The much needed updates to the face of the DND LLP, its mobile App for improving the consumer interaction with the mobile application

Assignment Taken

FUNDRAISING PROPOSAL LETTER

 

Our company is one of the leading startups in India. We have been growing at a rapid pace and have always maintained our growth ratio ahead of industry growth ratio. The company has an astonishing management team who believes in hard work and strategic planning for higher achievements. Our goals are broad and we keep vision to reach the summit of success. Our mission is to achieve the number one position in the industry and also appreciate the value of investments of our investors in our company.

Our business is a daily delivery business. We deliver dairy products every day to our customers. The business is a mobile application based business. This application helps us to connect with our customers. Our customers subscribe to our service through the application for the daily or monthly period and we deliver the different dairy products and other products as per their requirements.

We have a customer base currently in Delhi, Bangalore & Hyderabad. We deliver more than 6000 liters of dairy products every day. We have tie-ups with multiple dairy production businesses and also more are willing to connect with us. Our current capacity is of 80 delivery men and we hold multiple warehouses across the city.

As we can see a steep growth in our business we are building an expansion plan to reach more customers and deliver a satisfactory service. We have targeted to expand our business 300% in the next five years. We aim to reach more than 50000 customers in the next five years and increase our market share in such a flourishing industry.

Our growth plan includes the addition of capacity for which we are planning to target four new cities that are Mumbai, Pune, Chennai & Kolkata & open 4 more warehouses in different locations in each of these cities. This requires the capital of 25 Crore rupees. We are planning to raise these funds from interested investors. This fund will be raised through Non-Convertible Debentures. The investors will receive a coupon rate of 7.5%. The term required will be of 7 years.

Thank You.

 

The above decision is been taken on the basis of the Income statement projection from FY2018 to FY2026E. 

From FY2020-FY2026 the business is expected to increase in sales rapidly. The high rate in the increase in sales and less rate of expenses will provide profits which show in FY2022. The profits are not sufficient for the expansion project of DND and hence more funds are supposed to be raised.

So in order to raise the funds we took the debt option by issuing Non-Convertible Debentures for 7years, Coupon rate at 7.5% for the investors interested.

The benefit of choosing debt is it occurs less financing cost, maximizes Financial leverage and because of interest deduction we can get benefit on Tax savings.

Also, we won’t be sharing any equity with the investors because of which the major decision-makers will still be Mr. Sam Malhotra & Mr. Rajish Gupta the owners of the DND LLP.

The company needs funds to open a warehouse in 4 new cities, the approximate expenses for the warehouse are ₹25 Crores.  

So instead of going for an Equity fund, Debt funds is efficient for this expansion project which will lead the business towards a better future.

Case Understanding

As per the given case scenario, the Daily Needs Delivery LLP offers an App-based ordering system of Milk, Curd and Paneer in cities like Bengaluru, Delhi & Hyderabad to a consumer base of 4000 users as of 20th Feb 2020 with their corporate office at Bangaluru. The Mobile App is focused mainly on the consumer side where they can order for their daily needs & can subscribe for monthly deliveries, mark dates when they do not need delivery, the app also has features of wallet payment, refer services to friends and family, delivery calendar, DND consumer app uses BHIM UPI for wallet recharge.

BCS Solution Summary

Major areas of improvement can be identified from two sides, 1) Consumer End 2) Company End Consumer End has the following issues: • Missing Deliveries • Delivery of wrong products/ missing products from the delivery • Lack of feedback features for consumers in the mobile App • Foul smell and a bad taste in the delivered products Company (DND LLP) has the following issues: • Delivery partners claim of deliveries which consumers did not receive • Irregularity of delivery boys • Losses due to the perishable nature of products • Loss of consumers in Non-Dense areas The DND App can get the following features as an update for its consumers: • Real Time Delivery Tracking(by GPS) • SMS alert details edit option • Add alternate recipient to accept delivery • Daily delivery Cart • Drag and drop items • Alter delivery items (30 hours before the delivery date) • Review delivery & Report delivery • Chat Bot with regional language(option) • Delivery Guy Registration & login

Solution

A solution to tackle the situation faced by DND can be handled if the firm decides not to restrict its mobile app only to the consumer end but also towards the delivery partner's end. If they are able to improve the app with an update which will also have a login feature for the delivery guy, this can help them improve their delivery process and will make it more efficient.

The SMS alert feature and real-time delivery tracking system will help consumers in their deliverables and delivery guys to improve their efficiency in delivering the products to the end consumers.

