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🌍 PREPURCHASE

Solving Food Insecurity in South African Townships

A Social Enterprise Built on Dignity, Not Profit Extraction

Investment Pitch Deck | January 2025

📊 THE CRISIS WE'RE SOLVING

South Africa's Food Security Emergency (2024 Data)

Food insecurity has reached its highest point in more than a decade, with South Africa's food security score dropping sharply from 64.9 in 2019 to 45.3 in 2023.

The Numbers Are Devastating:

1 in 4

Children in the poorest households are going hungry

4.7M

South Africans fail to meet minimum daily energy requirements (up from 1.8M in 2001)

20%

Of South African households are food insecure (1 in 5)

16.7%

Female-headed households in rural areas face hunger (vs 12.5% for male-headed)

Township Reality:

Root Cause:

It's not lack of food - it's a CASH FLOW PROBLEM.

💡 OUR SOLUTION: PREPURCHASE

The Concept

Simple: Families pre-purchase bread once per month when they have money (payday), then collect daily from local spaza shops using a QR code. No cash needed daily.

Why It Works:

💰 Solves cash flow timing

Buy when you have money, eat all month

🙏 Preserves dignity

No begging, no debt, no shame

💪 Builds savings discipline

Forces budgeting at month-start

🏪 Supports local economy

Spaza shops get upfront payment

♻️ Reduces waste

Better forecasting = less spoilage

🎯 THE SOCIAL IMPACT MODEL

We Are NOT a Tech Company. We Are a SOCIAL ENTERPRISE.

Our mission: Ensure every township family can afford daily bread with dignity.

Impact-First Pricing Philosophy

For Residents:

Bread costs:        R20.00
PrePurchase fee:    R0.20 (1% - almost invisible)
Total paid:         R20.20

Why only 1%?

For Spaza Shops:

Monthly revenue:    R10,000
Platform fee:       R100 (1%)
Settlement:         R9,900 (paid weekly/bi-weekly)

Why shops win:

The Value Exchange:

📈 SUSTAINABLE BUSINESS MODEL

Primary Revenue (Low, Fair Fees)

1. Transaction Fees: 1%

2. Shop Platform Fee: 1%

Total Core Revenue: R9,800/month = R117,600/year

This is intentionally low - we're solving problems, not extracting profit.

SCALABLE REVENUE (Without Charging Residents/Shops More)

1. Brand Partnerships & Advertising

The Opportunity:

Revenue Model:

Featured product placement:  R10,000/month per brand
Consumer insights reports:   R25,000/quarter
Promotional campaigns:       R15,000 per campaign

Example:

Why Brands Pay:

2. Government & NGO Partnerships

The Opportunity:

Our Solution:

Revenue Model:

Government contract:         0.5% of disbursed funds
10,000 beneficiaries × R350/month = R3.5M
Platform fee: 0.5% = R17,500/month

NGO partnerships:            R25,000 setup + R10,000/month management

Impact Proof:

3. Financial Inclusion Products (Responsible)

3A. Savings Circles (Stokvels)

11.4 million South Africans participate in stokvels worth R50 billion annually.

Our Approach:

Revenue:

Social Impact:

3B. Micro-Insurance (Partnered, Not Owned)

The Problem:

Our Solution (Partnership Model):

Revenue:

Why It's Ethical:

3C. Emergency Bread Credit (VERY Limited)

The Problem:

Our Solution (Strict Limits):

Maximum loan:       R100 (enough for 5 breads)
Duration:           7 days maximum
Fee:                R5 (5% - covers admin only)
Repayment:          Automatic from next month's purchase
Default protection: Only 1 loan at a time

Why It's Responsible:

Revenue:

💰 5-YEAR FINANCIAL PROJECTION (CONSERVATIVE)

Year 1: Pilot Phase (Cape Town - 3 Townships)

Residents:                   1,000
Shops:                       50
Monthly Revenue:
- Transaction fees (1%):    R4,800
- Shop fees (1%):           R5,000
- Brand partnerships:       R30,000
Total Monthly:              R39,800
Annual Revenue:             R477,600

Operating Costs:            R300,000 (tech, staff, operations)
Net Profit:                 R177,600
Social Impact:              1,000 families with food security

Year 2: City Expansion (Cape Town + Johannesburg)

Residents:                   5,000
Shops:                       200
Monthly Revenue:
- Transaction fees:         R24,000
- Shop fees:                R20,000
- Brand partnerships:       R75,000
- Government pilot:         R17,500
- Stokvels/Insurance:       R7,500
Total Monthly:              R144,000
Annual Revenue:             R1,728,000

Operating Costs:            R900,000
Net Profit:                 R828,000
Social Impact:              5,000 families fed

Year 3: National Rollout

Residents:                   25,000
Shops:                       1,000
Annual Revenue:             R8,640,000
Operating Costs:            R4,500,000
Net Profit:                 R4,140,000
Social Impact:              25,000 families (100,000+ people)

Year 4-5: Scale + Product Expansion

Residents:                   100,000
Annual Revenue:             R35M+
Net Profit:                 R18M+
Social Impact:              100,000 families (400,000+ people)
Year Residents Shops Annual Revenue Net Profit Margin
Year 1 1,000 50 R477,600 R177,600 37%
Year 2 5,000 200 R1,728,000 R828,000 48%
Year 3 25,000 1,000 R8,640,000 R4,140,000 48%
Year 4 50,000 2,000 R17,280,000 R9,072,000 53%
Year 5 100,000 4,000 R35,000,000 R18,000,000 51%

🌟 WHY INVESTORS SHOULD FUND US

1. We're Aligned With Global Impact Investing Trends

Impact investments are estimated at $1.571 trillion in assets under management globally as of October 2024, reflecting a 21% compound annual growth rate since 2019.

