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SUMMARY VIDEO

COMPANY DETAILS

Summary
Three reason to invest in SOTIPSY

1. Business is booming:

In 2020, at a time when many companies were struggling, SOTIPSY added more than 5,000 new customers and brought in RM 1mil in revenue. This is a 4,900% increase in revenue over the same time period in 2019.

2. Projected growth is exponential:

In E-commence, alcohol sales are expected to rise from $3billion to $13.4billion by 2024. That’s 4x the current rate of growth!

3. It has high market demand!:

Working together with more than 100+ merchants and adding more than 10,000+ products in our e-commerce marketplace in less than 18 months

Slow and steady wins the race.’

Such is the case with ASEAN’s leading alcohol marketplace, SOTIPSY which carved a unique, step-by-step growth strategy for itself and eventually succeeded in penetrating the market in Kuala Lumpur, Selangor, Penang, Johor in Malaysia and Florida, USA. Founded in 2019 by Jeffrey Lim, the Kuala Lumpur-based start-up which was one of the first few on-demand liquor delivery apps to make its way into the market, and is today one of the dominant players in the space. As per Slice Intelligence, SOTIPSY currently holds the second largest share among all on-demand alcohol delivery Malaysia.

Problem

With food delivery becoming a commodity business, SOTIPSY must continue to innovate to defend its direct-to-home alcohol delivery platform model

It’s 10pm. The dinner party in your apartment is going splendidly. Everyone is chatting after the meal, with no desire to leave your living room. Just as you’re about to pat yourself on the back for a job well done, you notice that your glass is empty… the conversation might be freely flowing, but the wine just ran out!

With no bottles in your fridge and no liquor store for miles, what’s a good host to do?

  1. There is a lack of convenience acquiring alcohol at odd hours.
  2. There is a limited variety of offerings at offline stores.
  3. Limited sellers can provide on demand delivery in less than 30 minutes 24/7

This is the kind of consumer problem that inspires the leaders at SOTIPSY: an e-commerce platform for alcohol direct-home delivery.

Solution

SOTIPSY is our primary brand, and delivers alcohol, beverages and snacks to our customers in 30 minutes or less. Our customers can also order online and pick up their goods at a store nearby or have the goods shipped to their location.

Traction

Since its inception in 2019, SOTIPSY has been tirelessly working towards providing a unique, unparalleled experience to all its users.It is what makes the start-up stand out among other on-demand liquor delivery players. Some of its noteworthy offerings, which are different from the others are listed below –

  1. Ample Choice to Users – SOTIPSY has over 10,000 different products listed on its marketplace, which gives consumers a pool of options to choose from. No other on-demand booze delivery player can boast of such a rich offering, which clearly gives SOTIPSY an edge. Moreover, since there is no mark-up charged on any of the products, the fair pricing also works in the user’s favour.
  2. Expansive Reach – SOTIPSY currently delivers in various countries and cities such as Kuala Lumpur, Malaysia and Florida, USA, . We are also expanding into Singapore, Thailand and Indonesia in the year 2022.
  3. Ease of use – The SOTIPSY mobile app boasts of a rich, simple and user-friendly interface. Consumers can easily explore drinks, compare prices and place their orders for alcohol on-demand through the app. This ease of use that the platform offers is one of the factors why it rose to popularity among consumers.

Customer

M40 (tourists, white collar workers, social drinker)

SMEs and event companies through our B2B and B2B2C strategies 

Business Model

The business model of SOTIPSY is pretty unique. The start-up neither sells nor delivers alcohol, which means that it does not have any products or a delivery fleet of its own. It simply directs all the orders to its partner stores, which then fulfill all deliveries using their own inventory and delivery personnel. This is the reason why SOTIPSY proudly calls itself a tech intermediary.

Partnering with Retail Stores

Having quality suppliers on board has always been a key focus for SOTIPSY. Before partnering with any local liquor store, it conducts a thorough check on each store based on various parameters such as the store’s product range, product availability, product prices, delivery team, POS, etc. Once the initial check is completed, SOTIPSY then seamlessly integrates with the POS systems of all the chosen liquor retail stores, which automatically brings their store inventory online. With the technology that SOTIPSY offers, all its partner stores are able to accept orders instantly and fulfill them efficiently in less than an hour.

For all these retailers, partnering with SOTIPSY actually increases their online sales and lifts average order value.. Many of these local stores who do not have a web presence or an online product catalog of their own are able to generate increased sales by simply leveraging SOTIPSY's platform, something which would not be possible otherwise. SOTIPSY's expansive reach, a strong customer base and great brand recognition has been helping retailers to connect with many new consumers each day. According to a report, 50% of SOTIPSY's consumers have confirmed having shopped from a retailer for the first time using SOTIPSY's platform.

Market

Worldwide - $1.6 Trillion on Alcohol per Year and with more than 100,000 liquor stores. 

Competition

Evidence suggests delivery has become a price-driven commodity business. Multi-homing is rampant: every SOTIPSY drinker likely also has Grab, FoodPanda, Shopee etc. installed on his/her phone. However, one thing that makes SOTIPSY unique is its understanding of the idiosyncratic regulations that apply to alcohol.

Alcohol distribution in the World is heavily regulated and operates under a “three tier system”, requiring retailers or bars/restaurants to purchase from distributors rather than from manufacturers themselves. In most situations, end consumers are also not allowed to purchase from manufacturers, so DTC isn’t an option. Laws, taxation policies, and age verification requirements vary country-by-country, adding more challenges to the picture.

This might sound like a reason to be pessimistic about alcohol e-commerce, but SOTIPSY sees this complexity as an opportunity for competitive advantage. Most delivery players (Grab, FoodPanda) have shied away from alcohol because compliance with liquor laws would compromise their core businesses.

SOTIPSY is different, because it never takes possession of the product (delivery is executed by member-store employees) and because it doesn’t take a cut of sales (it charges a flat monthly fee). This operating model design is a strategic advantage that protects SOTIPSY from the entrance of Grab or other scaled delivery incumbents. The proposition of SO TIPSY is much more than delivery.

FUNDING

We seek RM 790,000 in funding to:

1. SOTIPSY tech development: 6%
To enhance current function with STRIPE CONNECT for Singapore and Thailand, integration to enhance product competency and multiple function for user, increase of Server and development  in deploy of advanced AI technology.

2. Sales and Marketing: 23%.  
Brand awareness and market penetration is crucial for the start, therefore to build trust among customer and merchant thru this exercise to attract international attention for future market development 

3. Operation and Market Expansion:  71%
 Funds will be used to develop sales initially in the Singapore and Thailand market, and continue developing the functionality of the SaaS package.

Vision

At SOTIPSY, we ignite opportunity by setting the world in motion. We take on big problems to incubate online beverage brands from wineries, breweries and distilleries, making consumers’ life better. The mission is to be the world's largest alcohol marketplace and the best way to shop beer, wine, and spirits.

Investor

The founder, Jeffrey has invested RM900,000 into building the company. The on-demand alcohol delivery giant has till date conducted 2 rounds of funding, raising a significant amount of Rm 425,297 from different angel investors. In its last funding round, which was held in July 2020, SOTIPSY secured an enormous sum of RM 1.33 million The funds raised are being used towards improvement of the start-up’s digital infrastructure and also for various expansion activities, which includes signing up more stores in more cities, with an aim to broaden the customers’ choice horizon.

Teams

Advisor


Datuk Ezwan Hamdi Ellias
Co-Founder at Next Future Corp


Edward Chin

Managing Partner SEATech Ventures Corp


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