# Borzo Financial Model

Global same-day logistics marketplace connecting B2B merchants with crowdsourced couriers for last-mile delivery

- Canonical: https://finamodel.com/startups/borzo
- Excel download: https://finamodel.com/startup-models/borzo.xlsx
- Category: Marketplace
- Model type: Marketplace / GMV
- Funding round: Series C
- Funding: $35M
- Founded: 2021
- Geography: 10 countries, ~100 cities - Russia/EMEA (26 cities), Indonesia/APAC (24 cities), India (11 cities), Brazil (8 cities), Malaysia (8 cities), South Korea (7 cities), Vietnam (3 cities), Philippines (3 cities), Turkey (6 cities), Mexico (2 cities) [DECK, slide 3]
- Customer: B2B

## About the company

Borzo is a same-day logistics marketplace connecting B2B merchants with crowdsourced couriers for last-mile delivery. The business operates across regions and is designed to remain asset-light, matching delivery demand with courier supply rather than owning a fleet.

The deck reported $87 million of gross revenue in 2020, 19.7 million completed deliveries, and a 20% GMV take rate, with additional services such as insurance and cash-on-delivery handling. Growth is supported by merchant demand and a high share of organic and referral order flow.

The financial model builds delivery volume, average delivery fee, and take rate by geography. A gross-to-net revenue waterfall then deducts courier remuneration and adds ancillary services, before rolling country results into a consolidated P&L. Scenarios focus on delivery growth, marketplace liquidity, courier payout, and regional margin progression.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Core product: on-demand intracity same-day delivery (end-to-end, A-to-B, 30–90 min)
- Premium / dedicated: high-SLA products with guaranteed courier assignment, thermos bags, >20 km range
- Routed same-day: multi-parcel enterprise routing in 2hr+ intervals
- Dedicated delivery: door-to-door from local stores (retail, restaurant, pharmacy chains) launched 2020
- Value prop: crowdsourced courier pool keeps capex zero; merchant base is SME-first then enterprise once courier density matures

## Market

- E-commerce market in Borzo's 10 target countries: $205bn (2019A) → $289bn (2020A) → $332bn (2021E) → $383bn (2022E) → $440bn (2023E) → $504bn (2024E)
- E-commerce online sales penetration in APAC countries: 11% (2019A) → 15% (2020A) → 17% (2021E) → 20% (2022E) → 23% (2023E) → 26% (2024E)
- Same-day delivery described as "fastest growing segment of consumer logistics"
- Emerging markets characterised by high population density, poor existing logistics infrastructure, and rapid e-commerce digitalization

## Revenue model

- Take rate: 20% of GMV (delivery fee); higher in more mature markets
- Revenue waterfall (slide 5 image): Gross revenue → less Courier remuneration (largest deduction, visually ~50–60% of gross) → Net revenue → Royalty → Additional services
- Additional revenue streams: delcredere (credit risk), insurance, cash-on-delivery handling fees
- Net revenue = Gross revenue × net take rate (after courier pay); exact net take rate not stated
- Royalty line: likely intercompany/franchise fees from country subsidiaries to HQ
- Pricing to merchants: simple fee per delivery (distance/weight-based pricing implied)
- Channel mix: up to 80% of orders from organic / referral (zero cost); remainder from paid digital + outbound sales team (built since 2020)

## Traction & metrics

- Gross revenue 2019A: $45m
- Gross revenue 2020A: $87m (+90% YoY)
- Gross revenue 2021E: $140m
- Gross revenue CAGR 2019–2021E: 80%
- Active clients 2020A: 1.8m (+325% YoY)
- Total B2B client base: 2m
- Completed deliveries 2019A: ~6.5m (implied, tripled to reach 2020A)
- Completed deliveries 2020A: 19.7m (+210% YoY)
- LTM deliveries by region: EMEA 8.6m, APAC 18.2m, Americas 2.4m (sum ~29.2m - slightly above 2020A 19.7m, suggesting LTM extends into early 2021)
- Up to 70% of annual GMV contributed by retained clients
- Orders placed by retained cohorts in year 2+: 100–180% of acquisition-year orders (net expansion - clients grow usage over time)
- 5-year capped LTV/CAC: at least 3x
- Positive cash flow in most mature markets
- Team size: 1,000+ FTE

