Project Idea

WBW Trades SP. ZO.O. (WBW Trades) is a Polish company specializing in the wholesale trade of high-quality spare parts for various industries, catering to a wide range of vehicles and machinery. WBW Trades offers parts and accessories for cars and trucks, tires, batteries, oils, tools, spare parts and accessories. WBW Trades started operations in August 2019 and has since been successfully providing services, achieving a significant increase in sales and profit: in 2023 the business recorded EUR 387,916 in net profit, up from EUR 87,751 in 2022..During 2022-2023 the company generated a large amount of customer requests.

WBW Trades boasts a team of highly experienced professionals with extensive qualifications in the field of wholesale trade and spare parts distribution. The company's team brings several years of expertise in sourcing, procurement, logistics, sales, and customer service, enabling them to deliver exceptional value to clients. Through dedication to quality, reliability, and customer satisfaction, WBW Trades has steadily grown its market share within the spare parts wholesale industry. The company holds all requisite licenses and permits essential for conducting business operations. This ensures not only compliance with regulatory standards but also instills confidence in our clients and partners, affirming commitment to professionalism and integrity in all facets of endeavors. The company has established strong relationships with partners and clients who include major manufacturers like Dodge, Iveco, Volvo Trucks, Peugeot, Miele, Bosch, Volkswagen, KIA Motors and others.

WBW Trades’s strategic plan is to enhance its inventory, expand market reach, improve operational efficiency, and invest in technology to support its wholesale trade of high-quality spare parts for various industries. To achieve this, WBW Trades seeks a loan of EUR 2.5 million with a repayment period of 5 years. As part of the first round, the company intends to raise EUR 940,000. As part of the first round, the platform intends to allocate a significant portion of funds towards expanding and diversifying the inventory of  spare parts. This includes stocking up on high-demand components across different industries, such as automotive, electronics, machinery, and more. In addition to that, WBW Trades is planning to allocate funds for targeted marketing campaigns aimed at expanding market reach and attracting new customers. This includes digital marketing strategies, participation in industry trade shows and exhibitions and establishing partnerships with retailers and repair shops. In addition to that the company intends to improve operational efficiency and streamline processes. This includes implementing an advanced inventory management system to track stock levels, automate reordering processes, and minimize stockouts. This involves upgrading warehouse infrastructure, investing in logistics software, and optimizing delivery routes. Lastly, the company intends to allocate funds for staff training and development programs to enhance product knowledge, customer service skills, and operational proficiency among employees.

A more detailed project description is available in the ‘Executive Summary’ section.

Market description and size

The spare parts wholesale market is a crucial component of various industries, including automotive, electronics, machinery, and more. It involves the distribution of replacement components, parts, and accessories to retailers, repair shops, and other businesses that require them for repairs, maintenance, or manufacturing purposes.

For instance, in the automotive sector alone, the global spare parts market was valued at over $500 billion according to 2022 estimates. The European automotive aftermarket, which includes spare parts sales, servicing, and repair, is valued at approximately €300 billion, according to the European Association of Automotive Suppliers (CLEPA). With numerous vehicle manufacturers and a large vehicle parc, there is a constant demand for spare parts ranging from engine components to body parts, electronics, and accessories. Technological advancements, such as digitization, automation, and predictive analytics, are driving significant changes in the spare parts wholesale market. Digital platforms and online marketplaces are becoming increasingly important for wholesalers to reach customers and streamline operations.

E-commerce is experiencing rapid growth in the spare parts wholesale market, with online sales accounting for an increasing share of total aftermarket revenue. Online spare parts sales in Europe are projected to reach €10-15 billion annually by 2025, according to market research reports. The spare parts wholesale market in Europe is influenced by regulatory frameworks related to vehicle safety, emissions standards, and intellectual property rights. Regulations such as the EU Block Exemption Regulation, which governs competition in the automotive aftermarket, impact the distribution and sale of spare parts.

Executive summary (Business plan and financial model)

WBW Trades SP. ZO.O. is launching the current funding in order to:

• Stock up on high-demand components across different industries, such as automotive, electronics, machinery
• Upgrade warehouse infrastructure, invest in logistics software, and optimize delivery routes
• Conduct staff training and development programs to enhance product knowledge, customer service skills, and operational proficiency among employees.

All these steps will result in a successful expansion of the company’s business offerings..WBW Trades SP. Z O.O intends to split the fundraising into several rounds: as part of the first round it seeks to raise EUR 940,000.

Key financials

• The company is seeking a loan with an interest rate of 13.8 percent with a repayment term of 12 months.
• In 2023, WBW Trades SP. Z O.O. recorded EUR 387,916 in net profit, up from EUR 87,751 in 2022
• As of 2023, WBW Trades SP. Z O.O. has EUR 415,340 in fixed assets.
• The company has EUR 407,949 in equity.
• WBW Trades SP. Z O.O. projects a revenue of EUR 1 957 753 from sales and online sales by the end of 2025.
• The company expects a cash flow of EUR 2 013 508 by the end of 2023.
• The company expects receivables worth EUR 28 061 167, according to its 2023 balance sheet.
• WBW Trades SP. Z O.O. has a healthy credit history ranking according to Creditinfo, an independent aggregator of credit history information;
• WBW Trades SP. Z O.O. ‘s LTV is 45 percent
• The company’s debt to equity ratio is 0.71
• WBW Trades’ working capital ratio is 1.0

Collateral and guarantees

The loan is backed by a collateral that would cover the entire sum of the desired loan. As part of the collateral, WBW Trades SP. ZO.O. would provide the company;s equity, fixed assets as well as all the tangible assets it intends to purchase by raising funds.