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Microcap Takes Aim On A Wide Open $12.3 Billion Home Improvement Market1

Editorial Feature | November 23, 2022 | Tech 

This up-and-coming company is first to stamp its footprint into vast virgin territory.

Its teams are in place, its software is perfected, and the rollout is on pace to rapidly cover 16 urban metro areas with 104 million inhabitants.

America’s mature economy is ripe with potential. But today’s best investment opportunity could be a smart young Mexican startup that trades on the U.S. markets.

That’s not surprising considering Mexico’s 2022 GDP has been growing faster than the United States… great news for investors looking for a new land of opportunity.

Mexico is set to join the global club of fully developed market economies. That means the country is home to a slew of early-stage investment and business opportunities.

One of the best could be a company with first mover advantage in a rapidly growing market.

It looks poised to dominate Mexico’s home improvement and repair market, a market that’s estimated at more than $12 billion, much in the way Angi (formerly Angie’s List) dominates the US.

Here’s the whole story.

A $12.3 Billion Problem Looking for a Solution

When the founder of this innovative new company, headed to Cabo San Lucas intending to live the good life in the beautiful oceanside resort, he got a shock.

His new home needed substantial repairs. Miller needed contractors to repair fencing, do electrical work, and plumbing upgrades. His roof also needed a fix, and the concrete had cracks.  

And there was no simple way to find the five different specialists he needed immediately. In Mexico, one can’t use a search engine to find “roof repair near me.”

Now consider that Mexico is a fundamentally a middle-class country, with 50 percent of its population solidly middle class, and 30 percent upper class.2

Mexico’s got money to spend, plenty of it. Oil-rich Saudi Arabia has 313,000 millionaires. Quiet Mexico has 318,000 millionaires3

Most of them are homeowners. So are 80% of Mexicans.4

What’s more, in Mexico, renters are usually responsible for home repairs. They need help finding home improvement contractors, too. That adds up to a $12.3 billion annual home repair market that no one else had tried to organize, mediate, and facilitate.

Today that solution is rolling out across Mexico. When Miller realized his problem was shared by millions, he took action. And a new enterprise was born.

Miller had already seen highly successful services, like Angi in the US, that matched contractors with homeowners and rated their performance.

But because of Mexican laws and regulations, it’s extremely unlikely that a US-based company like Angi will ever move into Mexico.

The answer to Mexico’s challenges is best solved with an answer that fits Mexican realities and culture. A company whose working parts are all-Mexican. It operates from Mexico, serves customers only within Mexico, and hires Mexican employees.

That’s exactly what Miller created.  

This early move and local focus positions this company as the frontrunner in a wide-open market that no other service has tapped.

Tapping A Critical Need with Millions of Potential Customers

Only 43% of Mexican households have a computer5. And for those who do, broadband connections are usually slow. But some 80% of Mexicans own a mobile phone and are avid app users.6

Altogether, 90 million people in Mexico use mobile apps as of 20227. And 94% of Mexicans bank with mobile apps.8

That makes this app-based company the perfect solution for a common problem that no one else is addressing… 

This company’s centralized, user-friendly interface helps solves these problems for homeowners. Reviews and tracking weed out the duds, so users can make more informed choices.

It also gives the best contractors several ways to stand out. They can achieve higher ratings with good reviews. That means they also get higher placements in search results.

Contractors can also use the companies cybercurrency as a reward to encourage new customers and thank recurring ones. 

Mexico’s also tough for good contractors who are trying to connect with new customers because of the low Internet usage levels. In places like Cabo San Lucas, where many wealthy and celebrity homeowners are part-timers dropping in from elsewhere, this companies’ app offers contractors visibility.

It’s no surprise this company has been quickly populating its app with hundreds of available contractors, and amassing thousands of users in every locality.

And every time a search leads to a successful contract, this company gets a percentage of the job fee.

Upgrade Revenues Add More Potential

This innovative company also offers three levels of premium access at a set fee to homeowners and contractors. That’s additional revenue for the company. Incentives for homeowners to upgrade include higher reward structures, greater discounts, or priority access to popular contractors.

For the contractors, paying into a premium system means higher search placements and more visibility to call out their listings, as well as opportunities for advertising.

Then there’s also the revenue stream that will come from third-party advertising for businesses such as hardware stores, lumber yards and toolmakers.

This company began running tests before launch to learn how well their plans to attract users would work, and the projections look great.

In the least effective tests, about 1% of the users exposed to the company decided to download the app. In the best cases, the adoption rose to 3%. Given the  28.2 million homeowners in the areas where this company has set up, that would yield anywhere from 281,000 to 845,000 app downloads over a 1-2 year campaign.

If only half the users use the service for a modest job, assuming the lowest 1% response, that could amount to $1.4 million in revenues per month.

But that’s only the base. Upgraded services and advertising could easily raise the revenues to $5.7 million per month.

What to do now…

Today’s low-key profile and modest price poise this stock for exceptional growth in the coming year as revenues come in and SEC reports show its success.  

Enter your email address below to learn more about the company at the forefront of this fast-growing opportunity.  

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1https://www.statista.com/statistics/1186929/market-value-home-improvement-mexico/
2 Mexico is becoming a fundamentally middle-class country with 50 percent of its population as middle class, and 30 percent being in the upper class.
3 https://en.wikipedia.org/wiki/List_of_countries_by_number_of_millionaires
4 https://www.kevinklinkenberg.com/blog/why-does-mexico-have-a-higher-rate-of-home-ownership-than-the-us
5 https://www.statista.com/statistics/712803/household-ownership-computer-mexico/In 2020, the number of smartphone users in Mexico was estimated at nearly 81 million. This is an increase of about five percent from the 77 million users registered the previous year.
6 https://www.statista.com/statistics/183604/mobile-phone-user-penetration-in-mexico/
7 https://www.statista.com/statistics/1201021/mexico-number-app-users/
8 https://www.pymnts.com/news/mobile-payments/2022/study-94-of-mexican-consumers-use-mobile-banking/

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