## Unit economics

- Take rate (gross): 20% of GMV
- LTV/CAC (5-year capped): ≥3x
- CAC: 80% of orders acquired at $0 (organic/referral); blended CAC not quantified
- Courier remuneration: largest cost item (visually dominant in waterfall, est. ~50–60% of gross revenue)

## Competition / moat

- Not explicitly named in deck
- Stated moats: (a) crowdsourced courier density - self-reinforcing network effect; (b) SaaS-like merchant retention (70% GMV from retained cohorts); (c) word-of-mouth chain reaction; (d) organic channel dominance (80% zero-cost orders); (e) multi-country operational playbook replicated across 9 new markets in 3 years

## Team & funding ask / use of funds

- Mike Alexandrovski - Founder & CEO; 20+ years, serial entrepreneur, top-5 Russian media agency
- Alex Shamis - Co-founder & Deputy CEO; co-founder 16vc.com, built 3 marketplaces, co-founded food delivery merged with DeliveryHero
- Dmitriy Zubkov - Co-founder & Head of Russia; 12+ yrs exec, prior CEO of large appliance distributor
- Maria Teslo-Danilova - COO; 10 yrs exec, prior COO/BoD at WayRay (holographic AR)
- Alexander Galkin - CTO; 18 yrs web development incl. 7 yrs as Borzo CTO
- Sabrina Shaikh - CRO; prior Head of Sales Operations & Analytics at Maersk (700-person global sales)

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## Recommended financial model

- **Archetype + why:** Marketplace GMV / take-rate P&L model. Borzo is a two-sided marketplace with a clear gross-revenue → net-revenue waterfall (GMV × gross take rate → less courier pay → net revenue). The multi-country structure warrants a regional roll-up. This is not a SaaS ARR model (no subscription), not an asset-heavy logistics P&L (fully asset-light), and not M&A/SPAC.

- **Forecast horizon & granularity:** Monthly for Year 1–2 (Jan 2021 – Dec 2022); quarterly for Years 3–5 (2023–2025). The deck provides 2019A, 2020A, and 2021E anchors - model should reconcile to those.

- **Key drivers & assumptions:**

| Driver | Value / Source |
| -- | -- |
| Gross revenue 2019A | $45m |
| Gross revenue 2020A | $87m |
| Gross revenue 2021E | $140m |
| Gross take rate | 20% of GMV; step up to 22–24% in mature markets over time |
| GMV (implied) | Gross revenue ÷ gross take rate = $435m in 2020A |
| Active clients 2020A | 1.8m |
| Orders per active client (annual) | ~11 deliveries/client in 2020A (19.7m ÷ 1.8m) |
| Revenue retention (GMV from existing cohorts) | 70% |
| Blended LTV/CAC (5-yr) | ≥3x |
| Headcount | 1,000+ FTE 2020; |
| Organic acquisition % of orders | 80% |
| Sales-channel order share growth | Doubled in 12 months (3Q20–2Q21) |
| E-commerce market CAGR in target regions | $289bn → $504bn, 2020–2024E (~15% CAGR) |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Base:** Gross revenue growth per deck trajectory (80% CAGR to 2021E, then decelerating to ~30% by 2025); take rate stable at 20%; courier costs at 55% of gross.
  - **Bull:** Take rate expands to 23% in mature markets; net new city expansion accelerates; sales-channel mix raises blended delivery count per client.
  - **Bear:** E-commerce growth in key APAC markets slows; courier competition erodes take rate to 17%; customer acquisition costs increase as organic channel matures; FX headwinds in EM.

- **Required sheets / outputs:**
  1. Assumptions - all drivers, toggles, scenario switch
  2. Revenue build - GMV, gross revenue, courier remuneration, net revenue, royalty, add-on services by region (EMEA / APAC / Americas)
  3. Cohort waterfall - new vs. retained client GMV by year (seeded from 70% retention and order expansion data)
  4. P&L - net revenue → gross profit → OpEx (S&M, tech/R&D, G&A) → EBITDA → EBIT
  5. Unit economics summary - LTV, blended CAC, payback, LTV/CAC by channel
  6. Regional roll-up - revenue and delivery volume by macro region
  7. Dashboard - KPIs: GMV, gross rev, net rev, active clients, deliveries, take rate, LTV/CAC

## Frequently asked questions

### Is the Borzo financial model free?

Yes. The Borzo model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.