Fruitful Day, a Dubai-based fresh fruit delivery company, was launched in 2015 by three female entrepreneurs. Since then the company has grown consistently and it was in need of capital to fuel the new growth plan and the launch of the popsicles line.
Fruitful day needed a financial model to show to the investors the output of the Business Plan and the valuation for the fundraising rounds.
CFO ventures worked closely with the founders to decompose the business model and build a solid financial model that reflected the actions identified in the business plan. Our approach is always an interactive process where we define the key business drivers, milestones to achieve the desired results and highlight the financial output.
The goal is to build reliable projections that would serve as a basis for the delivery of the plan and as guidance for the investors to understand the business opportunity and evaluate the investment potential return.
Decompose the business model and make the assumptions of the Business Plan explicit. We defined the key milestones to achieve the desired results and highlighted the financial output.
A robust financial model and an exhaustive business plan built on robust assumptions, succumbing to the skeptical view of the consultant, increase the chances of a positive outcome.
For achieving this we closely cooperate with the founders to decompose the business model and make the assumptions of the business plan explicit and objective.
Our approach is based on building reliable projections that would serve as a basis for the delivery of the plan and as guidance for the investors to understand the business opportunity.
As an initial point we dive into analyzing the metrics of unit economics. The unit economics shows how much value a single unit sold will generate for the business. It shows the profitability for a particular business model on a per unit basis and helps to understand the long-run sustainability of the company. This is the base to estimate the business potential and scalability and define key metrics to achieve.
The assumptions are defined as key business drivers that would impact the financial output and (price increase over the years, the number of customers/clients that can be achieved in a certain timeframe, CAC, etc). These assumptions could change and with them the output, it is fundamental to adjust assumptions to the real economic situation and the demand side to market data analysis.
Scenario analysis is a tool that empowers a company to develop a mid and long-term strategic vision and examine the robustness and consequences of internal or external changes (price volatility, overheads reduction, increasing marketing spend or higher CAC, productivity efficiency, etc).
Once structured the financial model showed the investment needed to deliver the Business Plan. We helped the funders analyze how this could change in the different scenarios and the implied valuation range ( based on the different valuations methods, DCF analysis, comparable company analysis, precedent transactions, VC method).
The company raised Dh3 million ($816,726) bringing on board new investors from countries including the UAE, Saudi Arabia, Switzerland and Singapore,
The company said it surpassed its original fundraising target, and will use new funds to focus on further horizontal and vertical expansion in the home market.
Link to press release