Introducing Melltoo: WOMENA’s First Investment  

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We are very happy to announce today that our first investment is in Melltoo, a social network that connects buyers and sellers of secondhand goods. Morrad Irsane (CEO) and Sharene Lee (COO) launched the company in Dubai in March 2014. Already they have 85,000 downloads, 25,000 active users and daily growth of 400+ users.

Melltoo was one of the first companies to present to our members and they delivered a very impressive pitch. We asked Morrad and Sharene a few questions to learn more about Melltoo.

What was the inspiration behind Melltoo?

Hyper-consumption is a global problem. Yet, it is a problem that can be alleviated if we all just resell and reuse our things. However, there isn’t an easy way to sell the little (and even big) things in our lives that we no longer need. That’s why we built Melltoo, to provide an easier and friendlier way to sell the things in our lives that we don’t use anymore.

Melltoo is different to most other classified listings because of the deep social integration with the product. Why is this important?

Melltoo is a marketplace where people can buy and sell things. Classifieds are primarily a means to advertise something and to get leads. Melltoo, with our payment and delivery services, lets users buy and sell second hand things directly through the app, without even having to leave their homes.

The deep social integration has a purpose-to build trust in the marketplace. Being able to see users’ profiles and interacting with other users builds relationships and trust, which is the key component of a successful peer to peer marketplace.

You’ve seen some very impressive growth – why do you think Gulf residents have been so quick to embrace Melltoo?

Because we are solving a problem. People here shop a lot, move a lot, and have a lot to sell. The current options for selling their things are so cumbersome that they would rather just dump them or give them away. Because Melltoo helps Gulf residnts buy and sell easily, and in doing so solves a pain point, they have been quick to embrace the platform.

What’s next for Melltoo?

We are rolling out our payment and delivery services which should further accelerate the buying and selling process. This will be implemented one product vertical at a time. The investment secured from Womena will help us get to revenue-generation after which our series A round awaits.

How’s your experience with WOMENA been?

Our experience with WOMENA has been wonderful. Seeking investment is typically a painful and time-consuming process that diverts attention away from growing our business. With WOMENA, the process has been quick and smooth. The WOMENA team, despite being highly demanding in performing due diligence, is extremely efficient and the turnaround time was under 3 weeks. This is incredible, considering all the care that was put into the process. I can honestly say that I wish all investors did things the way WOMENA does.

To learn more about Melltoo, go to their website or download the app straight to your phone from the App Store or Google Play.

Investment Process  

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We receive numerous questions from entrepreneurs about our investment process. Hopefully this post will clarify any questions you may have about the investment process!

Application Cycle

WOMENA has one pitch meeting every month. Applications to pitch are open and ongoing.

Process

Initial Application: In order to be considered for an investment, interested entrepreneurs must fill out an application form here

Initial Review: WOMENA staff will review the company’s application and supporting documents. If we believe that the company is a good fit, the entrepreneur will be contacted by the WOMENA team via email to set up a first meeting.

First Meeting: During the first meeting/call, a conversation will be had between the entrepreneur and a WOMENA team member to further discuss the company and the business plan, including the current status and future plans of the company. If there is continued interest after this meeting, the company will proceed to initial due diligence.

Initial Due Diligence: In the initial due diligence stage, a due diligence expert from WOMENA will assess all aspects of the business plan, including market size/opportunity, competition, competitive advantage, financial projections and team members. At this stage, initial discussions regarding valuation and terms will also occur, to ensure that there is potential for an investment to be made. It is crucial that entrepreneurs are in contact with the WOMENA team at this point to answer any questions in order to move the process along quickly.

Term Sheet or Convertible Note Negotiation: After successful due diligence, WOMENA will present the company with a proposed term sheet that outlines the expected terms of the investment according to industry standards.

Pitch Preparation: Once the company has been approved to pitch and the term sheet negotiated, the entrepreneur will be asked to prepare materials for the pitch according to WOMENA templates. Upon submission of materials, a WOMENA team member will review them and schedule a call to offer edits and presentation coaching. WOMENA members will be provided with an overview of each company scheduled to present at the dinner.

Meeting Pitch: At the pitch dinner, the entrepreneur has 8 minutes to present the pitch to our entire membership, followed by 10 minutes of questions and answers. At the conclusion of the pitch, investors will be asked to indicate their interest on a survey and to list any additional questions they have.

Further Due Diligence and Commitments: Any further questions or concerns potential investors have will be addressed, with WOMENA staff acting as the intermediary between the entrepreneur and the investors. Investors will then be provided with a complete due diligence report for their review. Upon review of the document, interested investors will make a hard commitment to invest in the company.

Funding and Monitoring: Once investors have committed and all parties are satisfied with the terms of the investment, investors will transfer their investment to WOMENA SPC, the entity that will then invest in the company. A copy of the agreement will be given to investors for their records. It is expected that entrepreneurs will continue contact with WOMENA via regular reporting and updates. WOMENA and investors in the company will also be available to access for their network and other related resources.