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DriveSmart Indias First Online Driving School

DriveSmart is envisioned as the Uber of driving schools, would be in service segment as both B2B and B2C company.

Business Report mentioned after the working.

Accounting sheet with Balance sheet is attached herewith

Expense Report

Net yearly
TYPE Monthly Rentals Category No. of months Expenses
Company office space 25,000.00 Infrastructure 12 3,00,000.00
Software dev/Testing
guy 35,000.00 Resources 12 4,20,000.00
Human Resource 20,000.00 Resources 12 2,40,000.00
Digital Marketing 10,000.00 Marketing 12 1,20,000.00
Corporate Trainer 30,000.00 Resources 12 3,60,000.00
One time
AWS 1,50,000.00 Technical Assistance payment 1,50,000.00
10,000 per person/ Day to day operational
Travel expenses yr charges 10 1,00,000.00
Laptops Number of Laptops Assets Cost of 1 laptop
10 55000 5,50,000.00
Company Registration 70,000.00
Product Launch Event 60,000.00
Total Expenditure 23,70,000.00

Initial Investment of Rs 300000 from 7 Partners = 2100000


Loan from ICICI Bank = 270000

Business to Customer(Revenue)

Mont No. of applicants Per Amount payable for 10 Total 10% Share of Profit Per
h Month driving lessions per person Revenue Smart Drive Month

Aug-
1 4,000.00 4,000.00 400.00 400.00
17
Sep-
2 4,000.00 8,000.00 800.00 800.00
17
Oct-17 10 4,000.00 40,000.00 4,000.00 4,000.00
Nov-
20 4,000.00 80,000.00 8,000.00 8,000.00
17
Dec-
25 4,000.00 10,000.00 10,000.00
17 1,00,000.00

Jan-18 30 4,000.00 12,000.00 12,000.00
1,20,000.00
Feb-
30 4,000.00 12,000.00 12,000.00
18 1,20,000.00
Mar-
150 4,000.00 60,000.00 60,000.00
18 6,00,000.00
Apr-
200 4,000.00 80,000.00 80,000.00
18 8,00,000.00
May-
300 4,000.00
18 12,00,000.00 1,20,000.00 1,20,000.00

Jun-18 500 4,000.00
20,00,000.00 2,00,000.00 2,00,000.00

Jul-18 700 4,000.00
28,00,000.00 2,80,000.00 2,80,000.00

Total Pofits at the end of 1st year of launch of web services of Smart drive 7,87,200.00

Business to Business (Revenue)


Total
Mont 10% Share of Profit Per
No. of Drivers Deployed Amount Paid to Drivers Revenue per
h Smart Drive Month
Month
Nov-
17 50 7,50,000.00 75,000.00 8,25,000.00 75,000.00
Dec-
17 65 9,75,000.00 97,500.00 10,72,500.00 97,500.00

Jan-18 75 11,25,000.00 1,12,500.00 12,37,500.00 1,12,500.00
Feb-
18 90 13,50,000.00 1,35,000.00 14,85,000.00 1,35,000.00
Mar-
18 110 16,50,000.00 1,65,000.00 18,15,000.00 1,65,000.00
Apr-
18 125 18,75,000.00 1,87,500.00 20,62,500.00 1,87,500.00
May-
18 140 21,00,000.00 2,10,000.00 23,10,000.00 2,10,000.00

Jun-18 160 24,00,000.00 2,40,000.00 26,40,000.00 2,40,000.00

Jul-18 180 27,00,000.00 2,70,000.00 29,70,000.00 2,70,000.00
Aug-
18 200 30,00,000.00 3,00,000.00 33,00,000.00 3,00,000.00
Sep-
18 220 33,00,000.00 3,30,000.00 36,30,000.00 3,30,000.00

Oct-18 250 37,50,000.00 3,75,000.00 41,25,000.00 3,75,000.00

Total Pofits at the end of 1st year of launch of web services of 24,97,500.0
Smart drive 0


32,84,700.0
Total revenue from both segments 0
Assets Expenses Inflow Total revenue in a year

550000(Laptop) 18,20,000.00 270000 (Bank's Loan) 32,84,700.00
2100000 (Owner's
Equity)
23,70,000.00

