It is building a marketplace, where travelers are provided an opportunity to earn cash from the spare space in their luggage.
Since, Anil (Co-founder) has been a constant traveller, he has carried packages, gifts, etc. for friends and family around the globe and hence is passionate about building a solution to connect travelers to people who want to send something globally. The best part about the solution is that this behavior already exists within the traveler community and Favarr will put a structure around it.
Please check out this awesome video presentation by the team to learn about them : link (~1 min)
A few core insights and reasons why we should explore investing :
- Problem being solved :
- Provide an opportunity to the travelers to earn extra cash at almost no effort/cost
- Offer an opportunity to reduce the expense/charges one would incur to get the product/ item shipped
- TAM: ~4.5 Bn Travellers [ref]
- Founding Team :
- Co-Founder (Anil Taneja) is HBS MBA grad
- Previously worked at BCG, TikTok, PwC
- Business Model
- Commission-based model, where the delivery is free but a small fee is charged for using the platform.
- Traction
- Recently, his team also won the HBS New Venture Competition New York Region Finals and is one of the 8 finalists in the Global HBS New Venture Competition.
- Already 80+ users have signed up for the waitlist organically
- Have soft commitment from investors for their pre-seed round
- Risks
- Initial network effects: It would be difficult to establish and set up the initial ball rolling and get the first users who would be willing to get the item delivered and travelers
- Trust: Since most the transactions would ideally be 'high' in value/emotion, people would tend to doubt the person who is going to get their parcel
