The goal is to spruce up the first customers through sales from July 2024 and bring the first baby carriages to market. Specifically, they expect to be present in 7 cities, 6 mobility hubs and 7 leisure parks by the end of 2024. 

Based on the first customers, they aim to achieve a turnover of 246,000 euros by the end of 2024. 

Strollo's baby carriages will be available in the most common places in cities (near hotspots, tourist attractions...), at mobility hubs (near public transport, car parks...) and finally also in zoos, amusement parks etcetera. In this way, Strollo creates space on buses, streetcars, trains and in the car boot.
 

 
Based on the above customer types as well as direct costs, the pricing model is formulated. There are four types of direct costs associated with baby carriage production: material costs, assembly costs, maintenance costs and repair costs. External parties are used for assembly, maintenance as well as repairs. 

Customers can choose from two formulas:

Formula One:

- Customers initially purchase the hardware and stroller. 
- A fixed monthly maintenance fee is charged.
- In addition, a commission is charged on rental revenue generated through the rental platform.

Formula two:

- Customers choose an all-in lease option, where the stroller and hardware are not purchased, but leased.
- This formula also includes maintenance of the stroller and hardware
- Again, a commission is charged on the rental income generated through the rental platform.

In addition, with both formulas, customers have the choice of making their payments monthly or annually. Annual payments are subject to a discount.

The table above illustrates the two "pricing formulas" offered to our customers. 

P&L projection

The above P&L projections provide detailed insights into the financial performance of Strollo 2024-2028. The second one outlines a further expansion, allowing you to identify which distribution channel generates the most revenue. Additionally, it includes an overview of the evolution of the cost of sales. 

The graph above illustrates the projected evolution of the number of strollers in the market throught to 2028 across the three client types. By the end of 2028, we anticipate having approximately 6.000 strollers in circulation.

Overall, the majority of these strollers will be available within the leisure segment.

Cash flow projection

During 2025, cash flow reaches a low point in the amount of €384,071. However, as illustrated on the graph below, Strollo becomes profitable as early as the end of 2025. 

Balance sheet projection

To make this story a reality, there is a concrete financing requirement of 384.071 euros. 

- 21% sales FTE: Recruitment of a sales FTE who will have a crucial role in the go-2-market
- 14% working capital: purchase of equipment baby carriages, manufacturing buggies ... 
- 17% marketing and creation of visibility and brand awareness (exposure) 
- 14% digital lock: development costs for the digital lock amount to 50,000 euros. 

- 28% other team: operational cost 

The Discounted Cash Flow (DCF) method is a valuation approach used to estimate the value of an investment based on its expected future cash flows. This method involves projecting the future cash flows and then discounting them back to their present value using a discount rate that reflects the risk of those cash flows. The DCF method is widely used in finance because it provides a detailed and comprehensive valuation that takes into account the time value of money.

Based on the above financial plan, we have conducted a DCF valuation. Through this analysis, we have derived an enterprise value of €948,535. By subtracting the net financial debt, we arrive at a pre-money equity value of €752,000.