APPZCART  /  Investor Handbook
CHAPTER 03 · FINANCIALS

The numbers.

The 3-year P&L, the bottoms-up model behind it, sensitivity scenarios, valuation justification, dilution roadmap, and the execution timeline that gets us to Series A.

05 — FINANCIALS

The math behind the story.

3-year projection
MetricYear 1Year 2Year 3
Paying users10,00050,0005,00,000
ARPU (₹/month)₹250₹275₹300
MRR (end of year)₹25 L₹1.37 Cr₹15 Cr
ARR run-rate₹3 Cr₹16.5 Cr₹180 Cr
Monthly burn₹25 L₹40 L₹1.2 Cr
Cities live2 (Tier 2)7 (Tier 2 + 1 Tier 1)10+ cities
Gross margin55%68%75%
CAC payback3 months2.5 months2 months
Retention (90-day)60%65%70%
Revenue streams liveSubscriptionSubscription + API + DoctorAll 4 (+ Insurance)
StatusSeed-fundedBreakeven on unit economicsSeries A · Profitable
SEED ROUND

₹5 Crore

Targeting tier-1 VCs (Sequoia, Accel, Lightspeed) and product-savvy angels from Microsoft/ServiceNow networks. Close in 90 days.

SERIES A TARGET

₹15–25 Crore

Month 18 raise on traction: 50,000 paying users, breakeven unit economics, multi-stream revenue, ABHA integration live.

RUNWAY

18–20 months

₹5 Cr at ₹25 L/month burn = 20 months runway. Buffer for unforeseen and aggressive city expansion.

13 — FINANCIAL DEPTH

Bottoms-up. Defensible math.

What the financial model actually contains
BOTTOMS-UP MODEL

Built from CAC, conversion, ARPU, churn

Inputs: monthly marketing spend per pillar, conversion rate per channel, free-to-paid conversion %, ARPU by tier, monthly churn. Drives: paying users, MRR, ARR, gross margin, cash burn, runway — month-by-month for 36 months.

SENSITIVITY ANALYSIS

What if CAC doubles? Retention drops 20%?

Three scenarios: Base (10K Y1, breakeven M24), Bull (15K Y1, breakeven M20), Bear (6K Y1, breakeven M30). For each: required Series A size, dilution, founder ownership.

VALUATION

Pre-money: ₹20–30 Crore

Justified by: comparable Indian health-tech seeds (eka.care, MFine seed rounds), team credibility, beta traction, ABHA positioning, multi-stream revenue thesis. ₹5 Cr at ₹25 Cr pre-money = 20% dilution. Negotiation room: ₹18 Cr floor, ₹30 Cr ceiling.

DILUTION ROADMAP

Founder ownership at each round

Founding: 80% founder, 20% ESOP pool. Seed (20% dilution): 64% founder. Series A (20%): 51% founder. Series B (15%): 43% founder. Goal: founder retains controlling stake through Series B by raising at strong valuations and disciplined dilution.

INSTRUMENT

SAFE vs Equity vs Convertible Note

Recommendation: priced equity round. India angel/VC market prefers priced rounds at seed. SAFE works if rolling angels first, then equity at lead investor. Convertible note only if bridge financing — not for primary seed.

COMPARABLE TRANSACTIONS

Indian health-tech reference deals

Document recent seed and Series A deals in Indian consumer health: eka.care, MFine, HealthifyMe, Cure.fit, Practo. Valuation multiples, dilution patterns, lead investors. Frames our ask as reasonable, not aggressive.

06 — EXECUTION

From idea to Series A.

5 phases · 18 months
PHASE 01
Days 0–30
Foundation
  • Finalize 3-yr financial model
  • Build pitch deck (dark editorial)
  • Lock 2 advisory board members
  • Beta-family testimonials & case studies
  • Founder narrative content
PHASE 02
Days 30–90
MVP & First City
  • MVP live: vault, nutrition, AI, doctor connect
  • Launch in Tier 2 city #1
  • 5–10 clinic partnerships
  • WhatsApp community strategy
  • First 500 paying users
PHASE 03
Days 90–180
Scale & Validate
  • Launch in Tier 2 city #2
  • Hit 1,000 paying users
  • First insurance pilot signed
  • Diagnostic lab integrations live
  • Regional language content live
PHASE 04
Months 6–12
Traction Engine
  • 10,000 paying users
  • ABHA integration live
  • 3rd & 4th city expansion
  • API licensing revenue starts
  • Series A conversations begin
PHASE 05
Months 12–18
Series A Ready
  • 50,000 paying users
  • Breakeven unit economics
  • Insurance partnership closed
  • Investor dataroom complete
  • Term sheets — close Series A