FiveSS, a construction-focused startup, made its pitch to the Sharks in the seventh episode of Shark Tank Vietnam’s seventh season. With two decades of industry experience, founder and CEO Đỗ Quý Sự understood the pain points of the construction industry, having worked as a contractor, building materials trader, and client.
“The reality of the construction industry is that workers have to travel long distances from their homes,” Mr. Sự shared. “During the COVID-19 pandemic, like many other businesses, we faced challenges in bringing contractors and workers back to their hometowns. Construction workers had to live away from their families, and children missed their fathers while wives longed for their husbands and yearned for family meals. So, I decided to address this industry pain point by creating the FiveSS e-commerce platform.”
FiveSS connects customers seeking construction and home repair services with contractors and specialized tradespeople nationwide. Officially licensed by the Ministry of Industry and Trade in June 2023, FiveSS has since attracted 8,000 users, primarily in Da Nang, including over 600 service providers. Approximately 2,000 users access the app daily, according to Mr. Sự.
The founder estimates a substantial 237 trillion VND annual market potential for the repair and home care sector. Aiming to dominate the national market and develop additional app features, he sought an investment of 85,000 USD (approximately 2 billion VND) for a 3.5% stake.
Mr. Sự highlighted three key advantages of FiveSS: first, the platform legally vets and selects contractors; second, it offers a contractor guarantee, allowing customers to choose an alternative team if the assigned one underperforms or is unavailable; and third, all transaction records are securely stored on the platform.
Regarding service pricing, FiveSS provides a reference price list based on the startup’s insights, with costs comparable to the market rates.
Shark Phạm Thanh Hưng acknowledged the platform’s role as a mediator, ensuring harmony between customer and contractor interests, and identified this as the key to its success. In response, Mr. Sự emphasized that FiveSS not only guarantees contractors for customers but also ensures payment to contractors to prevent non-payment issues.
Clarifying FiveSS’s role, Mr. Sự explained that the platform connects all parties, providing payment guarantee consultations to ensure transaction success. FiveSS charges a 3% commission on each transaction and additional fees for store openings and contractor memberships, ranging from 2 to 20 million VND annually.
As of May 2024, FiveSS recorded a GMV (Gross Merchandise Volume) of 41 billion VND, generating revenue of over 600 million VND.
Shark Nguyễn Văn Thái observed that the startup was attempting to monetize every feature, suggesting they simplify the software and focus on a fixed brokerage fee per customer request instead of adding financial assessment and banking-related functions. Shark Thái opted out of the deal.
Sharing a similar perspective, Shark Lê Mỹ Nga advised the startup to prioritize community value by offering convenience, affordable prices, and diversity on its platform, emphasizing membership benefits. She also chose to step away from the deal.
Shark Minh Beta expressed concerns about customers’ preferences for familiar repair services, doubting the startup’s ability to gain a competitive edge. As a result, the Beta Group chairman also declined the investment opportunity.
Shark Nguyễn Hòa Bình, a tech industry expert, critiqued the startup’s UI and UX as unprofessional and lacking refinement.
“I sense that you don’t fully grasp the intricacies of running a company and understanding key business metrics,” he stated. “While you have expertise as a contractor, you lack the skills to manage a technology product. It’s not enough to identify a market need and jump into action. This field demands a substantial financial backing of hundreds of billions, if not trillions, to facilitate supply and demand, especially during peak periods. I find it hard to believe in your success, so I decline to invest.”
Shark Hưng, however, saw potential in the startup, despite their confusion over the platform’s monetization model. He offered the requested investment of 85,000 USD but for a 20% stake.
After a tense negotiation, the founder agreed to a 10% stake, while Shark Hưng proposed 12.5%. Ultimately, Mr. Sự accepted Shark Hưng’s final offer of 85,000 USD for a 12.5% stake, concluding a successful investment deal.
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