At Lukhu, we are revolutionizing sustainable fashion commerce in Africa by building digital infrastructure and offline enablement solutions that foster economic, social, and environmental sustainability. We aim to empower fashion entrepreneurs by providing them with tools and resources to manage and grow their businesses while providing consumers with a platform to discover and purchase apparel with ease. Our vision is to build the operating system of fashion commerce in Africa with a goal to empower 50 million Africans by 2030.

PROBLEM AND SOLUTION
At Lukhu, we are tackling the longstanding challenges that have hindered the African apparel market for years. Sustainability, trust, discoverability, integrated payments, and fulfilment are areas where we are making a significant impact. By empowering merchants with essential tools and resources, such as sourcing, market access, storefronts, inventory management, CRM, analytics, payments, fulfilment, and training, we enable them to effectively manage and grow their businesses. Simultaneously, we provide consumers with a seamless and enjoyable experience to discover and purchase clothing, footwear, and accessories.

One of our key focuses is on building trust and ensuring secure transactions. Our built-in wallet system fosters trust and reliability. For customers, we offer the convenience of easy refunds if they are unsatisfied with their purchases. In addition, our network of agent pick-up and drop-off points ensures efficient and affordable fulfilment, further enhancing the customer experience.

At Lukhu, sustainability is at the core of our values. We go beyond providing a marketplace and aim to promote responsible consumption and support local brands and designers. By offering a selection of ethically sourced materials and apparel, we enable designers and merchants to build profitable businesses while minimising the negative impacts of the fashion industry on the local economy, society, and environment. Our "Shop My Lukhu" campaign encourages the circulation of preloved apparel, promoting a circular economy and giving clothing a second life. Our dedication to sustainability sets us apart and resonates with the growing demand for conscious fashion choices.

MARKET SIZE
Total Addressable Market (TAM): $68.5 billion
Serviceable Available Market (SAM): $5.74 billion
Serviceable Obtainable Market (SOM): $287 million

Our focus with the SAM and SOM is Kenya first before expanding into adjacent markets in Africa. It's important to note that $165 million worth of secondhand clothing is imported into the country, ranking fourth globally. Our target is to capture 5% of the Kenyan market and generate $1.2 million in revenue by the end of 2024.

BUSINESS MODEL
We have several revenue streams to ensure long-term sustainable profitability such as:

1. On the marketplace, we charge a 10% on each item as well as $2 - $3.50 in delivery fees
2. For Merchants, we have 2 subscription services ranging between $10 and $25 per month and this provides access to our robust set of business management solutions such as storefronts, a POS Terminal, inventory management, CRM, and data analytics among others
3. We have an inbuilt wallet that provides escrow payments for our customers and we charge transaction fees on withdrawals and order payments via cards and mobile money
4. We provide designers and other merchants with stock and material sourcing solutions as well as financing that matches their turnover. This ensures that these businesses get the support they need to scale
5. Lukhu also provides merchants with other standalone services such as third-party fulfilment, content creation, and marketing initiatives both online and offline

TRACTION / MILESTONES
Since the launch of our MVP, we made remarkable strides, reflecting our strong traction and potential for growth in the market. Here are some key milestones we have achieved:

1. User Base: We have attracted over 3,700 users to our platform, demonstrating the increasing demand for sustainable fashion choices.
2. Merchant Network: Our platform has onboarded 593 merchants, showcasing a diverse range of high-quality fashion products and fostering a vibrant marketplace.
3. Transactions: With over $6,000 processed in transactions, our platform has gained the trust and confidence of both consumers and merchants.
4. Extensive Inventory: We have listed over 120,000 items on our platform, offering a wide selection of sustainable fashion options for our users.
5. Total Inventory Value: The total value of inventory on our platform exceeds $2 million, highlighting the significant scale and value we bring to the market.

These milestones underscore our commitment to revolutionising sustainable fashion commerce in Africa and empowering both consumers and merchants. As we continue to grow and expand, Lukhu is poised to make a lasting impact in the fashion industry.

LONG TERM GOALS
At Lukhu, our long-term goals are centred around empowering the African fashion industry, fostering sustainability, and driving positive change. We are dedicated to providing comprehensive business tools and support that empower fashion entrepreneurs and create an inclusive fashion ecosystem promoting economic, social, and environmental sustainability. Our mission is to enhance the fashion discovery experience for consumers and empower 50 million Africans by 2030. We are committed to making a lasting impact and transforming the African fashion landscape into a thriving and sustainable industry.

USE OF FUNDS
-Growth: 40%
-Team: 35%
-Product: 15%
-Operations: 10%

Our founding team has broad experience not only in running fashion businesses locally but also in technology, finance, and marketing at companies such as Safaricom, Jumia, and Alphafrica Asset Managers among others, giving us deep insight into both sides of the business. We build with our customers and not for them and this has enabled us to create a solid product experience for merchants and consumers alike.