Khyati Patel
Rutgers Business School
Ravi Vadapalli
Keep this story going! Share below!
Adama Partners is a venture capital firm that seeks to invest in the gem and jewelry sectors. The firm was founded in 2007 and is based in New York, New York. It has partnered up with Blue Nile, biggest diamond buying platform. In April 2018 they launched M. Monroe, a fine jewelry brand, inspired by Marilyn Monroe and in 2016 launched Mondiamo. Mondiamo is the innovation of the company that will be focused on for this project topic.
When someone wants to sell their jewelry, the place they go are usually pawn shops. Pawn shops are notorious for being aggressive, to the point that the experience is not pleasant or even hostile. Some disreputable pawnshops have even gone so far as to not let someone leave until they sell their item to them. More often than not, reputable pawnshops only offer a very low return for someone’s jewelry. Mondiamo provides a platform for clients to sell their jewelry without facing any hostile behavior and a much easier process. It provides clients with a more customer friendly approach and is easy access to all, without the hassle of going to a store and getting scammed.
The logo for the company has a hummingbird on it (Appendix B), which is the perfect representation of the company’s main focus. The hummingbird is a creature that travels great lengths to find the sweetest nectar to enjoy. Just like the bird, when a person sells their jewelry, they want to seek out the best deal, and Mondiamo aims to provide that. The hummingbird represents the client and Mondiamo aims to satisfy the clients need.
Mondiamo already had the foundation to get this entity up and running, with the backing of the parent company Adama Partners. The CEO (Ori Levy) and VP of Operations (Shai Levy) decided to pursue this innovative business, but before they could go ahead, they needed approval from the shareholders of Adama Partners. A shareholders meeting was called and the idea was pitched to them. After rounds of questions and answers, and voting on the project, the new business was given the green light.
One of the things they had to do was hire key individuals that were essential for this company’s success. Among the key individuals was the Senior Director of E-commerce, to set up the e-commerce website, and the Operations Manager, to oversee the day to day operating of the business. Since Adama Partners was launching a new entity, they also needed to get it registered before they started conducting business; the entity is registered under Adama Capital I DBA (Doing Business As) Mondiamo. Another important aspect was securing the funds needed to launch this business. Getting the funds for this business was not a problem because TOMS Capital, a hedge fund, was already ready to invest.
Launching Mondiamo has been a profitable business model. It takes jewelry that people no longer wish to hold and profits from it. As stated by an employee, “We purchase the piece, unmount the diamond, clean and polish the stone, get it certified and then sell it back into the wholesale market.”
Once Mondiamo decides to buy the diamond piece from the client they mail that client all the shipping material, at no extra cost, to ensure the piece is delivered to them without going through any harm in route. The box coming back to Mondiamo with the client’s product is also fully insured, to product against any loss of the product.
The distribution goal of the company is to have a quick turnover, not holding the diamond for longer than 100 days once acquiring it from a client. The reason for this is due to the increase in the risk of market fluctuations decreasing the value of the stone, plus the cost of capital rises as the inventory sits unsold. They want to maximize profit, so having a quick turnover is essential. One factor that affects this business is the unpredictability of the diamond prices. The market is constantly growing through fluctuations, which affects the buying and selling of diamonds.
Until the November of this year Mondiamo never marketed itself. This month they started to market itself on Google, Facebook, etc., which they hope will further increase their business and bring in more clientele. The business was growing without any marketing spend. Now, they are working toward the expansion of their distribution channels and building a bigger network of clients.
Most businesses and companies have their goals aligned with some part of the 17 Sustainable Development Goals. These 17 Goals are “the blueprint to achieve a better and more sustainable future for all”. Mondiamo can be seen linked to four goals of the UN Sustainable Development Goals: Goal 8 (Decent Work and Economic Growth), Goal 10 (Reduced Inequalities), Goal 16 (Peace, Justice and Strong Institutions), and Goal 9 (Industry, Innovation and Infrastructure).
Goal 8 is achieved by aiming to achieve economic growth. Since this entity was only created in 2016, it is still creating a name for itself and looking to sustain itself, as well as grows. Mondiamo follows this goal by aiming to create a work environment, that not only is safe but enriching for an individual. The entity was launched to reduce the inequalities clients face when trying to sell their jewelry, addressing UN Sustainable Development Goal 10. Mondiamo quotes prices that are consistent with the marketplace, so clients are getting exactly what they deserve and nothing less. As with Goal 10, Mondiamo tries to prevent exploitation of their clients by being an effective, accountable, and transparent entity, adhering to Goal 16. The main purpose of the creation of Mondiamo is addressed with Goal 9. Mondiamo’s main focus is buying second hand diamonds but putting the recycled diamonds back onto the market. The objective of Goal 9 is to repurpose old material and this is exactly what Mondiamo does. It takes the diamonds people don’t want, turns that diamond to something someone is willing to buy, and puts it back to use.
Get stories of positive business innovations from around the world delivered right to your inbox.
Sapna Patel, VP of Operations
This organization is a venture firm that is small, consisting of about 18 employees. We will be working with our point of contact as well as the design team of the organization.