INVESTOR

MEMORANDUM
Table of Contents

Company History.........................................................................................................................................4
Market Overview.........................................................................................................................................5
Traction and Financial Projection................................................................................................................7
Financial Requirement.................................................................................................................................7
Company Valuation.....................................................................................................................................8
Investment Highlights..................................................................................................................................8
Expansion Plan............................................................................................................................................9
Management Team...................................................................................................................................10
Long Term Goal.........................................................................................................................................11
Conclusion.................................................................................................................................................12
Executive Summary
Light of Hope Ltd. starts its journey with a mission to provide high-quality learning experience
to young children to prepare them for the future with 21st century skills like creativity,
problem-solving, emotional intelligence and moral values.
Globally out of 1 billion children who go to primary schools, 70% of them will enter into a job in
the future that doesn’t exist today. Our schools don’t prepare children with the right skills from
early age - the most vital period to develop any new skills.
In the last 5 years, we have created some of the world’s best children's books, learning contents
and courses that help children develop future skills. As a Bangladeshi-based company, we have
started our operation in Bangladesh as the first target market. However, from day one, we have
global ambition and maintained international standards. Our contents are also available in
multiple languages now.
We have generated over $1.5 Million in revenue, achieved 60% Gross margin, 25% net margin
while bootstrapping for the whole time. We have created a wonderful core team with
significant experience in the area of early grade learning, technology, product development and
media.
We are now primed for growth and we are looking for investment to grow to meet the
demand. Bangladesh’s market size for our segment is over $4B and Globally our segment is
$250B. The early grade learning and entertainment segment is rapidly growing both in
Bangladesh and Globally. In Bangladesh, the segment is growing 15% YOY and globally 10%.
We see an amazing untapped market opportunity both in Bangladesh and globally in this
segment. For the next 2-3 years, we want to consolidate our footprint in Bangladesh, capturing
a significant portion of the SOM. We believe, with the right investment and strategy, we can
capture 50% of the market share in Bangladesh in the next 10 years.
To meet our ambitious target, we have set our fundraising targets too. Initially, we are planning
to start with a $1 Million Seed Round. We will use this amount to expand our market reach
across Bangladesh making our products available in retail stores in every district. We want to
use 30% of the funding to create new products and improve our tech platform.
We have global ambition also. We started to pilot our international expansion with Amazon
initially. Our strategy for international expansion is to cover top global languages first and then
make our products and courses available from a single virtual platform.
We want to establish ourselves as a brand that makes the best learning contents and products
for children to make them smarter and kinder.
Company History
Light of Hope Ltd. was incorporated as a Private Limited Company in April 2017.

We consider 2018-2020, as our pilot phase where we mostly focused on building highly researched,
engaging and affordable learning products and courses for children, parents and teachers.

Since incorporation in 2017, we have achieved some incredible milestones. They are briefly described
below:

Key Milestone Description Timeline

Our first office Started with 5 employees January 2017
Started Kids Time as pilot We started ‘Kids Time’ in a single room at our office during May 2017
weekends with 20 students.
Company incorporation Founders decided to incorporate the company June 2017
Received impact grant We received a $40k impact grant from YGAP completing August 2017
their first Accelerator Program in Bangladesh
Started Teachers Time as With 4 courses for teachers, we launched Teachers Time to June 2017
pilot provide training to school teachers and parents.
Future Skill Framework After intensive research on the best and latest findings on Dec 2018
Development future skills, child development and trends in the global job
market, we developed our first ‘Global Future Skill
Framework’ based on which all of our future contents and
courses will be developed.
Kids Time expansion Kids Time centers expanded to 4 centers in Dhaka Dec 2018
Our second office We moved to a 2500 sq ft office in Dhanmondi Jan 2019
Won Sesame Street We received $100k worth of contract from Sesame Feb 2019
Contract Workshop Bangladesh to implement an education project in
50 schools.
Started Goofi We launched our children brand ‘Goofi’ with ‘Letter to Feb 2019
Picture Series’ – a creative book set that became the Best
Seller children book in 2019
Set up libraries in 500 Through our Porua project, we set up 500 school libraries Dec 2019
schools across Bangladesh directly impacting 200,000 children
Best Seller Storybook Set We launched our first storybook series focusing on teaching Dec 2019
Empathy and Values. ‘Storydoo’ became the best seller
children storybook set of 2020.
Won UNICEF Contract We received a $100k worth of contract from UNICEF to Jan 2020
develop gamified learning app for adolescent children
First Book Fair Participated with Goofi books in the National Book Fair with Feb 2020
just a 8x8 ft stall and became the second highest book seller
in the children zone.
 COVID-19 Response We closed all of our 8 Kids Time Centers due to COVID-19 Mar 2020
and national emergency.
We started our ‘Kids Time Home’ – a daily online show for
our students from the next day after our center closing.

