of outlets to 38 outlets and also aims to increase its total revenue by almost eightfold to almost RM40 million.

Why did Glenn’s Grocer choose this idea?

Glenn Grocer sees a gap in the market for fresh grocers that cater towards smaller operators and there was also a lack of choice in regards to grocers for households.

How does Glenn’s Grocer make money?

Glenn Grocer generates revenue via two main revenue streams: its core services and its ancillary services.

1. Core revenue

B2C – Provide delivery for both online and offline purchases at wholesale prices.
B2B – Provide raw material needs within the vicinity, allowing greater convenience and faster turnaround rates compared to wholesalers.
Online platforms – Utilise platforms such as Grab, Shopee, etc.

2. Ancillary revenue

Direct sellers – Provide seed-startup for neighbourhood representatives that are engaged in group buying.
Store licensing – Further expansion via licensing of stores which comes with royalty and sales percentage collection.
Strategic alliances – To tie up with existing GMS/convenience stores eg; Baloy, 99Speedmart and 7-11.
Consignees – Space rentals and listing fe

Can you explain how Glenn’s Grocer’s solutions work?

Glenn’s Grocer’s stores and products have four distinct features: Proximity New stores are within a 10km radius of current outlets for the first two years. This effectively maximises the efficiency and serviceability of stores. Target Glenn Grocer focuses on urban households and F&B operators within the business district. Cost Saving Provides wholesale prices to drive constant B2B and consumer purchases. Opportunities To provide seed funds for budding entrepreneurs. Bulk-buying enables better deals in the long run.

How will the raised capital be used?

How will the raised capital be used

What is Glenn's Grocer’s five-year projection for revenue?

Financial Projections

What problem(s) does Glenn’s Grocer solve?

Glenn Grocer has identified three main dilemmas in the current retail market:

1. Limited accessibility and offering
Fresh fruits and vegetables are still mainly confined to regional supermarkets, markets and hypermarkets. Not as convenient as neighbourhood grocers.

2. Inefficient pricing model
The current heavy multiple layer supply chain model of a farm, distributor, wholesaler, retailer and customers adds to the cost factor.

3. Lack of resources for B2B
Micro entrepreneurs that are unable to start due to lack of capital.

Why is Glenn’s Grocer uniquely qualified to solve this problem?

The Glenn Grocer management team is highly experienced with extensive networks in the retail and fresh produce and grocery industry.

Christina Suzanne Stockstill, the Co-founder and head of marketing & brand ambassador is an award-winning actress with a wide range of connections.

Edmund Soon co-founded and successfully set up a restaurant chain with 22 outlets. He has been active in the supply and distribution of fresh produce since 2001.

The Chief Merchandising Officer Brian Kiat is the founder of interior design consultancy and trading, Jin Huat Global for 5 years.

In addition to that, Glenn Grocer has a good and strong track record. Despite only operating since 2019, Glenn Grocer has been able to generate profits in 2020 despite the COVID pandemic. To date, it has established two physical stores and is planning to establish another. Their revenue in 2020 is RM2.02 million and they made a net profit of RM100K.

Last year, Glenn Grocer was able to successfully bring in 100,000 walk-in customers and have grown to 1,100 active members.

How does Glenn’s Grocer provide liquidity to equity investors?

Glenn Grocer is targeting to pay dividends to investors starting in the third year (2023) based on the profits incurred that year.

GG Dividend plan update

As part of the A’di Shares (Ordinary) offering, there shall be no pre-planned exit strategy/buyback option.

How is Glenn's Grocer’s business shariah-compliant?

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

Separately, Shariah advisory firm Adl Advisory has also produced an official shariah pronouncement letter to confirm the shariah status of this deal. View it here.

Glenn's Grocer Introduction Deck

Glenn's Grocer Valuation Report

“No shares will be allotted or issued based on this document after six months from the closing of the offer period.”

“This issue, offer or invitation for the offering is a proposal not requiring authorisation of the Securities Commission under section 212(8) of the CMSA 2007.”

“This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fundraising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.”

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“Affiliate”		means, in relation to a Party, any company or legal entity that directly or indirectly controls, or is controlled by, or is under common control with that Party. For this purpose, “control” (and each variation of that term) means direct or indirect beneficial ownership of at least fifty percent (50%) of the voting stock interest in a company or entity, or such other relationship as, in fact, constitutes actual control;
“Confidential Information”		means: any and all proprietary and/or confidential data and information of whatsoever nature (whether oral, written or in other tangible form, whether disclosed orally, visually, electronically or other intangible form) to Recipient including without limitation to the generality of the foregoing, employee data and information, know-how, ideas, intentions, inventions (patentable or otherwise) or patents), product information, services, trade secrets, software techniques, plans, procedures, processes, unpublished financial statements and information, licences, prices, price lists, pricing policies, customer and supplier lists, customer names and other information related to customers and suppliers, marketing techniques and marketing development and distribution, and plans containing or consisting of material of a technical, operational, administrative, economic, marketing, planning, business or financial nature, roadmaps, strategies, research and development, drawings, designs, specifications, or in the nature of intellectual property of any kind and relating to the Authorised Discussions and Purpose, provided by or on behalf of the Discloser, its Affiliates or their respective Representatives to the Recipient, its Affiliates or their respective Representatives, whether before or after the date of this Agreement; any and all notes, analyses, compilations, forecasts, studies or other documents prepared by a Recipient, its Affiliates or its Representatives which contain or is based upon, in whole or in part, any of the foregoing information set out in paragraph (a) above; and the existence and the contents of this Agreement;
“Discloser”		means any one of the Parties who is disclosing Confidential Information under this Agreement to the other Party;
“Recipient”		means any one of the Parties who is receiving Confidential Information under this Agreement from the other Party;
“Representatives”		means directors, officers and employees employed by, and external consultants and agents engaged by, a Party or (as the case may be) any of its Affiliates; and
“Third Party to the Recipient”		means the appointed advisors and consultants of the Recipient.

To	:	Ethis Ventures Sdn. Bhd.
Address	:	Suite 10, Level 6, Lobby A, Wisma UOA II, No. 21, Jalan Pinang, 50450 Kuala Lumpur.
Attention	:	Wan Mohd Dazriq bin Wan Zulkiflee
Designation	:	Chief Executive Officer
E-mail	:	dazriq@ethis.co

Glenn’s Grocer

SHARIAH ENDORSEMENT

SPEAKER

Project Pitch