Wushoo provides a “Transit Hub” service for micro and small-&-medium business owners (SMEs) who have not found an efficient & cost-effective way to deal with small-quantity deliveries.
Our Transit Hub allow our customers to drop-off their products in the morning; then picked up and transported to their destination within 3 - 72 hours for less than a fraction of a full-load lorry rental or courier.
Wushoo tackles the small-quantity delivery orders. By describing “small-quantity”, it means that a business owner may have just 100 barrells of paint that needed delivery; or 250 fabric rolls that needed to be sent out. The orders are basically not large enough to have a full load delivery; neither can they be sent out via courier due to bulk-size and high logistical costs.
The existing solution in the market is being run very traditionally by “one-man-show operators” who have been doing this for more than a decade. The handling of such orders are not done systematically (i.e. no consistent pricing) and the business model is not scalable (i.e. the business is heavily reliant on the operator managing the clients and lorry drivers).
When I have 4-pieces of T-shirts to be delivered, I know exactly which transport provider can do so for me; but I will not know who can send 50 brand new 6-step ladders for me. Should I order a lorry, I will not be making full use of its space. Should I send the ladders for courier service, they will not accept it because the products are not wrapped and boxed or properly sealed.
Plus, as a business owner, I probably will not make much money selling 50 ladders, so it will not make sense for me to spend too much on “transportation expenses”.
Wushoo currently is able to provide an economical solution for such order consolidation. The Transit Hub serves as a ‘drop-off point’ to gather products of various sizes and shapes which are to be delivered to the same city or destination.
Wushoo partner with empty-leg independent lorry drivers to pick up the products on their way back to their home-base. Since Klang and KL is a popular drop-off points for many out-station deliveries and vice versa, Wushoo is tapping into this resource to leverage on the lower delivery pricing (i.e. empty leg trip) and efficient use of space (i.e. “barang tumpang”).
To have a better understanding of Wushoo Transition Hub, please watch this 40-seconds video. You will see that the goods/products require a forklift to load them onto a lorry. Items are usually bulky (i.e. big-size) and heavy.
Wushoo first started operations in June 2021 where the focus was to get user to place a delivery order via the mobile app. After struggling for 6-months to increase customer base and retention rate, we changed our business model to offer “Transit Hub” service starting March 2022. You will see a significant jump in the Gross Transaction Value and our Revenue from March 2022. It is because we were able to get business owners operating near our hub to use our service for goods delivery. We have served more than 450 customers in our transit hub since March 2022.
Monthly Revenue vs Expenses (History & Projected)
We are aiming to quadruple the number of transactions in the next 12 months (by Dec 2023). The business achieved GTV of RM760K and total revenue RM121K from Jan – Jun 2022. with seed funding. With funds from ECF-round, we are utilizing 60% of the funding to drive sales and to expand our customer base.
We are keeping our expenses low as we grow. As time grows an increase in expense will come from increase in ads spent & marketing effort, plus hiring of staff to support the increase in transactions. We expect to break-even by January 2024.
Here are some of the example existing customers whom we serve.
These are some of our clients’ businesses:-
- Manufacturer and/or distributor of products such as gloves, plastic products, acrylic sheets, etc.
- Metal fabricator
- Packaging manufacturer
- Importer, wholesaler, trader of raw industrial materials
- Snacks wholesaler and retailer
- And lots more
Customer Acquisition Plan
Wushoo’s plan to acquire more customers is through the work of our sales team who will go door-to-door to sign contracts with business owners of similar profiles.
We intend to strengthen our brand positioning when there are enough funds for us to afford proper sign board, uniforms, adopting a consistent corporate identity, and so forth.
Wushoo aims to make 80% of its revenue from transit hubs. The business model is focused to grow our presence as a ‘Transit Hub Service Provider’ in Klang and Kuala Lumpur. With growing transactions (i.e. product drop-offs), we can fully utilise space in every lorries to transport our goods to their respective destination. By doing so, we will be able to command a higher margin and also we will be able to achieve a “pricing standardisation” when customers know how much exactly 10 barrels of paint and 20 6-step ladders will cost to deliver.
