Covid-19 recovery capital breakdown
Growing a Fashion Technology company from scratch requires many things, from products a user needs, establishing stable distribution, quality manufacturing, dedicated teams, skills, and talents but most importantly, the funds required to run it. While we were hit challenges from all angles during the Covid-19 phase, our funds are what hurt us the most. It is very important to us that you can see exactly what we are doing as your trust and confidence in us it utmost valuable.
Initial fundraising of $250k through pre-orders and alternative fundings via creator economy :
Current Stage : Recovery
Cost of Goods - Stocking upfront with an acceptable inventory allowance that will minimise wastage and and reduce import cost.
Supply Chain Replacement - Soles and fabrics locally sourced to be imported due to numerous industry player business closures.
Manufacturing setup - Transitioning from outsource shoemakers to own manufacturing, with in-house shoemakers and supporting labour forces to be able to provide job and health security within the SOP allowed. This prevents lock-downs, various variant threats and ensures stable continuity in production.
Sales and Distribution Expansion in North America - as 70% of our sales is from the US and Canada, we will be focusing heavily setting up distribution and storage for faster turn around time.
Backlog clearance - Numerous financial backlogs to be cleared, debts honoured and cash flow smoothness is ensured.
R&D for Interchangeable Heels - Goal will be to continually create robust shoes with variety in selection, get strong intellectual propriety going as well as increase the design space.
Buffer - For the various unexpected that has continually surprised us through the Covid-19 pandemic and most likely will continually do so.
Next stage - Pre-Series A
Headquarters -US, Manufacturing - Malaysia and new frontiers. Co-founder and team establishment and Pre-Series A funding.
1. Distribution Expansion for Interchangeable Heels
2. Stable Manufacturing
3. R&D for Wearable Technology
Mestrae will grow from a shoe company to a tech company, expanding its portfolio to wearable technology. We will be share more as we progress.
Special thanks to the grad team from Imperial College, the UK who went into detail on Mestrae's growth and developed a build-up plan.