www.qumaq.com

Business Plan

QUMAQ (Instant help!)

QUMAQ Technologies Pvt. Ltd.

31-07-2019

www.qumaq.com

www.qumaq.com

Contents:

1. Business and objectives

2. Skills and experience

3. Target customers and Projections

4. Market and competition

5. Marketing and sales plans

6. Operational plans

7. Back-up plan

8. Supporting evidence (if applicable)

www.qumaq.com

1. Business and objectives

Value Proposition: Drones are everywhere nowadays, yet they mostly rely on a pilot with a remote control. In order to operate a fleet of drones automatically, safely and cost effectively, we've developed the most affordable copter drones that are controlled using our custom automated platform, rather than relying on a pilot. By harnessing the power of our platform and custom drones we're giving you all the tools you need to start using our drones for drone deliveries, aerial pollination, surveillance & monitoring, mapping and 3D modelling and multiple other industries.

Solution: Custom Built Copter Drone Pay-load lifting multi-rotor drones Customization options include: Camera Heat Sensing 3D Mapping Thermal Sensing Radar Laser Beam Metal Detection Can be customized according to client needs. Custom Platform Our custom platform is an advanced, yet easy to use, online dashboard that brings all the tools you need to manage your fleet of drones - whether your fleet includes a single drone running within an exclusive area, or tens of drones deployed in an entire city. Advanced Routes Management - Define flight routes with unlimited smart way-points. Routes can take off and land from a single center or multiple centers. Smart Way-Points - Use actionable way-points to define different actions across routes. Land with or without recipient approval, wire release from midair, fly though points to fly between trees and other man made obstacles and more. Reports - The most detailed reports for each mission, including full telemetry data, flight play-back, server logs and flight controller reporting. Automatic Preflight - The system automatically performs a full system preflight check before approving each takeoff, verifying hardware readiness, flight route availability, weather conditions and more. Use cases

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1. Surveillance and inspection 2. Aerial Pollination and Agriculture 3. Mapping and 3D Modelling 4. Drone Deliveries 5. Law enforcement 6. Emergency Response 7. Conservation 8. Disease control 9. Maritime 10. Mining 11. Construction Management 12. Urban planning 13. Internet Access 14. Inventory Management 15. Defence

Business Model

1. Selling Custom Drones & access to platform (subscription based)

2. Providing SDK integration with Drone platform (platform as a service)

Objectives:

Short term (current year):

We want to start our operations in a limited area using at least 50 drones.

Want to expand team in different cities.

Signing MOU with few organisations.

Medium term (next 1 – 2 years):

Build customized DRONES with collaboration with Defence.

Start our services across Pakistan and Middle East.

Potential collaborations to hit the Global Market.

Long term (3 years and beyond):

One stop shop for Customize Drones.

Collaboration with Govt. to pitch cutting edge products abroad.

Collaboration with various Institutes for R&D in Drone Programs.

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Starting our own 4-5 product lines in next 3 years

Start Up Budget allocation:

We are currently looking for 0.5M USD funding to execute following tasks.

1. Budget for R&D of new prototypes & Market analysis. 2. Team Expansion up to 50 People. 3. Office Space.

2. Your skills and experience

Our Core Skills are in : • Design and operation of custom drones • Design, manufacture and operation of UAVs • Training personnel in operations and maintenance of UAV systems • Transfer of Technology (TOT) and Establishment of facility to manufacture airframes • Development and Customization of Software for Ground Control Station • Customized Auto-Pilot and Navigation systems • GPS based solutions for various civilian and defence applications • Design analysis of Air vehicle using CFD and FEA Tools Muhammad Etisam Zafar (Founder and CEO) Design Engineer, Leading all product design & development from concept to production for QUMAQ. Exploring and integrating new technologies in the product stack. Designed electronics for UAVs used for

delivery. Re Architected the avionics and power system to improve manufacturability and reliability. Muhammad Ikram Ul Haq (Tech Advisor) Engineering Manager at Lyft Inc., Seattle USA. Zeehsan Ahmed (Control Engineer) BS Electrical Engineering Muhammad Talha (Operations Manager) BS Software Engineering Hamza Ghani (Electrical Engineer) BS Electrical Engineering Talha Khalid (Tech Lead) BS Computer Science