Pricing is subjected to the size of the cargo, the quantities to be transported and the distance from point A to point B. For example, 100 gallons of paint travelling from Klang to Butterworth is about RM200 per trip.
Total Addressable Market (TAM)
MALAYSIA FRIEGHT & LOGISTICS POTENTIAL
The Malaysian freight & logistics market was valued at RM154 Billion in 2020; and is expected to reach more than RM225 Billion by 2026.
Serviceable Addressable Market (SAM)
GROWTH POTENTIAL IN MALAYSIAN SME’s
SMEs contributes 38.2% of the nation’s GDP in 2020 and out of this, the manufacturing segment is worth approximately RM15 Billion across all segments.
Serviceable Obtainable Market
GROWTH POTENTIAL IN KLANG VALLEY SME’s
Wushoo aims to tap into the niche of just just 0.0001% of the Serviceable Addressable Market by 2025 with 2 or 3 operating Transit Hubs by then.
The transit hub business is similar to a “post office” business where it is a ‘drop off’ point. Transit hub consolidates the products that will go in the same direction. The preferred transition-period should be almost immediate because storing or parking of products will cost us money. We are not in the warehousing business.
Additionally, this is a business model that courier services will not do because their store layout is not catered for this. They serve a different customer segment. Our customers have bulky items in small quantities that need out-station delivery and they are highly cost-sensitive.
It is also not the business model of a logistics app platform companies. This business requires a storing or parking space. You can see from our video that our space is open space with enough room for the forklift to manoeuvre.
The current operators of transit hubs are done very traditionally by operators whose focus are not on growth and scale.
Wushoo’s vision is to be a preferred choice for console goods delivery in the micro and SME market with transit hubs opening in each industrial area such as …
- Bukit Raja Industrial Park
- Beranang Industrial Park
- Bandar Sunway Light Industrial Park
- Mah Sing Integrated Industrial Park
- Kepong Industrial Park
Date of incorporation : 16th May 2018
Registration number : 201801018363 (1280379-P)
Date of commencement of business : 1st June 2021
History of business from the date of incorporation :
- 2018 - an idea was formed & company was incorporated
- 2019 - looking for the right opportunity to launch
- 2020 - found a tech person and offered him to be co-founder
- 2020 - raised paid up capital to RM100K with 4 co-founders
- 2021 - raised SEED ROUND RM25K; then RM325K; then RM250K
- Jun 2021 : started Wushoo Logistics Mobile App Delivery
- Mar 2022 : change business to focus on ‘Transit Hub’ provider
- 2022 - internally raised RM300K from existing shareholders
Founder, CEO & Managing Director
Samuill possess experience as Logistics Director with his previous company while also holding another position as Sales Director. He has strong market insight to analyze customer’s needs and to produce creative marketing campaigns to drive sales.
Co-Founder, CTO, Director
Allan is a Computer Science graduate from UTM. He was an in-house programmer for INSTEP (Institut Teknologi Petroleum Petronas). He possess strong skills in cycbersecurity, network architecture and big data engineering.
LOW HEE MUN
Director of Wushoo Group Sdn Bhd / Regional Manager, BD of MCM Holding Ltd
Hee Mun graduated with Honours in Business Administration, majoring in International Business from Open University. He has vast experience for more than 10 years in the corporate industry. He specializes in project management and financial control.
Adj. Prof. Ts. MAXSHANGKAR
Group CEO, MCM Holding Ltd
Max graduated with an MBA (Distinction) from University of East London, UK. He is a serial entrepreneur and an investor with diversified portfolios, globally. Under his leadership, MCM invest in seed-round and pre-series A in numerous companies.
- 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 fund raising 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.
WUSHOO GROUP SDN BHD TEAM MEMBERS
Allan Leong Hao JunChief Technology Officer
Low Hee MunDirector
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