Total Profit = Revenue -


Expenses
Inflow= Outflow
expense+Assets 14,64,700.00

With this Profit, Liability (Bank's


loan) is Paid off, then remaining
Profit
11,94,700.00

Business Report:
1. Why the Need? :-

a) Whenever someone buys a new car or else thinks of learning driving in general, he heads to his friends
and relatives for advice on good driving schools nearby. Most of the times, one has to return with very
few good suggestions, as in times gone by most of the people used to learn driving from their family and
friends, but in todays fast paced era nobody have that much time to devote in teaching someone- how
to drive.
b) What is the main pain point for all the cab aggregators and company cab supervisors The need of well-
trained drivers who not only know driving lawfully but are also well-mannered with good corporate
etiquettes. The sole reason that your driver is your face of the company who actually deals with
customers, necessities it that the driver should know how to deal with clients, speak English fairly well
and be a little tech-savvy.

2. Business Idea:- This is where we pitch in DriveSmart as a solution. We will be a B2C and B2B company with
following services :-

I. B2C Solutions:-

We would have an online portal, android and iOS app which would list down all the available driving
school partners in the city and their offerings. The customer would put a booking request on portal with
his name, number, address and preferred time slot. We will then route this information to all the driving
school nearby to clients location and an algorithm would choose the best offer among them. The
chosen offer would be pitched to the customer who them makes a payment on our portal.

Driving school ratings would be based on customer feedback and that will be a iterative process.

Along with driving classes, we would also provide all the RTO services like learners licence, driving
licence, RC, updation of address/ other details in DL or RC etc.
Partnership model with driving schools:- In return of 200-300% increase in driving schools business by
registering them on our portal and giving them reach to the online world, we would charge 10% commission on each
booking, plus we would have an advertising space on the back panel of the car.

Monetizing model from this segment of solution would be 10% commission on each booking , earnings from
Advertising space that would be shared 50-50.

II. B2B Solutions:-

B2B solutions include a vision to develop talent pool for the cab aggregators, Logistic companies and
corporates. This is our real bread and butter. One of the solutions would be to tie up car retailers who
would suggest our name to all the new car buyers who need driving lessons from the best and most
affordable training school.

For cab aggregators, we intend to provide 2 solutions.

a) Train their already employed drivers on soft skills like effectively dealing with client, tech knowledge,
English know-how and business etiquettes so that Ola and Uber customers can have best in class
experience.
b) Provide a talent pool of trained drivers in both driving skills and soft skills, over a period of time to
Hotels, Logistic companies like BlueDart and packers and movers like Aggarwals, cab aggregators and
company cab supervisors.
This will help Ola and Uber to retain their brand image and avoid embarrassing incident of customers
altercations or molestations.

3. The Social Impact: This start-up will be a job generator for all those who left studies at secondary classes
and are not eligible for other jobs. A second innings for ex-servicemen which would give them a chance to
earn good money with a less demanding job.

4. Marketing and Promotional Strategy :- First focus would be social media and digital marketing, we would be
running contests and quiz before 1st day launch.

After launch, marketing would be piggybacking on social initiatives like creating awareness about traffic
rules, Road manners among citizens. So once a week, we would gather around some of the busy squares of
the city with message Placards (inspired by DriveSmart) . Same would be shared time to time on
DriveSmarts twitter handle , quora and Facebook account. Blog would be an integral part of our story to the
world.

Taking a leaf out of Housings marketing, we would distribute winter/rainy jackets to Bangalore Traffic Police
as a social initiative with a small DriveSmarts logo. DriveSmart cares about citys traffic. This will be done
after 5 months of operations when we have some revenue to spend.

To scale up first quarter bookings in B2C segment, we plan to tie up with restaurants and Lifestyle service
providers to give out promotional coupons to first 500 customers.

Old school marketing with pamphlets in first 2-3 months of operations and promotional flyers at malls and
car dealerships.

Marketing costs : Digital and Social media marketing included in sheet.

Blogs and social initiatives at busy squares would be handled by interns guided by one of
the founders Interns will be paid with free trainings from one the founder IT guy.

Winter Jackets 500*1000 = INR 5,00,000


Pamphlets INR 25000

Accounting
Sheet_Smart Drive.xlsx
Accounting sheet with Balance sheet is attached herewith