# Bower Financial Model Mobile app that rewards consumers for scanning and recycling consumer packaging at existing bins, monetised by CPG brand subscriptions and consumer data. - Canonical: https://finamodel.com/startups/bower - Excel download: https://finamodel.com/startup-models/bower.xlsx - Category: Climate/Energy - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $47M - Founded: 2022 - Geography: Sweden origin; targeting global expansion (deck notes "global brands in markets outside of Sweden" as catalyst for rebrand). App available on App Store and Google Play. - Customer: B2B ## About the company Bower is a consumer app that rewards people for scanning packaging and verifying recycling at existing bins. Its geolocation technology, barcode data, and rewards connect consumers with CPG brands without requiring new physical collection infrastructure. Brands subscribe for recycling data, consumer engagement, and co-branded packaging, while Bower can also monetise insights and rewards partnerships. The business reported a €1 million annualised run rate in 2021, more than one million scanned packs per month, and roughly 25 connected brands. The model should build ARR from connected brands, annual revenue per brand, and data-product uplift. Consumer cohorts matter as a leading indicator: users, scans per user, verified recycling, reward cost, and organic acquisition determine the data value that supports brand retention and new-logo growth. ## 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 - Consumer-facing mobile app (iOS + Android): users scan any barcoded consumer packaging at home, then verify at a nearby GPS-validated recycling station to earn reward points. - Points redeemable for discounts, cash, or charity donations. - Patented geolocation technology ensures deposit value is only unlocked when user is physically near a recycling bin. - For CPG brands: connected brands gain a recycling data layer on their products (scan volume, recycling rate, CO₂ saved), direct consumer engagement channel, and the ability to co-brand packaging with the Bower logo. - Key differentiator vs. reverse vending machines: works at existing bins, covers all barcoded packaging (not just PET/cans), globally scalable with no physical infrastructure required. - Certified B Corporation; member of Ellen MacArthur Foundation network. ## Market - TAM: €325bn globally. No SAM or SOM breakdown provided. - Growth rate of market: "growing" stated but no CAGR figure given. - Market composition not specified (deck does not decompose the €325bn by geography, sub-segment, or source). ## Revenue model - **Primary - B2B brand subscriptions:** CPG brands pay a per-product/per-brand annual subscription fee. Unit economics stated as "€9 per connected brand and year". Brands listed include Nestlé, Unilever, Coca-Cola, Mondelez, Orkla, P&G, Coop, Nespresso, Apoteket, and ~20 others. - **Secondary - Consumer data / insights:** Scanned-package database sold as consumer insights to brand owners. Not separately priced in deck. - **Tertiary - Rewards marketplace:** Implied by the rewards/points system (discounts, deals). Revenue mechanism (affiliate, take rate) not specified. - Annualised run rate: €1m in 2021. - No subscription tiers, tiered pricing, or per-scan fee structure disclosed beyond the "€9/brand/year" unit. ## Traction & metrics - €1m annualised revenue run rate in 2021 - 1m+ scanned & recycled packs per month, 30% MoM growth - 10,000 new users/day (peak - during viral TikTok spread in February 2021) - 200,000 scans/day (peak - same period) - App Store rating: 4.5 - #1 most downloaded app on App Store in Sweden (during TikTok viral period) - €0 paid user acquisition - 16 million packs recycled cumulatively - >20% plastic waste recycled (in participating areas/context) - Connected brands: ~25+ global and local CPG brands shown - Funding history: €100k self-financed (2015), €600k family (2017), €1m external (2020) - Note: 10k users/day and 200k scans/day are explicitly footnoted as "for two days in February 2021 during the viral TikTok spread" - not steady-state. ## Unit economics - Unit economics per connected brand: €9 per brand per year - CAC: €0 for consumers (organic/viral); brand CAC not stated - "Profitable unit economics" claimed but no P&L, contribution margin, or EBITDA figures shown ## Competition / moat - Direct competitors not named in deck. - Moat claims: - Patented geolocation technology (specific patent not cited) - Network effect: brands co-brand packaging → free consumer acquisition → more scan data → attracts more brands - Certified B Corp + Ellen MacArthur Foundation association (credibility/trust moat) - First-mover in "all-packaging" digital deposit systems (vs. reverse vending machines which only handle PET/cans) - Acknowledged competitive dynamic: a key Swedish retailer replicated the PantaPåsen bag concept themselves, forcing the 2018 pivot - highlights IP replication risk. ## Team & funding ask / use of funds - Founder/CEO: Suwar Mert (suwar@getbower.com; +46 70-715 76 52) - Founding story: Suwar quit employment in 2015 with conviction around plastic bag deposit system - Funding ask: Amount not stated - Prior funding: €100k (self) + €600k (family) + €1m (external) = ~€1.7m cumulative --- ## Recommended financial model - **Archetype + why:** B2B SaaS ARR model with a consumer volume overlay. Revenue is driven by CPG brand count × annual subscription fee per brand, supplemented by a data/insights monetisation layer. The consumer side (users, scans, packs recycled) drives the value proposition to brands and acts as the leading indicator for brand additions - so a two-sided flywheel model is appropriate. Not a 3-statement model at this stage; a driver-based ARR + consumer cohort model is more useful. - **Forecast horizon & granularity:** 3 years monthly (Year 1–2) transitioning to annual (Year 3). Monthly granularity needed to capture the MoM scan growth and brand onboarding cadence. - **Key drivers & assumptions:** *Brand/Revenue side:* - Starting brand count: ~25 - Brand count growth rate: 4–6 net new brands/month in base case, reflecting early-stage sales with a lean team; sensitivity to be applied - Revenue per brand per year: €9 - Data/insights revenue: modelled as a % uplift on subscription ARR (10–20%), given no separate pricing disclosed - Rewards marketplace revenue: excluded from base model until pricing is disclosed; flagged as upside *Consumer/Volume side (leading indicators for brand value):* - Monthly active users (MAU): starting base of ~50k–100k (steady-state post-viral spike; actual MAU not in deck - major gap); growing at 10–15% MoM base case (well below the peak 10k/day but sustainable organic) - Scans per user per month: ~8–12 (implied by 1m+ packs/month ÷ estimated MAU) - Monthly scan volume: 1m+, 30% MoM growth - use as anchor for near-term forecast - Recycling rate (scans → verified recycling events): 60–70%, reflecting geolocation friction *Cost side:* - COGS: primarily cloud infrastructure and third-party barcode/geolocation APIs; estimated at 15–25% of revenue - S&M: low on consumer side (organic); brand sales team cost to be driven by headcount additions - R&D: ~30–40% of revenue given early-stage product team; no headcount breakdown in deck - G&A: ~10–15% of revenue - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** 4–6 new brands/month, 15% MoM MAU growth, €9 ASP unchanged, data revenue at 10% uplift - **Bull:** Paid marketing added post-fundraise (slide 13 hints at this), accelerating MAU growth to 30%+ MoM; brand count growth doubles; ASP moves to €12–15 as data value proven - **Bear:** Viral growth normalises to near-zero organic, brand churn increases, no paid marketing; flat brand additions (1–2/month); scan growth stalls - **Required sheets / outputs:** 1. Assumptions - all drivers with / tags 2. Consumer Funnel - MAU, DAU, scans/day, scans/month, recycling events 3. Brand ARR - brand count waterfall (new, churned, net), ARR by stream (subscription + data) 4. P&L - Revenue, COGS, gross profit, OpEx (S&M, R&D, G&A), EBITDA 5. Cash & Runway - given early stage and implied fundraise, a simplified cash burn / runway model 6. Scenario toggle - Base / Bull / Bear selector driving assumptions sheet 7. KPI Summary - MRR, ARR, brands connected, scans/month, MAU, gross margin %, burn rate ## Frequently asked questions ### Is the Bower financial model free? Yes. The Bower 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.