Impact investors in South Africa are increasingly focused on ventures that address the country's underlying structural deficits and wicked problems.

PrePurchase checks ALL the boxes:

2. We're Financially Sustainable (Unlike NGOs)

Impact investors are primarily focused on financial competitiveness and return on their investment, but also want measurable social impact.

We deliver BOTH:

Returns for Investors:

3. We Have Built-In Moats

Network Effects:

Switching Costs:

Data Advantage:

4. Massive Market Opportunity

South Africa:

Africa Expansion:

🎯 MEASURABLE SOCIAL IMPACT

Unlike Traditional Charities, We Measure Everything:

Food Security Metrics:

Economic Impact:

Financial Inclusion:

Sample Impact Report (Year 2):

5,000

families served

20,000+

people fed daily

200

spaza shops supported

R28.8M

kept in township economy

Zero

families missed meals due to cash flow

4.8/5.0

average customer rating

🚀 GO-TO-MARKET STRATEGY

Phase 1: Pilot (Months 1-6)

Location: Langa, Khayelitsha, Gugulethu (Cape Town)

Approach:

  1. Partner with 10 trusted spaza shops
  2. Recruit 200 residents (friends & family method)
  3. Go door-to-door explaining the concept
  4. Community meetings with shop owners
  5. First month FREE (prove the value)
  6. WhatsApp groups for support

Success Metrics:

Phase 2: City Expansion (Months 7-18)

Locations: All Cape Town townships + Soweto (Johannesburg)

Approach:

  1. Success stories from pilot residents
  2. Video testimonials
  3. Shop owner referrals
  4. Partnership with taxi associations (distribution)
  5. Radio advertising (community stations)

Target:

Phase 3: National Scale (Months 19-36)

Locations: All major metros

Approach:

  1. Government partnership announcement
  2. Brand co-marketing (Albany, Sasko)
  3. Franchise model for other cities
  4. Celebrity ambassadors
  5. National media coverage

Target:

💪 COMPETITIVE ADVANTAGE

Why We'll Win:

1. We're FROM the Community

2. We're Problem-Solvers, Not Profiteers

3. We're Building Infrastructure, Not an App

4. We Have First-Mover Advantage

🤝 WHAT WE NEED FROM INVESTORS

Seed Round: R2 Million

Use of Funds:

Technology Development:     R600,000 (30%)
- Platform build
- QR code system
- Mobile apps
- Testing

Operations:                 R500,000 (25%)
- Staff (5 people)
- Office space
- Support systems

Marketing:                  R400,000 (20%)
- Community outreach
- Shop recruitment
- Brand building

Working Capital:            R300,000 (15%)
- Initial settlements to shops
- Buffer for growth

Legal/Compliance:           R200,000 (10%)
- Licenses
- Contracts
- Insurance

Investor Returns:

Equity offered:             20%
Valuation:                  R10M (pre-money)
Expected exit:              Year 5-7
Exit valuation:             R100M - R200M
Investor return:            R20M - R40M (10-20×)
IRR:                        60-80%

Plus Impact:

📊 RISK MITIGATION

Key Risks & How We Address Them:

1. Adoption Risk

2. Shop Owner Resistance

3. Technology Failures

4. Competitive Threats

5. Regulatory Changes

🌍 VISION FOR THE FUTURE

Year 1-2: Prove the Model

Year 3-4: Become Infrastructure

Year 5-7: African Expansion

Year 8-10: Exit or IPO

🎤 THE ASK

We're seeking R2 Million in seed funding to:

  1. Build technology platform
  2. Recruit 1,000 pilot families
  3. Onboard 50 spaza shops
  4. Prove unit economics
  5. Secure government contract
  6. Position for Series A

In return, you get:

Plus the satisfaction of knowing:

📞 NEXT STEPS

For Interested Investors:

  1. Review full business plan (available on request)
  2. Meet the founding team (township residents solving their own problem)
  3. Visit pilot communities (see the need firsthand)
  4. Speak with potential customers (hear their stories)
  5. Review detailed financials (5-year projections + sensitivity analysis)
  6. Due diligence (we welcome scrutiny)
  7. Investment decision (let's change lives together)

💬 CLOSING STATEMENT

PrePurchase is not a charity.

We're not asking for donations. We're not begging for handouts.

We're building a REAL business that solves REAL problems for REAL people.

We'll make money - but we'll make it ethically, sustainably, and transparently.

Impact investing prioritizes both financial returns and positive social or environmental outcomes, and that's exactly what we deliver.

Our 1% fee model proves that you don't have to exploit poor people to build a profitable company.

You can do well by doing good.

The question for investors:

Do you want to fund another app that makes rich people richer?

Or do you want to fund a platform that feeds 100,000 families while generating 60%+ IRR?

The townships are waiting.

The families are ready.

The technology exists.

All we need is capital to start.

Let's build this together.

Contact Us to Invest

📧 CONTACT

Founding Team:

Investment Deck: Available on request

Pilot Data: Available after 3-month pilot

References: Community leaders, early shop partners