Tagline
Transforming the way parents acquired baby and kid gear through a circular economy platform based on a rental and subscription model.
Pitch us on your solution
We live in a linear economy where we are increasingly depleting natural. In the next 20 years, we will be increasing by 3 billion new consumers, having a global population close to 10 billion inhabitants, which will generate bigger environmental, social and economic challenges. The solution to this problem is to transform the linear economy to the circular economy. We propose to develop a pioneering system starting in Chile for the use and re-use of baby and infant articles up to 5 years of age through a rental and subscription model for parents. With our solution the lifespan of the gear with an increase from 2 cycles of use to 8 cycles which will reduce by 75% the use of materials such as plastics, aluminum, and fabrics among others helping over 1 million families to get access to high-quality products with an affordable price range.
Film your elevator pitch
What is the problem you are solving?
Currently, global challenges in terms of productivity are focused on the shortage of resources and raw materials for the production of products that for decades have been developed around a linear model of production, where products are from their inception designed for short use and immediate disuse. Multinational entities such as the Ellen McArthur Foundation or Cradle to Cradle have been working to promote the change from a linear to a circular and sustainable producer thinking. As part of these institutions, as well as governmental institutions, we have been working from corporations to startups that are focused on this field to promote the integration of new models such as the lease model that replaces the purchase model. In this framework our value proposal is born, as a pioneering project in the Latin American market and in a sector that has all the necessary requirements to integrate more easily into a circular economy system such as the baby and kids accessories market.
Who are you serving?
Parents within 20-35 years old who are price sensitive but are interested in good quality of clothes for their new-born children and they are likely to be part of communities, especially of parents within their same conditions and concerns.
What is your solution?
In order to solve the problem of consumption and linear production, our proposal is to create a platform that allows, in the case of baby items, to have access to high quality products at affordable prices through an online rental and subscription model. Being a technological solution this requires as a first step to identify the technical requirements for specialized development to a case of circular economy. Being a relatively new model there is a need to make a specialized platform for the needs that has a rental and subscription model. Currently platforms and systems are made for linear consumption online (e-commerce) but not for a programmed and recurrent consumption so the challenges are even greater. As a second step, is the creation of a platform that meets the requirements to be raised as well as the creation of sensors (IoT) that are alienated to the needs. At this stage it is necessary to build from the bases a platform and sensors specialized in terms of payment, inventory management, dispatch, warranty collection, periods of use, user management, information management and customer service both during the rental process and post-leasing. As a final part of the development of the solution, is the testing stage of the platform that allows to prove that it is user-friendly and complies with the technical principles necessary to ensure the efficiency of a pioneering service in the Latin American market, as is the rental of baby items online.
Select only the most relevant.
Where is your solution team headquartered?
Santiago, ChileOur solution's stage of development:
PrototypeSelect one of the below:
New business model or processSelect the key characteristics of the population your solution serves.
In which countries do you currently operate?
In which countries will you be operating within the next year?
Select an option below:
For-ProfitHow many people work on your solution team?
We are a team of 5 serial entrepreneurs
For how many years have you been working on your solution?
1
Why are you and your team best-placed to deliver this solution?
The success as well as the difference relies on the team, we have a solid background of experts: Jose, PhD in Robotics & Supply Chain. Sebas, Master and expert on iOS and Android app development, Alejandra, UX and service designer, and I, who has the expertise in Fundraising and project management. Besides, we want to incorporate sensors, big data analytics and a traceability system through blockchain within our process to bring the best and most automative services to our users and clients.
The key success factor in this team is the fact that all of us have gain experienced from the industry over the last 4-5 years and besides our multiple projects working together we have also an entrepreneurial mindset. We have been connected to the startup world not only in Latam but also in Europe and US. I personally know and trust each of them for more than 7 years in average. The network that each of us have combined with the passion that we have for this project will enable us to succeed.
What is your business model?
