Financial Planning

HomeDelight will initially start with a pilot project in IIM Indore where we will tie-up with
homemakers present in campus to make non-perishable food for IIM Indore residents. This
will be the phase I of our launch which will last for about one year to test the success of our
project. As we are making and delivering food items inside the campus itself, practically in
our pilot project, we won’t be incurring any delivery costs. Also, at initial level, we will build
the app and website ourselves using internal skillsets of our team.
Hence, for our pilot project, our only costs will be to provide boxes to the homemakers to
store the food items.
Coming to Phase II costs, we will be expanding our business to whole Indore city, so we will
have to incur delivery costs at that point. Our primary costs will include - monthly office rent,
delivery person’s commission and website maintenance.
Now about the revenue model:
 HomeDelight will earn commission on every sale it makes.
 HomeDelight will earn subscription fees from regular customer to get promotions.
 Affiliate marketing will also earn us a considerable share from market.

In long run, people start liking the products we can keep some of the products in consumer
stores like Pi-shop, D-mart etc. Here, we will act as aggregator to collect the food items and
verify their food for safety and standards.

Projected profit/loss for Pilot Project (Year 1):

Potential Market 2000 people

Available Market (10%) 200 people
Average Monthly Revenue/Person Rs. 200
Average items purchased/month/person 4 units
Average Yearly Revenue/Person Rs. 2400
Total Revenue Rs. 480000
Our Commission (10%) Rs. 48000
Boxes Required (4*200*12) 9600 units
Expense on Boxes (Rs 2.5/pc) Rs. 24000
Marketing Expenses Rs. 2000000
Loss (Expense-Commission) Rs. 1976000

Projected profit/loss Phase II (Year 2):

Assumptions
 According to our Market Analysis our potential target market is 1260000.
 Considering our marketing efforts, we will develop about 5% buying interest.
 Potential Market 1260000 people
Available Market (3%) 37800 people
Average Monthly Revenue/Person Rs. 200
Average items purchased/month/person 4 units
Average Yearly Revenue/Person Rs. 2400
Total Revenue Rs. 90720000
Our Commission (10%) Rs. 9072000
Boxes Required (4*37800*12) 1814400 units
Expense on Boxes (Rs 2.5/pc) Rs. 4536000
IT Expenses Rs. 500000
Monthly Rent Rs. 40000
Rent Expense Rs. 480000
Salary and Wages Rs. 400000
Infrastructure and Misc. Expense Rs 500000
Delivery Agents Commission Expense
Rs. 907200
(10% of our commission)
Accumulated Loss from 1st Year Rs. 1976000
Total Loss Rs. 227200

Year 3 (Break-even Year):

Potential Market 1260000 people

Available Market (6%) 63000 people
Average Monthly Revenue/Person Rs. 200
Average items purchased/month/person 4 units
Average Yearly Revenue/Person Rs. 2400
Total Revenue Rs. 151200000
Our Commission (10%) Rs. 15120000
Boxes Required (4*63000*12) 3024000 units
Expense on Boxes (Rs 2.5/pc) Rs. 7560000
IT Expenses Rs. 800000
Monthly Rent Rs. 60000
Rent Expense Rs. 720000
Salary and Wages Rs. 1200000
Infrastructure and Misc. Expense Rs 800000
Delivery Agents Commission Expense
Rs. 1512000
(10% of our commission)
Marketing Expenses Rs 1000000
Accumulated Loss from 1st Year Rs. 227200
Total Profit Rs. 138000

By year 3 we will generate a profit of Rs 138000.