Regalii- Save and buy more – 100% free Remittance

Regalii- Save and buy more – 100% free Remittance

Santo Domingo, Dominican RepublicLewes, United States
Organization type: 
for profit
Project Stage:
Growth
Budget: 
$250,000 - $500,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

Regalii revolutionized remittance transfers by making them collaboratively free for Latin people and their families in USA

About Project

Problem: What problem is this project trying to address?

Remittance is the biggest foreign capital of Latin America families. According to our studies, the main problems to users are high commissions and difficult delivery process. According to World Bank, the average transfer’s commission was 10% in 2009. That is why G8 has started “5 by 5” project to reduce it to 5%. Nowadays, the entire process expensive, slow and non social.

Solution: What is the proposed solution? Please be specific!

Regalii has created an innovative way of remittance transfers among Latin people in the US and their families living in Latin America, making them collaborative and for free. Instead of sending money, Regalii allows them to send group gift cards (via SMS) for stores and supermarkets in Latin America. The recipients receive an text message with an e-code, that can be used in Latin America stores and supermarkets. For the senders, it will be the first time they transfer remittance in a free and immediate way. For the recipients, Regalii is a totally safe and convenient system that can be used as soon as received. 80% of the population in Latin America has mobile phones and Internet access; this is why Regalii can operate new technology in a very efficient way.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Regalii will sell online gift cards in its web site regalia.com and also in stores and remittance companies in US. Regalii buys gift cards with a 5 to 15% discount in stores and then sells them to users. 1- Users (Latin people in US) select a store and the amount in Regalii. 2- Users invite their families (via Facebook or email) to increase the amount to send. 3- The web site receives and processes the payment. 4- The recipient (Latin people living in LA) receives its Regalii (via MSM) and uses it in any affiliated members network Regalii changes the business model and uses new technologies to make it work. With 80% of the population using mobile phones, Regalii can reach any place in Latin America and offer new services to them at a minimum cost. Our primary activities are to attract more users in US and create a network in Latin America to redeem the Regaliis.
Sustainability

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

Regalii has not a direct competitor. It’s an e-commerce platform first, and then an e-remittance one, seeking to serve the entire Latin market. The closest competitor is Xoom.com. Regalii operates as a complement and is not a competitor for WU or MG, because they work with a different market and offer a different product. Regalii offers more complete services and focuses on the users’ real needs. The recipients use 70% of the remittance to basic needs as: food, clothing, electronic products and medicine. Regalii also offers a “shopping mall” experience, where people can choose the type and location of the stores to redeem their Regaliis.
Team

Founding Story

All Regalii’s members are US immigrants and have experienced the remittance system both as senders and recipients. The system hasn’t changed in the past 20 years; it’s still extremely expensive, slow and hard to use. Its service doesn’t solve the real problem and people still use it because it is the only one available. We realized that people use remittance to buy things of common use and that is when we decide to create Regalii, offering a free, more efficient and faster service. We build Regalii because as immigrants, we know the importance to provide for our families in Latin America.
About You
Organization:
Regalii
About You
First Name

Inigo

Last Name

Rumayor

About Your Organization
Organization Name

Regalii

Organization Country

, DE, Lewes, Sussex County

Country where this project is creating social impact

, SD, Santo Domingo

How long has your organization been operating?

Less than a year

Has the organization received awards or honors? Please tell us about them

• Echoing Green: Echoing Green’s world-renowned two-year Fellowship program provides more than $2 million in seed funding to a diverse group of the world’s most promising social entrepreneurs. From thousands of applicants, typically fewer than one percent are ultimately selected as Echoing Green Fellows. Those selected receive up to $90,000 in funding to launch new organizations; access to Echoing Green’s robust network; leadership development opportunities; and one-to-one support and counseling. Our newly launched Alumni Program builds community among our 500+ Fellows dating back to 1987 in order to foster peer learning, shared access to useful resources, and a lifetime commitment to positive social change.
• Start-up Chile: Start-Up Chile is a program created by the Chilean Government, executed by Corfo via InnovaChile, that seeks to attract early stage, high-potential entrepreneurs to bootstrap their startups in Chile, using it as a platform to go global. The end goal of the accelerator program is to convert Chile into the definitive innovation and entrepreneurial hub of Latin America; this is a mission shared by the Government of Chile and is a primary focus of the Ministry of Economy.
• GoodCompany Ventures: GoodCompany Ventures is an intensive three-month program which addresses strategic challenges faced by entrepreneurs. Together, the class builds a robust commercial strategy to implement and scale each entrepreneur's vision for social innovation.This program is a pioneer in the social sector, repurposing a proven venture strategy in this emerging sector. Unlike conventional venture incubators, GoodCompany doesn’t extract an equity commitment from entrepreneurs, but expects a commitment of time and creativity toward building a community of social entrepreneurship. Throughout then ten-week program, entrepreneurs develop the strategic focus to direct their companies into the future. The program will culminate in a graduation event where companies will pitch their ideas to investors.

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Innovation
How long have you been in operation?

Operating for less than a year

Which of the following best describes the barrier(s) your innovation addresses? Choose up to two

Access, Cost.

Social Impact
Please describe the goal of your initiative; outline what you are trying to achieve

Regalii’s goal is to create the first free remittance system that helps immigrants in the US and the rest of the world, sending resources to their LA families at no cost. This will help Latin people and its families to be closer and support each other without an excessive cost.
Because we seek to make Latin people’ issues easier, we create free money remittance and a free calling service with our allied Twispi.
As Latin people we know the importance of being close to your family and we want to offer the more affordable and efficient service to them. Savings that Regalii allows are very important to all Hispanic population.