Currently we have 2 business models:
- One time rental with more than 28+ products and with a retention rate of 80%, much higher than the common ecommerce platforms. In this model, we gain a profit every time an item is rented through the platform. We owned each the stock, hence we can guarantee the quality and disponibility of the items. Moreover, the products we owned are only high-quality hence they are able to be use 8 cycles more than the current use cycle (6 months in average).
- Subscription model in Books & Toys: We have over 85 subscribers in less than 3 weeks since we launch (Jun 2019). In this model the parents have a monthly subscription where they pay in average 15 USD every month for a pack of 3-4 books for their kids. The pack is specialized according the age of the kids which gives an extra value to the parents and we expect in the next 3 years stimulate in over 45% the reading to kids in the region, which currently only a half of the population has the habit to read.
What is your path to financial sustainability?
We are currently under the support of governmental funds through StartUp Chile and CORFO which is supporting us since March this year, our plan is to keep growing organically and since we are a for profit organization become financially sustentable by year 2. In the meantime, we have already evaluate to have extensions of the grant which currently we are under. With this grants we will reach over 20K more for the second half of the year (2019) that will enable us to maintain the growth we expand slowly to new pilot projects. Hence the need to complement the funding that we will have to boost the growth and foster the pilots we can create together with corporates.
Why are you applying to Solve?
This year’s edition of Solver is the perfect platform for startups like Rentivo to get the exposure and connections to strategic partners. In our case specifically, we are in the stage where we are currently working with worldwide-known partners in the circular economy field such as Ellen Macarthur Foundation through Disruptive Innovation Festival and corporates such as Latam Airlines through Latam Pass. Hence, being in the Solver will enable us to showcased the results and the impact we (startups) and big institutions can make together. Furthermore, in Solver we can start the connections and relationships with more institutions that as well as us are seeking to generate solid connections and expand the horizons of their innovation lines.
Since our platform has a diversity of ways to collaborate with corporates specially those in the line of babies or kids. We can offer to each of them the opportunity to be part of a pilot project, starting with their own employees. Those who are soon-to-be-parents can be direct benefits of our platform at Rentivo.
We know it takes more than an event to build a whole project, but certainly THIS will be the event to start shaping it. One day in a conference, maybe not so far away, we will look back and we will say: “It was in the Solver edition 2019 where we met with the company that make us to reach millions of people and benefit thousands of families with our platform.”
With what organizations would you like to partner, and how would you like to partner with them?
Primarily, we have identify 3 organizations that we can partner with:
Ebay: A mentorship program where we can connect with them to cooperate en better ways to have a higher outreach.
The United Nations Environment Programme, which currently has programs and initiatives in markets like Chile and Latin America.
CLOSED LOOP Partners: We are currently seeking for venture capital funds to start connections with and fundraise in the coming months. They have a exclusive focus on circular economy startups like us to invest.
If you would like to apply for the Innovation for Women Prize, describe how you and your team will utilize the prize to advance your solution.
It is not news that there is a gap to those women who lead tech startups compare with the total of CEOs in the world. There has been initiatives to promote women to study computer science but it is difficult to promote leadership to these particular companies. Hence, it is more effective to showcase and award those cases of women who are leading and empowered them to keep going and running the startups.
Rentivo is lead by a women and the company itself has been created thanks to a program in Chile called S-Factory StartUp Chile, made for women entrepreneurs who want to start tech startups and lead the new generation of women who wants to pursuit their dreams. In our case, we were one of the 18 teams selected in January 2019 from more than 250 applications worldwide and in July 2019 we won the 1st prize of the program in a pitch competition, award that was given by one of the most important banks of the region. Besides the recognition, the traction talks by itself, in less than 5 months we have achieved to partner with corporates, universities, governmental institutions and well as international foundations.
Overall, we have showed and hopefully inspired to more women in the region that women are also made to be good leaders in tech based companies and not only the traditional ones.
Solution Team
-
Diana Barreno CEO, Rentivo
to Top
Our Solution
Rentivo