The SMS alert feature will have the complete details of the items to be delivered and will be visible to both consumer and the delivery guy so missing item on the list to be delivered and delivery of wrong products will be taken care by this feature as the consumer will know from the message what items he/she has to check in the parcel before sharing the OTP with the delivery guy.

Now after every delivery, the consumer can give a review about the delivery and can also report the delivery from the mobile application with just a tap on the daily delivery review and report button in the app.

The company now has an inventory management system which will make sure any item will not remain in the inventory for long and will be dispatched according to the perishable nature (Shelflife) of the product because of which complaints like the foul smell and bad taste in the delivered products will be eliminated.

The updated version of the mobile app will now have a login option for the delivery guys in which their daily activities will be shared with them and with their real-time location being tracked by GPS with the company and consumer, will also help the company understand their daily work-related activities (absentee or presence for work).

The delivery guy will be logged in at the time of delivery so that he can take the OTP from the consumer to mark his delivery complete, the OTP received will be a proof that the delivery was done and the products were delivered properly.

The new Inventory Management System will take care of the batch of the products to be delivered when, where and to whom. It will make sure that the products are being pushed out of the inventory on or before time so that the spoilage can be reduced, for this FIFO (First In First Out) approach will be adopted.

Consumers in Non-Dense areas are the ones that were not covered so far because of the cost involved. But with the algorithm based on Traveling Salesman principle, every delivery guy will be covering multiple areas in the Dense part and few areas of the Non-Dense part so that both are being covered properly. Based on the algorithm, every newly joined consumer will be a node to the algorithm and based on the number of delivery guys available to cover a particular area, the critical path for every delivery guy will be calculated and found. He has to follow the path in the order as displayed on his mobile handset and will be marking the delivery as either complete or incomplete as per the order of the path. This will reduce the time for delivering the products to the end consumers as per the path selected for the delivery guys, and always the earliest path will be calculated for the delivery guy covering maximum consumer and deliveries in both dense and non-dense areas.

The Real-Time Delivery Tracking will be done by the mobile app gaining access to the GPS (Global Positioning System) of the mobile handset. Because of this, the consumer will be able to track his delivery and the company will be able to track the work done by the delivery guys to keep a record of the same.

The SMS alert will be having a format of ----Name of consumer, Name of the alternate recipient(Optional), OTP(5digit), Products to be delivered (list), details of the delivery guy(name and contact number), expected delivery time---- so that the consumer will be fully aware of his delivery details.

In the edit contact option, a new feature will be there to add the name and contact details of the alternate recipient to accept the delivery in absence of the actual consumer, this can only be done through the consumer’s end and his/ her login and the added alternate recipient will receive SMS only till his name is ticked for the delivery (share daily delivery details option) or else there won’t be any SMS sent to them. (Note: This alternate recipient can be granted authority as per the delivery calendar of the consumer, and can be anyone who is available at the time of delivery of the products for example neighbor, the watchman of the building, etc).

The consumer will have a new Daily Delivery Cart which will also have a drag and drop items feature to add or remove items from the Cart, which will be automatically updated through the server to the company data and will also reflect in the product delivery list of the delivery guy.

Along with this the consumer can alter their delivery items (on or before 30 hours of the delivery) because of this they can change their daily deliverables and the delivery will be managed within the 30 hour time.

After every delivery received the consumer will have an option to Rate, Review and Report the delivery, no need to find an email ID to report a problem. The responses will be directly sent to the head office along with the regional office and their query will be addressed within 24 hours, with the response on their registered email ID along with a reminder on their mobile phone via SMS alert.

Introduction of the ChatBot function with the option of regional language, for which a team of 3 will be addressing queries manually where there is some issue with the communication or else the chatbot will work on a keyword approach to help address the queries of the consumers and will interact with them.

Note: Since the target audience of the mobile app is from major cities like Delhi, Bangalore, and Hyderabad. People will not find it hard to use the app, though after the updates the video to use the new features will be available and a virtual tour of the new features will be also given in the mobile app after the successful installation of the updates received in the app on the mobile device.  

Conclusion

If the above mention pointers are taken care of, the DND LLP will be able to tackle most of the challenges which it faces today and will be able to make better profits in the near future by FY2022 estimated along with an increase in its consumer subscribers from current 4000+ to 50000+ and an employee strength from 90 to 370 in a span of seven years. The sales will escalate rapidly and with all of these, they will be able to address their consumers with more features and better services in the near future since it has the potential to multiply itself and could also increase its products on the list of products for the consumers.

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