Which barrier(s) to financial inclusion does your solution seek to address? (select all applicable)

The lack of affordable financial products tailored to the needs of underserved and excluded communities,, Powerful incentives for financial service providers to move up-market.

If you selected 'other' above, please specify which other barriers to financial inclusion you solution seeks to address:
For which underserved or excluded communities will your solution create access to valuable, affordable, secure and comprehensive financial services?

Regalii is the first free and instant remittance system offering an instant benefit to all marginalized communities in Latin America. It also creates access to new financial services trough Regalli’s platform. Regalii is creating a very important distribution network in Latin America, which can offer all kinds of financial services in an affordable and friendly way. It uses its technology and network to create a new service for users to send and receive money via text messages. That allows having a financial interchange via mobile phones and redeeming its credit.

Could your solution work in other geographies or regions? If so, where?

Regalii’s solution can operate in every country with local and international money delivery. Regalii has more control over the transfer resources, because they can be sent for particular needs. Today Regalii is operating in Mexico and Republica Dominicana, but we pretend to expand it throughout Latin America. Its model is very easy to export to many countries.

If your solution is dramatically successful, how will things be different in 10 years?

If by 2017 Regalii achieves to capture 1% of the $ 69 thousand million, it would be managing $ 690 million in transaction activities. This would be users’ savings for $ 69 million installments (in 2010 the average installment was 10%) (IFAD, 2011). In 10 years Regalii will include millions of underserved families in Latin America to new, easier and more affordable financial services. The Regalii’s network will have thousands of distribution points, increasing its market presence. Users will be able to send money to the entire world and have credit access to the distribution points via text messages.

What will have had to have changed to make this happen?

Regalii’s network needs to keep growing to reach every city and corner of Latin America. Users would start using internal remittance within their countries. Increasing the amount of users and the use of regaliis. Regalii will be able to expand its financial services and offers. The needed technology already exists; it hasn’t yet been capitalized to money transfer, or allowing Latin America families’ access. This new service is much more affordable and can reach all Latin America by mobile phones.

What has been the impact of your solution to date?

Regalii has just started operating in Mexico and Republica Dominicana in a BETA way, to improve the product and its functioning. We have had an excellent acceptance among users who had tested the platform and we have more than 3,000 users waiting for us to open the platform. The long-term social impact of Regalii is very important, especially for the benefits to underserved people and their families at the bottom of the pyramid.

What is your projected impact over the next five years?

Regalli hopes to generate 40,000 transactions by 2013, 150,000 transactions by 2014 and finally, 300,000 transactions by 2015. That would allow savings for $ 10,000, not mentioning other costs and wasted hours, transportation, calls and money lost for users in a very difficult process. The impact expected for the next 5 years is huge, since Regalii seeks to attract at least 1% of the market, allowing savings of more than 69 million for the Latin America families.

What barriers might hinder the success of your project? How do you plan to overcome them?

The main barrier is building the Latin America network. We need a large enough network to redeem the remittance received. The bigger the network, the more choices for the users to find Regalii‘s members and use the remittance in cash to buy things or pay services in a free and fast way. We developed a benefit plan for the members to accept the regaliis: first, we give them access to an international sale and to a new market, and then, giving them the choice to offer promotions and news services via text messages through all Regalii’s users network with money to be used immediately.

Winning entries present a strong plan for how they will achieve and track growth. Identify your six-month milestone for growing your impact

• Launch the product in Mexico and Republica Dominicana • Get 4 new affiliated for the network. • Offer services payment in US a

Identify three major tasks you will have to complete to reach your six-month milestone
Task 1

Taking into account the BETA tests and users’ feedback to improve the platform

Task 2

Keep up discussions with 10 chain stores to improve the Project and show its benefits.

Task 3

Reach technologic integration with those 4 chains in the next 3 months. Generate sales.

Now think bigger! Identify your 12-month impact milestone

Be operating and selling in Republica Dominicana and Mexico. We expect to have a network with 10 affiliates and generate some mo

Identify three major tasks you will have to complete to reach your 12-month milestone
Task 1

Expand the affiliated network in Mexico and Republica Dominicana and operate it.

Task 2

Offer new pre-paid services to users, such as telephone, electricity, water and gas.

Task 3

Prepare Chile and Brasil expansion to get new affiliates and identify local and international users.

Sustainability
Tell us about your partnerships

Regalii has created important alliances for its model business development. In terms of distribution, we closed a partnership with ATI (remittance company with 120 sales points). We have 2 important agreements with Anthony's in Republica Dominicana and 7-eleven in Mexico for the Latin America network. We are already working with 4 other chains. We want to offer a free international calling service with TWISPI, which will give us a competitive advantage over other remittance companies. We’ll be able to offer financial services via text messages with Pademobile, a mobile phone banking company.

Are you currently targeting other specific populations, locations, or markets for your innovation? If so, where and why?

We are targeting Latin America. We decided to begin with the 2 largest remittance markets. We are sure that if we implement our model in these 2 markets, it will be very easy to export it throughout all Latin America and the world. Especially, because our investors such as Banco Itau and Acción, are already operating in many Latin American’s countries.

What type of operating environment and internal organizational factors make your innovation successful?

Thanks to our system of intellectual property and to our web site, we are able to offer the more effective service to our users and to create a profitable business model.
We have several control systems already operating, in order to make transactions and emend any mistake in our system and in our affiliates’.

Please elaborate on any needs or offers you have mentioned above and/or suggest categories of support that aren't specified within the list

Thanks to our social investors, we have the opportunity to offer consulting and community support. Our experience in marketing will be able to also offer support to other society members. Our team has experts in Legal, marketing and financial matters that may help the community.