Page 26 - demo Golden pond document

A2pay investment proposal 25

6.5.4. Bulk Purchasing Platform

Overview:

A2Pay’s overarching philosophy is to solve for an Informal Retailer’s main pain points and the majority of these
pain points can often be achieved through an eco-system of funding and technology. The business understands
that two requirements of the store owner and wholesaler/supplier for stock purchasing could be solved using
a technology platform with a Financial Services credit model behind it.

Understanding Requirements:

1. Store Owner:

A store owner typically spends 2 -3 hours travelling to a wholesaler in order to stock their shop. Depending on
the turnover of a store and cash flow available, the owner may need to stock their store 2 - 4 times per week.
The opportunity cost for the store owner who needs to spend time out of the store, petrol and transport to
collect stock is high, not to mention the additional risk of carrying cash. Time spent comparing pricing in order
to receive the best possible price for their stock, is also tedious and time consuming.

2. Supplier/Wholesaler:

A suppliers/wholesalers on the other hand are always trying to target more informal retailers with their stock
offering, specials and promotions in order to sell more product. However they may have limited resources to
do this adequately. Any Supplier/wholesaler who delivers stock to the store also carries the risk of collecting
cash payments.

Solving The Need – Phase 1

Given the quantity and quality of A2Pay’s data per store, A2Pay as an initial phase will set up a buying group
for Spaza Owners. This would be an internally managed system whereby the store owner places an order for
stock replenishment via their A2Pay system and prefunds the order. Some stores may qualify for an A2Pay
financial services loan and this could be used for the purchase of stock.

A2Pay sources the product at the best cost price, conducts payment to wholesaler/supplier and store owner
collects or receives a delivery.