Vejii Holdings (VEJI.CN), a company offering thousands of plant-based and sustainable brands through its digital marketplace from hundreds of online vendors, launched its IPO in November 2021. If its stock price followed the general market downtrend, its recent earnings prove the company has strong growth and could wear the nickname of the “Amazon Prime of Alternative Food.”

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Vejii Holdings Overview

Vejii Holdings (VEJI.CN) is a digital marketplace offering thousands of plant-based and sustainable-living products from hundreds of vendors in a centralized, online shopping experience. The company uses technology to connect buyers with the product and brands they want. The company was first launched in the US with 3,000 plant-based SKUs (and SKUs added weekly. Five warehouses cover the continental USA and Hawaii and enable the company to have fast and cost-efficient delivery. The company then expanded to Canada in early 2021 to launch its Europe continental campaign in the UK. Five hundred brands are already onboarded, and it should grow as well. For specific metrics, Vejii has:

-A Cost of Customer Acquisition of $36.45 (the CAC steadily decreases with improved targeting);

-A Return on Ad Spend of $4.26 (Vejii is now seeking positive returns on Cost-Per-Click/Pay-Per-Click marketing and anticipates further improvements);

-An Average Order Value of $67.63;

-A substantial 58% of repeat customers with 206k monthly active users and a 34% lifetime customer retention.

The company’s products also have a positive impact on the planet. They could potentially reduce between 29% to 70% in greenhouse gas emissions and have a positive health impact by reducing the mortality rate between 6% to 10%.

The Plant-Based food market is a high-growth-type sector. If the industry is currently worth US$44B in 2022, many indicators show the market could reach US$77B in 2025 and reach US$95.2B by 2030. Talking about CAGR, it would mean an increase of ~12% each year!

In the last couple of years, there has been a change of mind about eating meat, and many persons went towards plant-based food. Some giants are already involved in the sector, including Etsy ($33.4B Mkt cap), Beyond Meat ($10.7B Mkt cap), and Oatly ($11B Mkt cap).

Vejii Holdings is led by Kory Zelickson (CEO, director). Kory Zelickson has over 15 years of demonstrated innovation and technology experience, launching successful e-commerce and technology startups. Kory is an engineer by trade with expertise in midstream processes and innovation. Kory co-founded the multivendor platform Namaste Technologies, which became a publicly-traded company in 2014. In 2018, the company reached a market valuation of +$1B, realizing +20x returns for its initial series of investors. Kory was a co-founder and COO for Namaste Technologies, serving as VP of business development and IR.

Latest Quarterly report

On May 30, Vejii announced its Q1 results, showing a significant growth quarter-over-quarter. This quarter, the company completed both Veg Essentials and VEDGEco USA acquisitions. The company was focused on the integration of its newly acquired assets, realizing synergies, including consolidating resources, increasing buying power through economies of scale, and optimizing the Company’s Key Performance Metrics (“KPI”s) to improve unit economics as management continues to focus on its path to profitability:

• Total revenue of $1,547,795 for the quarter ended March 31, 2022, compared to $241,305 for the quarter ended March 31, 2021, representing a 541% increase.
• The consolidated gross margin percentage for the three months ended March 31, 2022, was 38% compared to 11% for the three months ended March 31, 2021, representing a 242% increase.
• Customer Acquisition Cost (“CAC”) for the quarter ended March 31, 2022, was $20.66 compared to $95.44 for the quarter ended March 31, 2021, an improvement of 78%.
• Return on Ad Spend (“ROAS”) was 14.93x in the current quarter, an improvement of 1,217%, versus 1.13x times in the quarter ended March 31, 2021.

The company announced having only 28.5M shares outstanding, which makes this data incredibly low. The company also has 9.1M warrants (minimum exercise price: $0.60/maximum exercise price: $2). The exercise price of the warrants issued on September 2, 2020, increased to $0.60 from $0.004, and the exercise price of the warrants issued on September 11, 2020, increased to $1.00 from $0.04. The company also has 1.6M options (avg. exercise price: $1.28).

Share Movement

Vejii’s stock price is currently worth $0.08 for a meager $2.2M Market cap. Since its IPO, the company returned to its shareholders a continuous downtrend (-94% loss). The stock recovered from its all-time low of $0.03 and improved its share price by 60% over the last month and 100% week-over-week. We can’t use the Moving Averages as the company didn’t have a continuous 200 days of trading. If we focus on the technical analysis summary, the data are significant. The company has 11 BUY signals for 9 NEUTRAL and only 4 SELL. About RSI data, its RSI-based MA is only worth 38, and its RSI is worth 58. The company has a steady volume of 53k shares daily traded.

With a 0.96 multiple of revenue, the company is currently significantly undervalued. In comparison, VERY is worth 8.4, and ETSY is worth 7.65.

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Bottom Line

Vejii Holdings show a significant growth Quarter-over-Quarter, has solid fundamentals and is supported by its CEO, who has advanced the company by more than $1.4 million year to date. Its expansion to the European continent will bring the company more revenue, and word of mouth will help the company reduce its customer acquisition cost.

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