COVID-19 Recovery We launched Kids Time Online to offer LIVE Group classes on May 2020
our courses.
Started Online LIVE Certificate courses for parents and
teachers.
First TV Show Duronto TV produced TV Show based on the stories written May 2021
and illustrated by Kids Time Children.
Received Matching Fund Signed contract with Biniyog Briddhi to receive $100k Oct 2021
matching equity-free impact fund
Goofi Retail Signed contract with Aarong, Infinity, Meena Bazar, Unimart May - Dec
to sell Goofi products 2021

Market Overview
Since we are a content-focused company, our target for Bangladesh market is in 4 segments now. Based
on our contents we are making children books, toys, and audio-visual contents. We developed our own
characters that are very popular among children.

By 2023, we will gradually enter into the international market with first 3 segments. Our targeted
segments are:

1. Children Toys and Books

2. Children Entertainment
3. Early Grade Learning & After-school market
4. Training for parents and educators

Our targeted market segment in Bangladesh

Client target: Parents with 3-10 years old children, educated and earns over BDT 40,000 per month (Min
$470 per month)

Total target market size: 3 Million parents (10% of the total Parent segment)

User target: Children 3-12 years old.

Client spending: Avg. $850 per year on books, toys and extra-curricular activities

Yearly spending: $2.5 Billion

Our target is to capture majority share of this spending.

Below is the relevant market segment information:

Market Segment Competition/Current Player

Children Toys and Books No notable brands in Bangladesh.
TAM: $1.8 Billion (18% year on year growth) Panjeri is the largest book publisher but mainly
*By 2027, the TAM will increase to $3 Billion. produce academic guidebooks.
No notable local toy brand in Bangladesh.
Global brands are not present.
Onnorokom Bigganbakso is the only notable local
brand in ‘science toy/kit’ category.
Early Grade Education Market Aloha – math course (Malyasian franchise) – 40
$2.1 Billion centers
After-school market Kumon – Math course (Japanese franchise) – 3
$200 Million centers
Local extra-curricular activity centers

Online Skill Development Market A lot of players here already

$20-30 Million (with huge growth potential)

Parent & Teacher Training Market Alokito Shikkhok

Unknown yet ToguMogu

Children Entertainment Market

Unknown market size

Indoor playzone, activity-center etc Babuland (Indoor playzone)

Children TV channel, show, program (Media) Duronto TV

The biggest opportunity that Light of Hope has created is to develop a Media Brand like Disney. And
based on those others create merchandise, toys, books etc. Disney earns Royalty.

Light of Hope already created characters and stories under its Goofi Brand that is now translated into
books, toys, TV show, merchandise etc.
Traction and Financial Projection

Light of Hope generated $1.5 Million in revenue so far. Our last 3 month revenue is $135K. We
are currently growing at 20% Quarter to Quarter.
Our Average Gross Margin on our products and courses is 60%. Our net margin is 20-25% based
on the product and service.

2020 2021 2022 2023 2024

Revenue 311,290 173,709 778,688 1,244,388 1,754,280
Total Gross expenses 55,993 29,388 455,082 472,821 657,592
Gross Profit 255,297 144,321 323,606 771,567 1,096,688
Salary 156,855 109,337 182,290 225,578 277,698
Depreciation &
21,300 34,488
Amortization 4,819 4,067 11,225
Distribution &
42,241 47,245
Logistics 9,328 6,444 34,344
General & Admin 32,547 28,427 96,990 133,196 187,762
Selling & Marketing 190,751 220,016
57,948 60,012 145,492
Other expenses 1,263 5,986 16,817 29,098 41,215
Corporate Tax 0 0 0 6,470 14,413
Net profit/loss after
(163,552) 122,932 273,851
tax (18,673) (83,770)
*All numbers are in USD

Financial Requirement
We are targeting to raise $1 million for our Seed Round.
Our Fundraising target:
Series A target: $5-8 Million (2 year from Seed Round closing) - For Country wide expansion &
piloting for regional expansion.
Series B target: $20-25 Million (2 years from Series A closing) - For Global Expansion

Company Valuation
Discount Rate 15% 18% 20% 23% 25% 28% 30%
FCF at Y5 170,149,806 1S1,06%898 139,74 080 12459488 115569,477 103,431,76 96,167,897
2 2
Perpetual Growth Method 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%
Terminal Value 1,395,228,40 998,951,101 818,5O1,042 622,974,409 526,483,17 415,755,122 358,443,981
8 3

