Wizart enables DIY retailers to help their customers try on finishing materials in their interiors online. Wizart offers a computer vision augmented reality solution allowing real-time visualization of finishing materials by taking photos of real-life interiors while preserving photorealistic perspectives, scale and shadows
25 paying customers since operational launch in February 2020 representing 10% m/m growth. The company is at $16k in MRR, has just signed Petrovich ($50m+ rev. company) and negotiating with Leroy Merlin (#1 DIY retailer in Europe). Clients’ geography spans US, EU, UK, Central/South America, Mid East and Russia (only piloting). More than 3M photo renders made with Wizart in 2020 alone.
There are over 500k DYI manufacturers and retailers globally with $400bn annual market size, growing 4% annually. This number is surging due to COVID as market increasingly moves online and is looking for better and easier ways to sell their merchandise.
Problem or Opportunity
Problem: DIY online stores offer very poor product experience for finishing materials. Most people find it hard to imagine how a given finishing material is going to look like in their homes (“imagination gap”). The only real solution is for the store to offer shipping free or cheap samples, but this practice is costly and ineffective. This leads to the unnecessary loss in sales and a high rate of purchase returns. Wizart creates confident shopper who can take a photo of their interior and see photorealistic visualization of how it will look like at the end with new finishing materials applied, thus cutting diminishing the rate of purchase returns, shortening the transaction cycle, driving up customer engagement and satisfaction and thus increasing conversion rate and delivering a net financial gain to our clients.
Solution (product or service)
Wizart enables DIY retailers to help their customers try on finishing materials in their interiors online. Wizart offers a computer vision augmented reality solution allowing real-time visualization of finishing materials by taking photos of real-life interiors while preserving photorealistic perspectives, scale and shadows. Wizart technology helps customers visualize their interior renovation ideas by selecting new wallpapers, flooring, ceramic tiles and other finishing materials. The company sells its widget to manufacturers and retailers to integrate into their online stores and catalogues.
Right now, there is only one direct competitor to Wizart, which has not gained a substantial market share yet. Thus, we are looking to move fast, leveraging our competitive advantage of a superior neural network based computer vision technology while others use cumbersome 3D modelling or subpar computer vision variants that cannot deliver precise and photorealistic enough quality of visualization. Both alternatives are complicated for a regular user who wants to see results immediately and in the least possible number of clicks/taps.
Advantages or differentiators
Wizart is the only company that invests in creating DIY products’ catalogue from brands all over the globe to deliver directly to retailers which simplifies and makes product publishing affordable thus dramatically reducing time to market. Our unique computer vision technology is very complicated to repeat - thus we are at least 18 months forward to anyone who would like to start direct competition.
Wizart charges small retailers $1k-$5k annually and mid-market retailers $5k-$40k annually to increase the profitability of their businesses by increasing their conversions and decreasing their losses and rate of purchase returns.
B2B SaaS. Wizart charges a monthly/annual SaaS subscription.
Unit Economics: CAC $1,7k (will go down to $1,5k with scale), LTV/CAC 6.5x (will go up to 10x-12x with ARPPU and LT increase), churn 0% (sticky product which improves customers’ status quo in 100% cases), net burn rate at $35k.
Money will be spent on
70% Scaling up sales - hiring, improvement of sales channels, entering new markets (flooring, ceramic tiles). 30% product development, mostly to improve unit economics
Offer for investor
Raising $1m on an $8m post money cap SAFE in order to get to $ 2m in ARR in 18 months. $0.2m committed to date.
Political crisis happening in Belarus actually might make negative impact on team located there. Though, we took and are taking reasonable activities to decrease the risk (reincorporated and moved IP to US/Delaware, established independent cloud infrastructure and distributed team management)