Innovating in the Agriculture Sharing Economy July 2020 - - - PowerPoint PPT Presentation

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Innovating in the Agriculture Sharing Economy

July 2020

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Challenges

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Smallholders.

Over a billion smallholder farmers are in need of mechanized services to drive agricultural productivity, increase land under cultivation and close the yield gap. Tractor ownership is uneconomical in these smallholder environments with less than 2 hectares.

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Wasted Money

Manual labor 2.5x more expensive than tractor service

Wasted Time

Manual labor 40x slower, leading to planting delays

• f up to 30 days

Loss Yields

50% of Africa’s yield gap can be attributed to a lack of mechanization

Hello Farmers

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1 2 3

Fragmented Markets

Lack of farmer coordination across the last mile

Lack of Oversight

Fraud and misuse of assets by tractor operators

Poor After-Sales Support

Scarcity of technicians and parts

Hello Contractors

Tractor Owners.

Over 20 million tractor owners are in need of technology to profitably service farmer demand. Tractors in emerging markets are overwhelmingly sold to contractors who purchase low-hp equipment with no technology to address their unique challenges.

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Hello Problem

Rural Power Gap.

Rapid urbanization, aging farm populations, and other demographic shifts are increasing the need for tractor investments, but contractors must see it as a worthy investment.

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6.5 8.0 81.8 128.0 200.0 256.8 Nigeria Africa China India Global Average United States

Tractors per 100Km2 of Arable Land

Nigeria has 750K tractor deficit

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Agri-Sharing Solutions

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Hello Solution

Unifying an Ecosystem.

Hello tractor is connecting a global marketplace at local levels crowding in IoT technology that integrates critical links of the tractor service supply chain.

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Hello Products

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Telematics Device

Hardware to connect, protect, and track tractor fleets Device Price: $110

Tractor Contractor Application

SaaS to manage equipment,

• perators, and farmer bookings

Annual Price: $200

Tractor Booking Application

SaaS to book services from connected tractors Transaction Fee: 5%

Enterprise Applications

SaaS for banks and customized solutions Price: Bespoke TRACK MANAGE CONNECT CUSTOMIZE & GROW

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Growth in Phases

The Growth Flywheel.

Working with existing tractor owners to optimize the productivity of their assets, we help unleash pent-up demand, increase transparency and quality service delivery and unlock liquidity needed to finance additional tractors into more markets.

• 1. Grow Tractor Supply

Engage existing tractor supply in markets by offering tools for tractor

• wners to optimize their equipment
• 2. Learn & Improve Service

Greater efficiency leads to decreased wait times for farmers and tractor

• wners, improve service quality &

higher levels of reliability

• 3. Grow Farmer Demand

Reliability attracts more farmers into the marketplace demanding services

• 4. Improve Profits

More farmers means busier routes and more profits for tractor owners and booking agents

• 5. Grow Tractor Supply

As profits grow, tractors become more attractive, leading to more investments and flexible financing

Mechanisation Sustainability Model

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Train booking agent and contractor on booking farmers and on Hello Tractor technology 12

Transactional Process Flow

Agent & contractor identify and market to farmers for pre-booked jobs, using HT playbook Technology assess quality of pre-booked jobs and creates optimal tractor route Contractor services jobs and is paid balance upon work completion Contractor Booking agent collects down-payments on pre- booked jobs Contractor buys device and fits it onto their existing tractor fleet Contractor buys (or finances) a tractor, with

• ur tech pre-fitted, from a

certified dealer Contractor repays tractor loan while making profit and farmers have lower costs and higher yields

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The insights we gain from the data Hello Tractor collects allow for better planningand improved

• utcomes – for us and the

farmers we workwith. – Von Kemedi,Alluvial

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Our Company

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Company Snapshot

Industry Leadership.

We are a global leader in tech enabled tractor contracting services. With a lean approach, we look to continue this success, expand our offerings, and grow into new markets.

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2015

Launched Operations

26

Employees

24

Tractor dealer customers

13

Countries

6

Finance Customers

2

Tractor Manufacturers

1.2M+

Acres under Mechanization

3,000+

Tractors on Platform

40%

Year/Year Revenue Growth

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Thank You!

Folu Okunade Email: folu@hellotractor.com