Executive Summary 2023

Company Overview

Cadi is a cutting-edge logistics technology platform revolutionizing e-commerce by leveraging a network of autonomous, localized kiosks for product distribution. These strategically positioned distribution hubs offer innovative consumer experiences. Our distinct approach involves state-of-the-art product sensors observed through a network of proprietary kiosks and smart warehouses, enabling complete product traceability. The platform tracks products from sourcing to sale. This synergy empowers Cadi to provide "Try Before You Buy" experiences, granting unparalleled product access and achieving last-mile delivery in hours, not days. Our direct-to-consumer platform facilitates direct brand-consumer interactions, reshaping the digital connection between brands and consumers.

Market Opportunity

In today's ever-changing landscape, the e-commerce sector is experiencing remarkable growth, reshaping consumer purchasing habits and driving significant economic shifts. E-commerce's appeal lies in its promise of convenience and accessibility, allowing consumers to shop from the comfort of their homes. However, this transformative force has exposed the limitations of digital interactions, particularly in industries like sporting goods. For high-value, personalized, and performance-oriented products, there is a clear need for real-life product trials and in-person examinations that allow customers to establish a tangible connection with items before making a purchase commitment. Additionally, the demand for faster, more cost-effective, and personalized product delivery solutions has become increasingly evident due to high return rates.

As the direct-to-consumer model becomes more prevalent, major brands are encountering unique challenges in this digital revolution. High return rates, increased product loss, and the presence of inflexible legacy software systems often impede the potential for innovative consumer experiences. Striking a balance between the digital and physical realms is a complex undertaking, requiring a rethinking of traditional business models and the integration of cutting-edge technologies. While e-commerce continues to offer unparalleled convenience, it underscores the importance of bridging the gap between the digital and physical worlds to meet the diverse needs and preferences of today's consumers.

Business Model

Cadi is a comprehensive logistics solution catering to brands and retailers seeking to streamline their direct-to-consumer (D2C) operations. They offer integration into e-commerce platforms, charging an upfront license fee and a percentage of platform usage. Cadi excels in end-to-end logistics management, including reverse logistics, giving it a competitive edge. Additionally, Cadi operates its own secondary channel for testing and selling used products through various online platforms.

Key Differentiator

Cadi's standout feature lies in its capacity to convert underutilized or non-existent retail spaces into profitable venues through both physical and online retail experiences. Using Cadi technology, unconventional locations like golf courses, parks, events, and non-traditional retail spaces can be transformed into robust retail hubs. This technology systematically optimizes every retail site, making it well-suited for returns and seamless multi-channel distribution. This eradicates challenges such as weather limitations and fluctuations in sporting seasonality that often impede traditional retail venues. Furthermore, Cadi's exceptional ability to manage reverse logistics, including handling returns and reselling used products, is a game-changing advantage. Its individual tracking system enables sufficient allocation to multiple sales channels. By harnessing autonomous technology, Cadi can deliver products to consumers, facilitating real-life connections with products regardless of external factors.

First Industry and Go-to-Market

Cadi's initial focus is on the golf industry, a sector where traditional retail dominates, but e-commerce potential remains untapped. They have established direct relationships with major golf brands. Presently, Cadi has installations in Seattle, leveraging significant ties with the world's largest golf management company and the city of Seattle. Expanding their strategy involves four key steps:

1. Secure exclusive industry deals with TaylorMade, Callaway, and other key players.
2. Expand partnerships with Troon and its subsidiaries.
3. Select a market and commence installations, establishing a strong presence.
4. Integrate with their retail platform to unlock Cadi's logistics capabilities.

Funding Allocation

The raised funds will be strategically directed towards three key areas: advancing the technology platform, establishing the inaugural logistics market (likely within the golf industry), and strengthening the team. These investments will lead to the finalization of significant partnerships with golf equipment companies and golf course managers, marking the path to full-scale operations.

Team

Cadi's leadership team consists of industry veterans with extensive knowledge in RFID technology, warehousing tech, and e-commerce. Their collective expertise and unique vision are not only one of a kind but have played a pivotal role in Cadi's success thus far.

Traction and Milestones

Since its establishment in 2016, Cadi has remained dedicated to demonstrating the "try-before-you-buy" concept through a localized fulfillment model. During this time, Cadi introduced a digital marketplace that generated over $3 million in sales. Moreover, Cadi has demonstrated demand from golfers while cultivating relationships with key industry stakeholders. Cadi has also obtained patents and developed a unique technology stack.

Financial Projections

We anticipate our robust financial performance to maintain its upward trajectory. As we expand into new markets, each installation is expected to yield a substantial revenue boost and future earnings. Leveraging our efficient operations, expanding customer base, and the ongoing growth of digital retail trends, Cadi is well-positioned for increasing demand from potential partners, consistent revenue growth, and sustained profitability.

Risks and Competitors

Although there is no direct competition, Cadi encounters challenges from traditional retailers and industry-specific trends. In some cases, prominent players may resist adopting digital retail and stick to conventional strategies. However, Cadi's commitment to innovation, delivering added value to market leaders, and maintaining operational excellence will remain pivotal in driving our success and mitigating potential risks.

Conclusion

Cadi is reshaping the e-commerce landscape, offering a customer-centric, convenient, and empowering "try before you buy" experience. We extend an invitation to join us in revolutionizing the golf logistics industry and securing a substantial portion of the golf retail market. We eagerly look forward to the chance to delve deeper into our vision, strategy, and expansion plans. Together, we can propel Cadi to unprecedented heights and reshape the landscape of digital retail for the future.

Tyler Gottstein

CEO, Co-Founder

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Matt Ahrens

COO, Co-Founder

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