Executive Summary

SmokeSignals.ng is a premium tobacco and smoking lifestyle brand headquartered in Lagos, Nigeria. Founded with a vision to elevate the smoking experience, the company offers a curated selection of high-quality tobacco products, accessories, and personalized services. From cigars and hookahs to vapes and rolling papers, SmokeSignals.ng serves a diverse clientele ranging from casual users to connoisseurs. Mission Statement To redefine smoking culture in Nigeria by delivering premium products, exceptional service, and a community-driven experience rooted in sophistication, authenticity, and choice. Products & Services - 🥇 Premium Tobacco: Cigars, cigarettes, shisha, and custom blends - 💨 Vaping Essentials: E-liquids, devices, and accessories - 🎁 Lifestyle Accessories: Lighters, ashtrays, rolling papers, and gift sets - 📦 Delivery & Logistics: Same-day delivery in Lagos, nationwide shipping - 🧑‍💻 Concierge Support: Live chat and WhatsApp assistance for product selection and bulk orders Target Market - Urban professionals and lifestyle enthusiasts - Hospitality businesses (lounges, hotels, clubs) - Corporate clients seeking branded gifts or bulk orders - Online shoppers seeking convenience and discretion Competitive Advantage - 🌍 Global sourcing of premium tobacco blends - 🛒 Seamless e-commerce experience via www.smokesignals.ng - 🚚 Fast, discreet delivery with flexible pay Inventory & Product Line 35% Expand premium tobacco and accessories portfolio Technology & Platform 20% Upgrade e-commerce platform, CRM, and mobile app Marketing & Branding 25% Digital campaigns, influencer partnerships, brand activations Logistics & Fulfillment 15% Strengthen delivery network an A visionary entrepreneur with deep roots in Nigeria’s lifestyle and retail sectors, Ms. [Name] founded SmokeSignals.ng to redefine the smoking experience in West Africa. With a background in luxury brand management and e-commerce, she brings a sharp eye for quality, customer experience, and cultural relevance. Her leadership has positioned the company as a trusted name in premium tobacco and accessories. - 🧠 Expertise: Brand strategy, product sourcing, customer engagement - 🌍 Vision: Build a pan-African smoking lifestyle brand rooted in authenticity and sophistication - 📈 Achievements: Grew revenue 65% YoY, launched nationwide delivery, built strategic B2B partnerships 1. Transaction Overview SmokeSignals.ng is seeking a strategic investment to accelerate growth, expand product offerings, and enhance logistics infrastructure. The proposed transaction involves an equity investment in exchange for a minority stake in the company. - Investment Type: Equity financing - Amount Sought: ₦250 million (~$160,000 USD) - Use of Funds: Inventory expansion, tech upgrades, marketing, and regional logistics - Investor Stake Offered: 20% equity - Valuation: ₦1.25 billion pre-money 2. Use of Proceeds The capital raised will be deployed across key growth areas: Inventory & Product Line 35% Expand premium tobacco and accessories portfolio Technology & Platform 20% Upgrade e-commerce platform, CRM, and mobile app Marketing & Branding 25% Digital campaigns, influencer partnerships, brand activations Logistics & Fulfillment 15% Strengthen delivery network and warehousing Legal & Compliance 5% Regulatory filings, IP protection, and licensing 3. Investor Benefits - 📈 Growth Potential: Access to Nigeria’s expanding lifestyle and luxury consumer market - 🤝 Strategic Role: Opportunity to advise on brand positioning and regional expansion - 💰 Exit Options: Share buyback, secondary sale, or IPO within 5–7 years - 🧠 Brand Equity: Association with a culturally resonant, premium lifestyle brand 4. Exit Strategy SmokeSignals.ng anticipates multiple exit pathways for investors: - Strategic Acquisition: By a regional tobacco distributor or lifestyle conglomerate - IPO or Private Placement: Within 5–7 years, depending on market conditions - Share Buyback: At a premium valuation after 3–5 years of growth 🌍 Market Overview – Nigeria’s Premium Tobacco & Smoking Lifestyle Sector 1. Market Size & Growth - Nigeria’s tobacco products market is projected to reach ₦2.3 trillion (US$2.3 billion) by 2025, with a CAGR of 10.57% through 2030. - The smoking tobacco segment alone (including roll-your-own and pipe tobacco) is expected to generate ₦239.2 billion (US$239.2 million) in 2025. - Growth is fueled by rising disposable income, urbanization, and a shift toward premium and flavored products. 2. Consumer Trends - 📈 Premiumization: Consumers are increasingly drawn to high-quality cigars, flavored tobacco, and artisanal accessories as symbols of status and lifestyle. - 💨 Vaping & E-Cigarettes: E-cigarette use is growing, with 11.8% prevalence among adults, especially in urban centers like Lagos. - 🎯 Youth Engagement: Nearly 20% of Nigerian youth aged 11–23 have tried e-cigarettes, indicating a rising trend in alternative smoking products. - 🧠 Lifestyle Positioning: Smoking is often associated with leisure, luxury, and social identity, especially among professionals and nightlife patrons. 3. Regulatory Landscape - Nigeria permits the sale and use of e-cigarettes, heated tobacco products (HTPs), and nicotine pouches, with no age restrictions currently enforced. - The National Tobacco Control Act (2015) mandates health warnings and restricts public smoking, but enforcement remains inconsistent. - Excise taxes on HTPs and nicotine pouches range from 10% to 50% of cigarette tax rates. 4. Distribution Channels - 🛍️ Online Retail: Rapidly growing, especially among urban consumers seeking convenience and discretion. Online sales are projected to account for 0.2% of total revenue by 2025. - 🏪 Offline Retail: Dominates the market, including kiosks, lounges, and specialty stores. - 📦 Direct-to-Consumer Logistics: Same-day delivery and curated packaging are becoming key differentiators for premium brands. 5. Competitive Landscape - Dominated by global players like British American Tobacco (BAT) and Philip Morris International (PMI), but niche brands and local startups are gaining traction. - Over 2,100 new tobacco SKUs were introduced in Nigeria in the past year, reflecting high product innovation and consumer appetite for variety. 6. Opportunities for SmokeSignals.ng - 🧑‍💼 Urban Professionals & Nightlife Culture: Targeting Lagos’ vibrant social scene with curated experiences and premium offerings. - 📦 Subscription Boxes & Loyalty Programs: Capitalize on consumer desire for exclusivity and convenience. - 🌐 Digital Expansion: Strengthen e-commerce and mobile platforms to capture tech-savvy consumers. - 🤝 B2B Partnerships: Collaborate with lounges, hotels, and event planners for branded activations and bulk sales.