The profitability of allu invest, from Allugator, is 22.5% per year; there are more than 5,000 investors
The startup Allugator, specializing in renting iPhones, decided to implement an investment platform in 2020 with the aim of raising funds to purchase devices. Through allu investthe company managed to raise R$230 million in 4 years.
allu invest issues a CCB (bank credit note) in partnership with Move, which offers personalized credit services for companies. According to the investment platform, profitability is up to 22.5% per year.
The minimum investment in allu invest is R$40,000. The term is 24, 48 or 72 months. The investment is high risk. The platform has more than 5,000 investors.
The company’s COO, Pedro Sant’Anna, said that the resources invested in allu invest are directed towards the acquisition of new electronics. These, in turn, will be rented on a subscription model through Allugator.
Profit from rental operations provides the profitability of the investment platform. Investors invest their resources in electronics rentals.
“It is a private credit title. In practice, the investor is lending money to us, who are allocating money to our strategy, whose profitability will be the signature itself”the COO told Entrepreneurial Power.
iPhone rental
Allugator was founded in 2016 with the aim of becoming a marketplace in which individuals could rent items they did not use to other users who needed the product on a specific basis.
“In 2016, the platform connected users who could rent a GoPro that they hadn’t used in 2 years to another who wanted to go to the beach, who would get in touch with the GoPro owner to make a one-off rental for 30 to 60 days in maximum”he stated.
In this business model, 2/3 of leases were not finalized. According to Sant’Anna, most of the rentals were not completed because the logistics were the responsibility of the equipment owner.
After identifying this problem, Allugator changed its business model, became the owner of the rented devices and became responsible for shipping the products.
To offset the cost of shipping to other states, the company — whose headquarters are in Belo Horizonte (MG) — implemented an electronics subscription model.
“We came up with the idea of taking out subscriptions, which are long-term rentals. I would be justified in sending a camera to Roraima because the shipping would not be more expensive than the rent. My partner asked me why not do this with an iPhone?”he stated.
Subscription iPhone rentals currently represent 90% of the services provided by the company. The startup’s goal is to reduce this percentage to 70% by 2024, expanding the rental of other electronics.
There are 24,000 active subscriptions. The company has partnerships with PicPay, Acer It is Nestlé. In its catalog, there are cell phones, notebooks, games, tablets, smartwatches and coffee makers.
Allugator is evaluating future partnerships with real estate agencies so that users can rent furnished apartments through subscriptions. The idea is to serve the population that moves to another city and does not want to buy household appliances, for example.
“We are willing to sign any asset that is affordable and has relatively low depreciation”he stated.
Target Audience
Allugator’s main target audiences are: 1) negative users on Serasawho are unable to buy an iPhone in traditional retail; two) population that wants to change their iPhone annually.
According to Sant’Anna, the subscription is 45% to 50% cheaper than the retail value of the device. O iPhone 13 annual plan It costs a total of R$2,218.80, for example. The same model can be found in traditional retail for R$5,499.
“The person subscribes to have access to a higher standard good that they would not originally be able to get”said the COO.
There are 3 types of subscriptions: annual, semi-annual and quarterly. The startup is considering implementing a monthly billing system that does not compromise the card limit at the time of subscription. Currently, when the user signs up for the plan, the total subscription amount is deducted from the credit card limit, even if it is divided into 12 installments.
“We manage to approve 77% of people who want to subscribe. We avoided a credit analysis based on the user’s income and their purchasing power as the main factor in determining whether a person can sign or not. We focused on determining which criteria we could analyze to avoid fraud”he stated.
Default
To avoid fraud and default, allu has a recovery team. At the end of the contract, the user has the option to renew the plan, change the device or return the electronics. The user is considered in default when they do not return the rented product or choose to renew or change plans.
10% to 15% of users default. Of this total, 85% of devices are recovered extrajudicially. Legal proceedings are initiated after 90 days of default.
“As the device is ours, if the user defaults, he will not go to Serasa, he will go to jail for embezzlement. We can pursue him civilly and criminally.”he said.
X-RAY
- foundation: 2016;
- founders: Cadu Guerra (CEO) and Pedro Sant’Anna (COO);
- 2023 revenue: R$60 million;
- employees: 180;
- thirst: Belo Horizonte (MG);
- tax regime: real profit;
- legal nature: private limited company;
- contact:
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