ZAMii

ZAMii

Early Stage

Cleaning Americas Carpets & Upholstery

Cleaning Americas Carpets & Upholstery

Overview

Raised to Date: Raised: $0

Total Commitments ($USD)

Platform

Razitall

Start Date

01/01/2020

Close Date

08/20/2020

Min. Goal
$150,000
Max. Goal
$250,000
Min. Investment

$75

Security Type

CAFES

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Valuation Cap

$450,000

Discount

0%

Rolling Commitments ($USD)

Status
Not Funded
Reporting Date

08/22/2020

Days Remaining
Not Funded
% of Min. Goal
Not Funded
% of Max. Goal
Not Funded
Likelihood of Max
Not Funded
Avg. Daily Raise

$0

Momentum
Not Funded
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Year Founded

2018

Industry

Consumer Products, Goods & Services

Tech Sector

Non-Tech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

Low

Location

Tucson, Arizona

Business Type

Life Style

ZAMii Clean, with a current valuation of $0.6 million, is raising funds on Razitall. The company offers carpet and upholstery cleaning services to homes, offices, and apartment complexes. ZAMii Clean has multiple mobile-carpeteer vans that reach the location and clean rugs, sofas, carpets, and upholstery. The company was founded by Dale Galbraith, a value-driven entrepreneur. The proceeds of the current round of crowdfunding, with a target raise of $150,000, will be used to expand the business, add up to 30 additional vans, and hiring. ZAMii Clean plans to create sustainable and consistent revenue streams through heavy marketing and extensive growth.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$0

$0

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$0

$0

Accounts Receivable

$0

$0

Total Assets

$0

$0

Short-Term Debt

$0

$0

Long-Term Debt

$0

$0

Total Liabilities

$0

$0

Financials as of: 01/01/2020
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Analyst Report Analyst Report Methodology Article

Summary

As of 1/7/2018, $175 has been raised of the $250K max

We begin the year with our review of ZAMii Clean Carpet & Upholstery Cleaning. The company is a new entrant in the already mature market of carpet and upholstery cleaning, a $3.75 billion market. However, it does have plans to brighten up the dull business with its vision, sports theme, and humorous vibe. The expansion strategy of ZAMii foresees addition of up to 30 more vans throughout the upper west USA and Canada within year two of operation.

 

ZAMii Clean is a full-service carpet and upholstery cleaning company for homes and offices. It offers environment-friendly cleaning solutions to meet consumer demand.

 

Though the valuation for the business is reasonable at $600K, we still have concerns about the level of upside this business can provide to the investors.

 

The most significant reason we have concerns around upside is that the industry it has chosen to enter, the mobile carpet cleaning business, is a mature industry and is saturated with hundreds of players ranging from small to large.

 

Some of the major competitors in the industry include Stanley Steamer, Clean USA, Steamatic, and The Steam Team, among others. These players have been in the market for decades and have a well-established reputation and clientele. Winning in such a crowded market can prove challenging and costly.

 

Below we review the major drawbacks of the company to understand why we have concerns regarding high return exits for investors.

 

ZAMii Clean: Raising on Razitall

Next Section: Other

Oviewview

1. Low-Growth Market

The carpet and upholstery cleaning industry is highly competitive. It is a mature industry with notable barriers to entry for the new players. The industry is saturated with numerous mom and pop entities that have dominated the landscape for decades and constitute about 75% of the mobile carpet cleaning business. The remaining 25% of the industry comprises of large firms that are difficult to compete with.

 

ZAMii believes that entering the industry with their multi-truck model is achievable and worthwhile. What’s more, with a franchise model, this could be a relatively efficient way to establish and grow the business nationally.

 

However, franchisees need to understand the value proposition of investing in a new business. With so many competitors, it might prove challenging to convince new business owners to open up in new locations. This could hamper the company before it even leaves the gate.

 

2. Minimal Product Differentiation

 

ZAMii does have the disadvantage of being in a mature and dull market. At the same time, the company has not worked much towards creating product differentiation. A clean carpet is a clean carpet and there has been no mention of technological innovation, just an enthusiasm for marketing.

There are players in similar industries like dry-cleaning (e.g., Rinse) that are reinventing the customer experience from end-to-end to reflect our tech-enabled lives, and are breathing new life into age old industries. They are raising millions of dollars and using them to develop trendy new businesses to break the monotony of the industry. The same is possible with the carpet cleaning industry as well, however, ZAMii does not appear to be the one heralding these changes.

 

3. Lack of Operating History and Investment

 

ZAMii does not have an operating history with $0 in revenues recorded on their Form C for 2018 after having been founded in 2018.

 

The management and founders do have a solid corporate structure and a good business strategy, however, due to the lack of experience in the same industry, the expectations may not be met.

 

Regarding financials, ZAMii has only been able to receive $1,725 as investment from its founders. It has not been able to generate any revenues to date and the operating expenses have overpowered the investment. All in all, the company has negative cash flows that are not expected to convert to positive for the foreseeable future.

 

4. Pricing constraints

 

Since ZAMii intends to enter a mature market (carpet cleaning has been around as long as carpet itself), there are many pricing constraints as well. There is little room to increase prices and cost cutting in order to gain an edge seems unlikely due to the already low margins of the industry.

 

The company is seeking to avoid this dynamic by going with a franchise-based business model. But that simply passes the buck onto ZAMii’s franchise partners. We are left to wonder what’s in it for the prospective franchisee?

 

The lack of excess-profit potential could make it such that ZAMii fails to garner significant interest from a broad audience of potential owners. Needless to say such a model is unsustainable unless franchisee’s are thriving.

Next Section: Rating

Rating

Underweight Deal

Due to the slow-growth and saturation of ZAMii’s chosen market, lack of a competitive advantage, and little-to-no business track record we are assigning ZAMii an Underweight rating.

We also have concerns regarding the fact that the founder seems to have multiple businesses he is running at the same time, as can be seen on his LinkedIn Profile.

Even if the company becomes able to achieve the kind of brand recognition we think will be needed for success, pricing challenges may act as deterrents to generating high profits in the long term. That’s just the nature of economic competition.

If you have any questions regarding the underweight rating of ZAMii Clean, you can reach us at hello@kingscrowd.com.

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ZAMii on Razitall
Platform: Razitall
Security Type: CAFES
Valuation: $450,000

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