© 2019 Pesky

Round Financials

What are the long-term unit economics of our market platform?
























The commercial model for our market platform is built on four simple principles:

  1. Customers are able to buy fish from any fishermen, regardless of the port, and have it delivered in one consignment within 24 hours.

  2. Pesky charges a transparent % fee on all fish sold through the platform - this becomes our 'wholesale price' and reflects the fulfilment costs involved in our port franchisees preparing a 20Kg box for delivery.

  3. We then charge an additional £/kg fee (£2+/kg) when selling to added value customers up the chain (fishmonger, chefs, B2C). This reflects the additional fulfilment costs involved such as filleting and packing into smaller boxes - where overhead costs are aligned to weight rather than cost of fish.

  4. Delivery is charged on top of the cost of fish - either in £/kg for wholesale customers or a fixed price per drop for added value customers - whether across the UK or across the world.

This is assuming a universal fulfilment cost base where:

  • Of the 20% market fee, 10% is retained by Pesky as a platform fee with the other 10% returned to the franchisee to cover port fulfilment costs of:

    • Landing and consolidation​

    • Size and quality grading

    • Management of auction

    • Customer ready sorting and packing of whole fish (no processing)

    • Large size packaging (20kg reusable quay box or poly box)

  • Of the £2+/kg mark up to added value customers, a minimum of £1/kg is retained by Pesky with the other £1/kg returned to the port franchisee to cover the additional labour and packing costs of:

    • Additional handling and filleting​ for added val

    • Smaller packaging 

  • While delivery charges are separate to the cost of the fish, they are attributed as a service fee income, in addition to the platform fees above. 

This means that through our model, we are actively incentivised to market as much catch as possible to added value customers as well as attain the highest price for fishermen. Outside of the incremental profit Pesky receives, this helps us to:


  1. Drive more value back to the boats, incentivising their participation.

  2. Develop greater commercial opportunities for our port franchisees, incentivising their participation.

  3. Minimise waste and cost in the chain by cutting out the steps in the middle.

What currently limits us from achieving these unit economics?

  • Lack of capacity, leading to lack of supply - We are currently unable to take on many more boats into our chain, as we have come close to maximising the capacity of our existing port partners. This is currently the main bottleneck to scaling, as we have both boats and buyers wanting to participate in our chain. We must therefore invest to increase our fulfilment capacity while accelerating our efforts to determine the port franchisee model that can be rolled out across all UK ports.

  • Lack of buying power - Packaging and fulfilment costs are currently considerably high due to the relatively low volume of fish that is running through our chain. When each port is running at capacity - landing, trading and fulfilling the catch of all the boats through Pesky's platform - these costs will rapidly reduce, with packaging costs dropping by up to 75%.

  • Lack of technical infrastructure to deliver automated processes at scale - current processes of consolidating, trading and fulfilling are too manual to scale without a technical architecture to support automation.

  • Port franchisee proposition not fully defined - The franchisee model will help bring fulfilment costs down considerably from where they are today as well as moving them to a variable cost rather than a fixed overhead.

Where we will invest the £2m from this round in order to achieve our objectives and rapidly accelerate growth?

1. Launch Devon site - £80K - This will deliver an immediate injection of supply into our platform, the capacity to deliver to a nationwide customer base, as well as the test lab to define our port partner processes as quickly as possible before expansion across other ports. Landings and therefore availability will increase 5x from June 2019 levels - fuelled by high quality landings from inshore vessels that we have already identified, while we will use the app to expand to our growing pipeline of non-London restaurants. We will invest £50K of Capex to equip the site as well as provide the provision for testing of grading equipment and packaging. There will then be an ongoing £3.7k/month fixed overhead.

2. Supporting operational spend - £300K - Ahead of achieving the scale required to meet the unit economics defined above, we will invest in supporting delivery costs in order to remove as many barriers as possible between supply and demand. This will mostly affect the trade to the added value channel, who will be sourcing from an average 2.4 ports per delivery and therefore requiring additional spend on packaging and courier distribution. 

3. Build product and technical architecture - £1.3m - Our largest area of spend in this round will be to develop the product and technical architecture required to scale our business into any port. This amount includes the hire of a phenomenal CPO who will be solely responsible for the delivery of our architecture and the management of their development team. For more information, please click here.

4. Pesky Team - £300K - Supporting the addition of a market analyst, wholesale manager, ops support and CFO. For more information, please click here

Round financials (18 months)

Key Points ahead of further face-to-face discussion

  • Marketplace throughput relates to the final value of fish that is paid to the fisherman

  • Service fee income = Revenue - throughput = 20% fee + added value £/kg mark up + delivery fee.

  • We are already engaging with a small handful of UK aquaculture producers about the viability of bringing them onto the platform. Our preference would be for Wester Ross Salmon in Scotland as well as a handful of oyster producers. 

  • Given the demand we've seen internationally, it is probably that we will have set up one export channel within 12 months of closing the round, focussing on the catch from one port and perhaps even only 2 or 3 species.

5 year projected financials


Key Points ahead of further face-to-face discussion

  • Once we have established the port roll our model, our intention will be to raise the necessary capital to expand rapidly across UK ports before end of 2021 and our first international expansion in 2022.

  • We will begin to commercialise data services in 2022, having tested and released free versions ahead of then.