PV of Terminal Value 693,675,105 436,650,733 328,937,211 221,281,267 172,518,006 121,000,666 96,539,386

NPV of Cash flow 170,149,806 151,060,898 139,744,080 124,594,882 115,569,477 103,431,762 96,167897
Enterprise Value 863,824,910 587,711,631 468,681,292 345,876,149 288,087,483 224,432,428 192,707283

Investment- Series A 212,500,000 212,500,000 212,500,000 212,500,00 212,500,00 212,500,00 212,500,000

0 0 0

Valuation in BDT 1,076,324,91 800,211,631 681,181,292 558,376,149 500,587,483 436,932,428 405,207,283

0

Valuation in USD 12,662,646 9,414,254 8,01,898 6,569,13l 5,889,265 5, 140,382 4,767,145

Investment Highlights
Expansion Plan
Our current LTV is $60 and CAC is $10. We have a total of 3000+ subscribers who take our courses and
products on a regular basis giving us a recurring revenue of about $30k per month.

There is a great product-market fit for our products and services. We now want to expand our user base.

Our expansion plan is focused on 3 business verticals. In the next 2 years (Year 2022-2023), we simply
want to scale up our operation and increase the number of users. Besides we want to ensure user
retention.

Customer Acquisition and Retention in Bangladesh

Here’s our strategy and marketing plan for customer acquisition:

1. Introducing ‘Affordable Entry Products’: Our minimum price for any product was $10. This was an
entry barrier to new customers trying our products. Now, we are introducing 5-6 entry products that
cost $4-5 for a parent. This is increasing our TAM and getting more entries from new parents.

2. Making products widely available: Currently, our products are available in 50 retail locations that
include top brands like Aarong, Infinity, Bengal Book etc. In the next 2 years, we are making our product
available in 1000+ retail locations across Bangladesh. The stores receive our branded product shelf to
ensure visibility of our products.
3. Bringing offline customers to Membership: With every product, a membership form is attached to
get retail customers to become our subscribed members. Our tele-sales team follows up with the
customers who purchased for the first time to convert them into regular memberships. We will continue
to focus on increasing our membership for higher LTV.

4. Launching shows for Children: We already collaborated with Duronto TV to produce two Seasons
(38 episodes) based on the storybooks written and illustrated by Kids Time students. We will launch
both our TV Show and OVC show based on our goofi characters and contents.

Diversify Product Line

1. Product Diversity: We want to introduce 15 more products in 2022-23. Our focus is learning toy
section for 2-8 years old. Besides, we want to launch our own merchandize products. The toy
market is $1.5 Billion and growing 18% per year. With no recognized brand in this section, we
want to establish Goofi Toys as a go-to-brand for learning toys for children.
2. Course Diversity: For teachers and parents, we already have a framework of courses. So far, we
have developed 50+ recorded courses and LIVE Certificate courses. In the next 2 years, we want
to develop 20 more courses.

Pilot to International Market

1. International language products: Currently, we have 20 products/books for global

market. Some of our contents are in English, Spanish, Arabic, German besides Bengali.
We want to translate 20 more books in English in 2022.
2. Amazon marketplace: We are including our English products on amazon marketplace to
open it to global market in 2022. Our priority is to go for self-publishing model based on
our existing books.
3. Physical product delivery: We want to start delivering our products to international
market from 2023.

Management Team
A strong founder team with 10+ years of experience and 15+ years of friendship.

Waliullah Bhuiyan, Co-Founder & CEO of Light of Hope has over 12 years of professional experience.
Worked previously in BRAC managing $10 Million worth of projects. Best seller children book author
with readers across 30 countries and own 15 IP Rights for characters and books. Studied Electrical
Engineering from IUT, Gazipur and Masters on Energy & Environmental Management from Germany.
Long Term Goal
Below is our short term plan till 2025. We want to build on our initial products and convert
them into various other media including digital, audio-visual etc. Our contents will be translated
into top global languages (e.g top 7 languages) to reach 70% of the world's children in the next
3-5 year.
From Technology and distribution perspective, we want to build a single platform that will help
a family to purchase and interact with our products and contents and parents can track and
monitor the progress of their children on the 21st century skills that we are working with.

Conclusion
We have built a strong foundation with our products and our brands in Bangladeshi market. We
already have a strong follower base with recurring customers. Our conviction is that we can
capture 50% of the entire Bangladeshi market by next 8-10 years.
Internationally, we may have initial challenges with the distribution of our products and
services. But we are very confident about our product’s quality and the value we are offering at
the price point. With strong regional and global distribution partnerships, we can capture a
meaningful share of the international market too.