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Saif Khawaja (Software Engineer) BS Computer Science Muhammad Shabbar Ul Islam (Software Engineer) BS Computer Science Salman Mehmood (Data Science Engineer) BS Computer Science Tariq Jarral (Designer)

Any education or training you have had that is relevant to your business:

-Business Graduate from National Incubation Centre, Islamabad, Pakistan. - Part of VEON accelerator program named Jazz XLR8

Gaps in your skills, experience or qualifications and explain how you will address these:

We believe that we have strong team with complementary skills but still we seek help in legal & financial matters from an advisor & trying to fill this gap as soon as possible by hiring a permanent resource.

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3.Target customers and Projections

Demographic details: Delete any answers not applicable to you and provide some description as relevant.

Business Types Enterprise Type Target regions:

B2C Agriculture Weddings Events Functions Conferences Surveillance Oil and gas

Farmer

Wedding Marquee owner

Traveller

NGOs

Petroleum companies

Offices

Country Wide 50-60%)

International

Briefly describe your target customers and any other distinguishing features, expanding on any of the areas you have already highlighted above:

Media: - Any Enterprise spends time to attend start-up conferences, invests in R&D and follows activities of incubators and accelerators over social media.

Interests – Any business try to automate processes to enhance the productivity of team and prefer ease of use.

Location – Usually businesses in semi urban or remote areas thrive and willing to adopt technology to overcome their day to day challenges and willing to create a safe environment for their employees and make their work life much less stressful.

What customer need or problem do your product(s) and/or service(s) address?

Ans. There are couple problems which our potential might consider to solve.

i. Drones can operate in dangerous environments and ensure safety. ii. Drones are cost effective solution. iii. Drones can give you 360 View of any area without human involvement. iv. Drones can optimize and make processes more efficient.

Financial Projects and Pricing:

www.qumaq.com

Financial Projections

Start-up-Funding

The start-up cost will be PKR 79,900,000 ($500,000), which will consist of the first 50 drones and the start-up

cash required to run the company.

START-UP-FUNDING Start-up Assets to Fund (50 * 8997.74) 449,887.35USD

Start-up Expenses to Fund 50,112.64USD

Total Funding Required 499,999.99USD

Assets: PKR

Non-Cash Assets Acquired 449,887.36USD

Cash required for Start-up 50,112.64USD

Cash Balance on Starting Date 499,999.99USD

Total Assets 499,999.99USD

Investment Offering Rate of return for our investors will be 15% on residual profit every year. Further information will be provided on the Investment Offering table. Key Assumptions Worst Case Scenario:

15 Drones dispatched.

8 Drone Flights every business day.

Best Case Scenario: 50 Drones dispatched.

12 Drone Flights every business day.

Average Case Scenario: 42 Drones dispatched.

10 Drone Flights hours every business day.

Key Financial Indicators

Competitor’s Data

Market Analysis

Operational Points

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The vehicle can be operated for 15 hours straight. Charge will be according to the flights of the vehicle. Each flight will be 12.5 USD, and further charges will be 12.5 USD per hour.

www.qumaq.com

4. Your market and competition

What research have you conducted to understand your market, including your industry, regions, customers, competitors?

Surveys & questionnaires

Focus groups

Interviews of Professionals

Desk or online research

Market testing

Trade fairs or exhibitions

Met with suppliers

Personal experience

Social media research

Mystery shopping competitors

Family and friends

Local Market Competitor:

Name, location, website: Average prices:

SATUMA Union Council Road, Sihala, Islamabad, 44000, Pakistan. http://satuma.com.pk/

1. Not Mentioned

Strengths: Weaknesses:

Strong Infrastructure

Large Unmanned Aerial Vehicles

Defence related Projects only

More Fixed plane expertise

Not Commercially available

International Market Competitor :

Name, location, website: Average prices:

www.qumaq.com

Aventics Singapore & Malaysia https://www.avetics.com/

9000-20,000 $

Strengths: Weaknesses:

Agriculture

Inspection

Photography

Dependent upon DJI drone infrastructure.

Your business:

What sets your business apart from your competitors?

