The Most Convenient Gifting Solution in Ukraine

www.ugift.com.ua www.angel.co/ugift

Problem = Poor gifting solutions in Ukraine

1
Gift Cards by Payment Systems
Not available in Russia/Ukraine due to legislation (not expected to change soon)

2
Online Gift Cards by Retailers

Mainly only promoted on companys own website Often not visibly appealing as a gift

3
In-Store Gift Cards by Retailers
Requires merchants to make a design, print many cards, purchase special software

4
Online Gift Card Specialists

Only promoted online Typically only sold inside the merchants own store (ie. attracts only current customers) Little / no personalization Not promoted by partner
www.ugift.com.ua

Our Solution = Maximum flexibility where you buy

On uGift Website On Partners Website using uGift API

Our website has the simplest, best user experience of any gift certificate site on the Ukrainian market. See for yourself! At our Partners Shops (just grab a card from stand and pay) At Retail Partners (sell universal certificates for 3 denominations)

Our Solution = Maximum flexibility where you use (over 70 partners signed in Kiev)
Salons

Photo sessions

Bowling
Retail Stores Restaurants Sports Clubs / Dance Studios

Karting

Snow boarding lessons

E-stores
Aqua Park

Cooking Classes

Our Solution = Maximum flexibility in how to deliver

Physical Card Delivered by Courier Email

Facebook Wall

SMS

How our product works?

1
Customer sees ad for uGift on Google or sees our stand in his favorite restaurant or salon

Customer visits site and selects what merchant he wants to buy a gift for and amount to give

Customer makes personalized greeting card and uploads optional photo(s)

Merchant checks security code to authenticate and accepts the uGift

Receiver gets uGift and uses at the store

Customer choose delivery method and pays

Delivery

Email

SMS

www.ugift.com.ua

How we get customers

Online Advertising / SEO Weekly Friends Birthday Reminders

In top 1-2 pages of search results on all key search terms relating to gift certificates Visibility in Retailers & at our Partners Outlets Active Social Network Strategy

A4 sized stand sits near cash register in 30+ partners and 4 retail partners

150 Likes on FB, 300+ on vKontakt and many more on Google+

The main competition is from online gift specialists

Online Gift Certificate Sites (Bodo.com.ua, Originaloff.com.ua) In-Store Certificates (Smile)

Their strategy: Focus on selling online and target mainly fun activities (eg. skydiving). Their Strength: High search results, recognized online brand uGifts Advantages: 1) No service fee 2) Ability to add greeting cards 3) Much more options (especially restaurants, beauty) 4) Better design/user experience 5) Ability to buy in partners store or site 6) Ability to buy in retail outlets

Their strategy: Provide a choice of several different gift options and allow receiver to choose one. Sell in retail and online. Their Strength: Good retail presence, recognized brand uGifts Advantages: 1) No service fee 2) Ability to add greeting cards 3) Instant delivery by SMS & email 4) Ability to choose any of uGifts 60+ partners 5) Ability to buy in partners store or site
www.ugift.com.ua

Right now there is no competition in retail it is a land grab!! R

Our Business Model generates strong gross profit!

Economics of Typical Transaction Voucher for 200uah
More than 50 partners signed at margin of 30-40%* Daily Deal sites take 75%+ uGift is an easy sell!

$21
(65%)
$9
(35% margin)

$25

$5
Cost of a new customer

16% of card value

$4
Gross profit

Average value of a card

Payment to a merchant

Revenue per customer

Target conversion is 2% on combination of CPC/search engine results (current = 0.5%, reducing through user experience improvement)

Target cost of 1 visitor = $0.10 (current = $0.15, reducing thru SEO strategy)
Therefore new customer will cost ~$5 (or $0 if they find us in-store)
*Standard margin is 40% but just 30% for those merchants that offer to place a uGift stand that we provide them at the cash register.

www.ugift.com.ua

Validation of our model

We are already selling about 5 -10 certificates per week or about $1000 of gross sales is forecasted for August This is with very little marketing budget and we are just launching our vastly improved new site We have invested in SEO and it is starting to show its results uGift is in top 2 pages of search results on most popular search terms Retailers are eager to sell our certificates and are willing to do so for a margin of just 11%. We already have 4 retailers signed and are talking to numerous others. Our partners are willing to sell our certificates in their own stores and still give us 30% commission (about 40 of our 70 signed partners have agreed to this so far)

www.ugift.com.ua

Our Team is one of the most experienced startup teams in Kiev

Team
Ken Leaver CEO of Groupon Ukraine, the leading daily deal site in the country 7+ years of strategy consulting experience (incl. BCG) + 3yrs at Visa Inc. COO - Andrey Jivolovich Formerly head of strategic projects at Groupon UA Previously was an equity trader at Phoenix Capital CTO Mark Magura Formerly CTO of Vertigo Graduated National Aviation University with specialty in programming Head of Sales Andrey Tirel 2 years at DSS Global Trading where Andrey rose from Junior Specialist to Head of Dept.

Board
Hrish Lotlikar Managing Partner, Eastlabs As working as a VC at Spencer Trask Ventures, invested in Innocentive, Cybersettle, LocalMatters.com, others Dmitry Havrylenko Managing Partner of Investment Banking, Pheonix Capital Managing Partner at Concorde Capital

Mentors
Daniel Tonkopiy Co-founder and CEO of Best.ua, one of the leading review portals in Ukraine Alexey Orap Co-founder and CEO of YouScan 15+ years experience in Internet and telecom (Yandex, Alcatel-Lucent)
www.ugift.com.ua

The Ask and Funding Uses

Looking to raise $80,000 of which we already have $40,000 as a soft commitment This will be used for: -$20,000 for marketing (SEO, Pay-per-Click) -$30,000 expansion of partner network & expansion of retail sales in Kiev -$30,000 expansion into 5 regional cities Milestones that we will reach: 1) Break-even by February 2013 (no further funding will be needed before achieving break-even) 2) $20,000 of monthly sales by end of year

www.ugift.com.ua