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Retainly

Retainly - a project that creates loyalty programs and solutions for digital marketing based on Blockchain technology

Rating: 3.0

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: https://github.com/RetainlyInc
Details Description Risks Full analysis Team

Detailed review

Stage of product development
End-product - part of the functional is ready, the remaining will be presented within six months


Token description
ICO date
07.12.2017 - 15.01.2018
Token price
First week - $0,15
Second week - $0,17
Third week -$0,2
Then - $0,25
Platform
Ethereum
Blockchain
ERC20
Token distribution date
01.03.2018
Consensus method
N/A
Escrow
Yes
ICO currencies
ETH , BTC
Bounty camping
Facebook, Twitter, Bitcointalk, etc.
Markets
N/A
Token functions
Collie automatically tracks events with reference to each customer and allocates reward points. These reward points are then associated with the RETN coin that can be exchanged for cash or traded for ETH and BTC
Tokens distribution
Crowdsale (65.0%)
Pre-ICO (15.0%)
Reserve (15.0%)
Bounty (5.0%)
Risks
MARKET

Technologies of marketing automation and provision of services to increase loyalty are not new - these markets are mature enough, with a high level of competition on each of them. The leader in the marketing automation market is MailChimp, however, a comprehensive solution - a platform for increasing loyalty + marketing automation – definitely may occupy a certain niche market.

PRODUCT

It is unclear whether the implementation of blockchain technology is critical for segments of increasing loyalty and marketing automation.

BUSINESS MODEL

RETN tokens can be purchased only for ETH and BTC - this binds the RETN to the rate of cryptocurrencies; it is possible that the option of buying for fiat currencies would help hedge this risk and increase interest from large Internet businesses. Tokens will be issued only during pre-ICO and ICO, additional emissions are not planned - this, in theory, may limit the company's scaling or lead to speculative growth of tokens’ prices, not related to business development. We also think that the company should pay attention to a very promising segment of eSports.

FINANCES

Extremely high forecasted growth rates of revenue in 2020 compared to 2019 - by 430%. In addition, according to P&L report presented in WP, revenue in January 2018 will exceed the same indicator in December 2017 by 12 times. According to WP of Retainly, from January to March of 2018 the company's revenue will be about $120M, while the expected revenue for the entire fiscal year of 2018 (April 2018 - March 2019) is $126M; for 2017 (April 2017 - March 2018) - $12M – obviously there is some inconsistency or an error in the calculations. The main share of revenue will come from operations with tokens; in our opinion, an increase in the share of revenue from subscriptions and corporate contracts would help hedge some of risks and increase the interest of potential corporate clients.

TEAM

The lack of advisory from large companies - potential customers - and the developer of blockchain (which deals only with the “crypto” component). Currently, Palash Bagchi is also the director of STPL Global – it can negatively affect to Retainly’s business; the same is true for Soujanya Kurelly.

Full analysis
Market

According to MarketsandMarkets forecasts, size of the global market of software for marketing automation will increase from $3.65 billion in 2014 to $5.5 billion in 2019 (CAGR - 8.55%). In terms of geographical distribution, North America will remain the largest region, while Latin America will show the highest growth rates. The same agency has estimated amount of loyalty management market - at the end of 2016 it amounted $1.68 billion, with projection that by 2021 this figure will reach $ 4.59 billion (CAGR 2016-2021 22.2%). PRnewswire provides similar data about size of the global market of software for marketing automation, predicting that by 2023 it will reach $ 6.93 billion (CAGR - 8.5%). The Access Development portal aggregates data about loyalty segment; some figures from its site: • 81% of buyers stay loyal to the brand in case they can learn about promotions themselves if it’s necessary, and the brand does not constantly send intrusive notifications • 51% of buyers remain loyal to the brand in case they can directly choose channel to communicate • 71% of buyers would use loyalty programs more often if all transactions were conducted through a smartphone, without the need for a plastic card • 71% of consumers use loyalty programs for discounts on every purchase; 63% - for free goods • The largest sector for loyalty management is retail - the number of participants in various loyalty programs exceeds 1.6 billion.

Product

The goal of Retainly’s launch was to create solutions that cover the whole ecosystem of digital marketing: from generation of leads and increase in conversion ending increase loyalty and retention of customers. Retainly uses its proprietary machine learning technology to predict user’s behavior. The AI algorithm automatically assigns a dynamic grade based on the client's behavior and his interaction with the company. Also, AI-solution created by the company is used in its two main products: Virus - a platform for viral marketing - and Collie - a platform for creating and managing loyalty programs. The loyalty program from Collie can be easily deployed, because it works on the principle of plug&play; one more advantage is flexibility - customers can create their own events and customize individual rewards in each of them. Collie automatically tracks behavior of each user, who participating in this event, and distributes the points for reward.

Business model

Retainly platform for marketing automation was launched in May 2017 with first 320 customers signed in April. After signing 150 agreements in May, the platform grows by 72% MoM and 250 new customers join it every month. Retainly indicates 4 revenue channels (in order of decreasing share): commission/fee for using of tokens, subscription model, consulting services and corporate license. Target audience/prospective clients for Retainly: • SaaS-oriented companies - Intuit, Adobe, Slack; • fintech-services - Coinbase, Bitpay, PayPal, Stripe; • media publishers - Forbes, TNW, Inc; • eCommerce - eBay, Etsy; • marketplaces - Alibaba, TradeKey, Doba; • career/job portals - Indeed, Glassdoor, LinkedIn; • social networks - Facebook, Instagram, Twitter; • online communities - Stackoverflow, Github, Codeproject; • market leaders - Airbnb, Yandex, Google.

Finances

By the end of first fiscal year - March 31, 2018 -, Retainly's revenue will be $12M, with a margin of 22%. In subsequent periods, Retainly will grow by more than 200% YoY, while maintaining a high level of margin. The company needs $50M to implement the marketing strategy, hiring new employees and maintaining operational activities.

Team

Main faces of Retainly’s team: • Palash Bagchi - CEO/founder; more than 11 years of experience in senior positions in Infrasoft (engaged in business development), Oracle (led sales), IBM (provided interaction with major clients) and STPL Global (Director and Member of the Board); • Rajesh Pandurangan - Solution Architect; before Retainly for 13 years engaged in development in STPL Global; • Soujanya Kurelly - Marketing Manager; more than 4 years working in sales/marketing - in SleepCare and STPL Global; • Avinash Animalla - software developer; more than 3 years engaged in development; worked at Jayeesha Software and STPL Global.

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