Kapio Cloud Investment Opportunity

 

In Brief 

  • Kapio Cloud is a disruptive, SaaS pay-per-user system offering cloud-based, multi-lingual, real-time reporting for contractors & clients in the construction sector
  • The software is currently in use on over 20 construction projects worth $35 billion in Europe, South America and Southeast Asia
  • Optimise-International, the parent company is seeking further investment to increase users and scale the business into existing and new markets
  • Currently the construction sector is worth $10 trillion but is expected to increase to $14 trillion by 2025, and up to $17 trillion by 2030

The Problem

  • Construction Sector hasn’t seen productivity gains in 80 years due to outdated paper-based processes
  • Currently the global construction sector loses $1.6 trillion per year in lost productivity

The Solution

  • Kapio Cloud digitises construction project management processes, reduces management costs, raising productivity and profits while reducing costly disputes
  • Contractors, suppliers, clients and financiers can use the software for €1.99 per user, per day for unlimited projects
  • No contracts. No upfront fees. Money-back guarantee.
  • Kapio Cloud is a disruptive, project control platform designed to digitise the entire reporting processes of the $10 trillion construction industry.
  • The SaaS platform standardises and digitises core business and project processes, giving construction project stakeholders a fully-flexible platform with real-time sharing, storage, analysis and management of information, up and down the supply chain.
  • Collaboration between teams is made easy. Construction companies using Kapio Cloud can generate, read, approve and reject reports in any combination of 20 languages, over multiple projects and multi-cultural teams.
  • For construction contractors this should mean reduced reporting costs and contract disputes, more control, greater collaboration, quicker payments and greater profits.
  • For clients and stakeholders such as government, financiers and insurance providers, it means greater transparency, a real-time view to assess and maintain contractual integrity and easier handover processes.
Intended impact

According to McKinsey, on average, large construction projects run over time by around 20% and over budget by up to 80%. Construction lags far behind other sectors in the use of digital processes. Rather, many companies continue to use paper and PDF-based methods for reporting purposes. Kapio Cloud addresses this by replacing paper-based processes with digital data information capture, storage, and sharing.

On any construction project, a construction team can amass mountains of data (typically in our experience as PDFs, Excel or Word format) just to get paid each month.

These outdated and cumbersome processes can increase data entry errors and admin costs while delaying payments. This has adverse effects, especially when dealing with multi-million dollar contract disputes, which can rely on hard to search material, taking a long time to resolve.

At project end, the construction company must assemble and hand over relevant documentation to the client. Kapio Cloud digitises the entire process, reducing a lengthly, cumbersome and costly task to mouse clicks.

Accomplishments

• May 2016 – Website launched.
• May to Nov 2016 – Software developed.
• Sep 2016 – Raised circa €68k from founders & investors.
• Nov 2016 – Reporting beta version launched.
• Nov 2016 to March 2017 – platform integrated to SaaS.
• Jun 2016 – Reporting software field tested by ICOP, (Italian Engineering Foundation).
• Dec 2016 – Software field tested on multiple projects.
• 2016 to 2018 – Raised over €500k from friends & family in equity financing.
• Mar 2018 – Document Control module developed and tested.
• Jun 2018 – New website launched.
• Jul 2018 – Document Control launched.
• Sep 2018 – Dashboards launched.
• Nov 2018 – EFFC, European Federation of Foundation Contractors, representing 16 European National Federations names Kapio Cloud as Associate Member.

Monetisation strategy

Kapio Cloud is a subscription-based model, designed on a “pay-as-you-go” basis.

Revenue is derived from software subscription sales to any user that requires transparent evidence of workflows and progress summaries integral to every construction and engineering project (e.g. architects, planners, contractors, engineers, suppliers and clients).

The annual construction sector generates €10 trillion of which 1.5%, or over €1bn is allocated to IT. With a sector that is due to grow to $14 trillion by 2025, which already employs over 250 million people, this is a large and growing potential customer base.

A major infrastructure project might cost several billion Euros. A project of this scale could net around 1,600 users, with an average spend of €3/day, generating revenues of €1.75m. Just 7 similar projects in each of 20 different countries would achieve 0.25% market share.

Use of proceeds

Total planned spending on sales, marketing and advertising is approximately €4.5m to 2022.

This represents a very aggressive 43% of income ploughed back in to grow the business in 2019, before settling to 11%, by 2022.

The Kapio Cloud team hopes to grow to 80 people by 2022, with approximately 20 personnel added each year.

Key hires will be in sales and marketing, supported by customer service staff. We will also increase the development team to produce add-on revenue features.

NOTICES

Please note, the company currently has outstanding loans totally circa €762,567.60 (current conversion as loans in Danish Krone). These loans are over a number of tranches, which have been issued from May 2016 until last month. The loans accrue 5% annual interest and mature from 2022 until 2024 (With the first loans maturing in 2022 and subsequent loans in following years). The current value of outstanding loans plus accrued interest is approx. €816,367.56. The loans are due in 5 instalments, 20% on the maturity date and a further 20% in each following year. Investor funds will not be used to repay any of these loans.

Current Clients/Users

• ICOP, Italian Foundations Specialist – 5 projects – 350+ employees.
• Refico – A leading Vietnamese property developer – 100 users.
• Terratest – Top South American Foundation Engineering firm – employs 1,400+ engineers – uses Kapio Cloud on 6 projects w/6 Clients on-boarded.
• Aarsleff, leading Danish UK/Baltic contractor w/ over 6,000 employees & c. €1.5 billion/year, currently trialling Kapio Cloud.
• Metisplan – UK-based consultant forensic planner collaborating on API builds for Primevera P6 and MS Project, to integrate and automate data exchanges with Kapio Cloud.

Contact us for more information

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For more information about the investment opportunity

Every construction project is bespoke.  Kapio Cloud Lets users customise project reporting and document control to fit any contractual risks. A SaaS solution available by daily subscription.  Tested in the field. Used on projects worth over $35billion. Now in 20 languages. Find out more.

Capital at risk

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.