Blog Details

1. THE "SKIN IN THE GAME" QUESTION

Investor: "You are asking for ₱450M for 25% equity. Why should I trust that you (the Founder) will stay motivated if I’m providing all the capital?"

• Detailed Answer: "While this ₱450M covers the CapEx and initial OpEx, my 'skin in the game' is the Intellectual Property and the 75% Equity I am retaining. For me to realize any significant wealth, I must take this company from a ₱1.8B post-money valuation to a ₱10B exit. Furthermore, my compensation is performance-linked. I am not looking for a salary; I am looking for the 75% upside. My motivation is to protect the equity I’ve spent years architecting."

2. THE "SALARY ESCROW" QUESTION

Investor: "Why are you locking up ₱70M in a salary escrow for 18 months? Isn't that 'lazy' capital that could be used for marketing?"

• Detailed Answer: "In the Philippine logistics and hospitality sector, staff churn is the #1 killer of service quality. By pre-funding 18 months of salaries for our 155-man team, we achieve three things:

  1. Talent Poaching: We can hire the best VNA operators and chefs from competitors because we offer 'Guaranteed Job Security.'

  2. Focus: Our team can focus on 'Concierge Quality' rather than worrying if the company has enough cash for next month's payroll.

  3. Operational Continuity: It ensures that even if we face a slow start, our 'Machine' (the hub) keeps running perfectly until we hit our 600-order-per-day target. It is an insurance policy for your investment."

3. THE "OFW BASKET" QUESTION

Investor: "An ₱8,000 Average Order Value (AOV) for OFWs seems high. How do you justify this number?"

• Detailed Answer: "The ₱8,000 isn't just groceries; it’s a 'Family Fulfillment Bundle.' A typical OFW remittance is roughly ₱15,000–₱25,000 a month. Currently, they send cash, and much of it is lost to transfer fees or mismanaged by the family. Our portal allows them to 'Send Goods, Not Just Cash.' An ₱8,000 bundle includes: ₱5k in bulk groceries, a ₱2k MyxxBistro family meal voucher, and ₱1k in household essentials. By consolidating these, we become the 'Personal Shopper' for the OFW, providing them peace of mind that their hard-earned money is being spent exactly on what their family needs."

4. THE "COMPETITIVE MOAT" QUESTION

Investor: "What stops SM, Landers, or Grab from copying your 'Phygital' model tomorrow?"

• Detailed Answer: "Three structural barriers:

  1. The Glass Wall/Shrinkage: Traditional retailers are built for 'Open Shelving' where theft is a cost of doing business. Converting to our 'Closed Warehouse' VNA model would require them to gut their entire store layout and change their DNA.

  2. The Delivery AOV: Grab is built for 'Small Basket' convenience (AOV ₱500-₱800). Their fleet can't handle the bulk ₱8,000 orders we move in refrigerated trucks.

  3. The Experience Center: We aren't a grocery store with a food court; we are a luxury lounge with a warehouse attached. Our brand is 'Concierge Hospitality,' which is a culture that big-box retailers find very difficult to replicate at scale."

5. THE "BREAK-EVEN" QUESTION

Investor: "What is our 'Death Date'? At what point does the ₱450M run out if sales are slow?"

• Detailed Answer: "Because 70% of the capital is in hard assets and salaries are pre-funded, we have a very long 'Life Flight.' Our break-even is 350 orders per day. Even at 300 orders, we are only 'burning' the inventory replenishment cost, not the infrastructure. With 5,000 members and a captive OFW audience, hitting 350 orders is a low bar. If we hit 600 orders (our target), the investor begins seeing dividend potential by Month 18. The capital only 'runs out' if we fail to hit 350 orders for more than 2 years—at which point the ₱280M in hard assets (Fleet/Construction) still exists to be liquidated."

6. THE "TRUCK BAN" QUESTION

Investor: " Traffic and truck bans are legendary. How do you guarantee 60-minute delivery?"

• Detailed Answer: "We use a Hybrid Fleet. Our 30 refrigerated trucks handle the bulk ₱8,000 orders during 'off-peak' windows or via 'Loading Gallery' pickups. For the 'within-60-mins' promise, we use our 30 EV Delivery Bikes. EV bikes are exempt from most traffic restrictions and can navigate Cebu’s narrow interior roads where a delivery van would get stuck. This 'Hub and Spoke' model ensures we are never paralyzed by traffic."