HILOS takes 15% of brand unit cost at 100% gross margin
Elias Stahl · #113 HILOS: Is This The Perfect Business? · Mar 4, 2025 · at 7:35
Elias Stahl breaks down the platform economics and fee structure of HILOS to investor Victor Gutwein on The Pitch.
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“15% of the unit cost for the brand. So if it's a hundred dollars, let's say, it would be 15 dollars. Of everything sold. That is a hundred percent margin because we didn't actually pay to fulfill that in any way.”
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More from Elias Stahl
Stahl: HILOS operating profit margins will exceed Google and Amazon next year
“The, if you look at profit, we are, our operating profit by next year will be over. More profitable than Google or Amazon, because we don't fundamentally invest or hold the costs of the things that we fulfill for brands.”
HILOS projects $3M in revenue next year, $16M the following year
“Right now we're looking at three million in revenue next year from the brands we currently have signed and under contract, and we believe we have a very strong pathway to get to sixteen million the following year.”
Stahl: HILOS holds exclusive deal with the world's largest 3D printer
“We have incredible partners that the largest, most industrially scaled, three D printing partner in the world that we have an exclusive relationship with.”
Stahl: Revenue multiples are inappropriate for valuing seed-stage startups
“I think revenue multiples for a seed round is too early. That's more of a series A conversation.”
Stahl: AI-driven on-demand footwear completely disintermediates traditional shoe brands
“It completely disintermediates brands. In a way that's pretty significant for the industry.”
HILOS supply chain network turns around on-demand footwear in 72 hours
“So the way that our supply chain works is we essentially have printing partners that maintain very shallow levels of inventories at assembly partners that are each around a certain product type. They're able to then Turn around things in 72 hours.”