Our Core is customizable and upgradeable software with unique out design which make us stand ahead of a competition.

Your strengths: Your weaknesses:

Customizable & upgradable software platform.

Latest controls

Custom hardware according to the need.

Approved from Civil Aviation

Small Team

Limited Funds

Current or future opportunities: Current or future threats:

First Mover advantage in Pakistan

Pace of Global adaption for drones is very fast

Legal compliance

Hardware limitations

www.qumaq.com

5. Your sales and marketing plans

How do you or will you promote your business?

Website (information only)

Website (for e-commerce)

Advertising (online)

Advertising (print, radio, TV)

Search engine marketing

Social media

Retail outlets

Telesales

Referrals

Leaflets

Events and exhibitions

PR

Word of Mouth

Pick three of your key promotional activities and describe how they currently (or will in the future) help you meet your business objectives:

1. Online Social Media Advertisement to target businesses related to surveying, entertainment, delivery.

2. Target Customers through referrals & discounts.

3. Publicity Stunts to make people talk about drones and their capabilities and share their experience with peers.

www.qumaq.com

6. Your operational plans

Please provide details of two key suppliers or key relationships that are or will be important to running your business:

Supplier / Relationship:

Organisation: Relationship status:

Shenzhen Boway Technology. Shenzhen Ready to Fly.

commitment

Project-based arrangement

Contract or retainer in place

Service provided: Key terms of the relationship:

Hardware Parts Supplier

Hardware part supply in bulks. Alteration can be done on the basis of requirement.

Other operational considerations:

Do you currently employ staff?

Yes

A. How many staff do you currently employ?

Full time: Electrical Engineer Design Engineer Marketing Staff Software Engineer

Part time: Front End Designer Control Engineer

B. How many staff do you intend to take on in the next 12-months?

Full time: 16

Part time: 04

What laws or regulations have you considered for your business and/or industry?

Qumaq Technologies Pvt. Ltd. comes under SECP Laws for Companies Act 1997.

What insurance do you currently have in place or do you intend to put in place for your business?

www.qumaq.com

1. Cargo in Transit Insurance 2. Warehouse insurance for inventory items (Fire & Theft)

7. Back-up plan

How will you manage your loan repayments if your business doesn’t go according to plan? Your back-up plan should highlight:

What your loan repayments are

How you would manage these repayments in the case of an unexpected event

Why you feel this is a realistic plan

1. We have shifted the risk to consumer by declaring the hardware as assets for the client. 2. 50% payments would be refundable. 3. 20% margin of Profit would be paid after successful deployment of Project. 4. We always can negotiate with the Client and it can vary situation to situation. 5. All the legal Bindings would help to create the Trust between Party A and Party B.

How will you scale a smart community?

-The average 444 acres of agriculture farm frankly just takes time to monitor and check on.

- In Oil and Gas industry, the main methods of inspecting far furlong areas require shutting

down operations, setting rope lines, and sending an inspector into risky areas with a camera.

-Industries owners oversee thousands of censorious processes, while constantly facing

operational warnings such as equipment failure, security violations and disasters.

At Qumaq we have developed an end-to-end autonomous drone solution which is Eco

friendly that addresses the multi-dimensional needs for industries i.e. Farming, Oil and gas

and Industrial facilities and first-aid. The autonomous solution ensure continuous

productivity, safety and efficiency without causing human errors and operation downtime.

Any other information that you would like to share

Among all the projects I led till now, the most fascinating project is Qumaq. One of the

hardest things in life is to create something of your own. It's like raising a child. You invest a

lot of time and effort over a course of several years without anything in return. If you've done

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your job right, your child will grow as a responsible human being, capable of taking care of

himself/herself, and hopefully yours at some point. This was the main philosophy behind

founding Qumaq. At Qumaq, I am leading all product design & development from concept to

production, exploring and integrating new technologies in the product stack and designed

electronics for unmanned autonomous vehicles. Qumaq is Pakistan's first start-up to provide

drone technology and on-demand aerial delivery system in remote areas where access through

roads is a challenge. We are aiming to provide our drone technology platform as a service to

healthcare and logistics companies and help in saving countless precious lives in the time of

crisis.