Expertflow Investors/ M&A/ Private Equity/ VC
This page reflects Expertflow's ownership structure as per April 2022, as well as what it's future plans are regarding future investors or M&A activities. Figures are approximative, more details will be provided if there is an initial strategic fit, and with an NDA. Visit our Crunchbase Profile here.
Ownership, revenue and earnings
Strategic assets are our connectivity to,
- CRM solutions (Microsoft Dynamics, SAP, Salesforce,..)
- UC solutions (Cisco, Microsoft Teams, Freeswitch.)
- chat platforms (Whatsapp, Facebook Messenger, SMS providers, Viber, Telegram,..)
- AI engines (IBM Watson, Google Dialogflow, Amazon Lex, rasa.ai, Microsoft Cognitive Services,...)
- ... as well as our strong and diverse customer base primarily in MEA and South Asia, mainly large banks and mobile operators.
Expertflow was boot-strapped and has no external investors. All subsidiaries of Expertflow have a mutual franchising/ mutual exclusivity agreement for a certain territory (Middle East, Africa and South Asia) with a notice time of on year. The earnings of the entity in the territory are shared between the local Managing Director and Expertflow LLC Switzerland. There are no exclusivity agreements for non MEA/ SouthAsia regions (representing 500 kUSD). All intellectual property belongs to Expertflow Switzerland.
Most payments by customers are made by clients to Expertflow Switzerland (3 Mio USD annual revenue until 2021, from 2022 on, this will be 5 Mio annually). An additional 1 Mio is collected locally (Egypt, Maghreb, Pakistan) to pay local expenses - all earnings are then sent to Switzerland. Revenue is 90% Expertflow's own software and services. Resale of third party products represents less than 500'000 USD.
Expertflow re-invests all it's earnings into software development, currently 500'000 USD p.a. We plan to continue doing so.
Expertflow started as a systems integrator specialized on large corporate customer service contact centers in MEA and South Asia, primarily on the basis of Cisco. Many of Africa's largest banks and Operators are customers of Expertflow. By 2080, Africa, India and Pakistan are expected to have a total population of 4.6 bn of a World population of 9.3, so 50% of the planet's population. As the population in these countries gradually grows out of poverty, it will start consuming customer service software (via banks, operators, government entities,...)
The company has 160 employees, of which 70 full-time SW developers, 95% of which are located in Pakistan, India, Egypt, Morocco, Kenya, Nigeria, South Africa.
Since 2015, Expertflow has been developing software around Cisco Callcenters, for which it won global awards. This on-prem software has been deployed in it's own customer customer base, but also globally (clients in Taiwan, Bangkok, the US, Ukraine, Portugal, Panama,...).
Our contact center software can be consumed by companies clients on a pay-per-use subscription basis (ranging from 10 to 140 USD per user per month). The heart is our contact center, Hybridchat and customer interaction solution, the UC portion can be provided by EF or run as a service on top of Cisco, Microsoft Teams or Freeswitch. We also connect to major CRM solutions such as Microsoft Dynamics, Salesforce, Oracle CX and Sales Cloud, SAP.
We now provide our solution as a SaaS. This is not yet common in the UCaaS Market in MEA and South Asia, and if served, then at the wrong price level. Also, there are no relevant references or local points of presence/ compliance with local regulatory frameworks especially in countries that have restrictive requirements regarding the use of VoIP.
We have no plans to acquire any companies or assets but would be interested in regional partnerships, in particular where we have little presence such as in the Americas, Europe or East Asia.
Current valuation, investors and exit strategy
We value Expertflow at 15 Mio USD. Typical valuations for cloud CC companies are 6 times annual revenue.
We don't need cash for our immediate growth before 2024. We would like to find an investor for a complete or partial exit at any time before 2037 (the year of retirement of Andreas Stuber), and will be more interested over time. Additional investment could accelerate our growth, so we would consider that if the strategic fit and valuation are right. Another reason why we're not yet looking for an investor is that we think the valuation will increase until 2025, as we will demonstrate our capability to acquire customers in the USA, as well as more deployments of our cloud solution.
We see potential exits / strategic investors in the following domains:
- UC companies like Cisco, Twilio, Microsoft, Amazon Connect that lack Livechat, CRM connectors, Customer Data repository WebRTC capabilities
- Livechat companies (intercom, Livechatinc, LiveAgent) that lack Cloud Contact Center capabilities
- CRM companies that would like to acquire cloud contact center/ customer service/ chat capabilities (Microsoft Dynamics, Salesforce, Oracle, SAP,...)
- Chatbot/ NLU/ AI companies that require UC capabilities to integrate into corporate customer service environments
- US, European or East Asian companies in the customer service sector that seek a presence and access to corporate clients in Africa, the Middle East and South Asia
For financial investors for which we might be a fit, we would seek:
- a board-level exchange
- a joint long-term vision before 2037: Either an exit scenario, or building up an executive board that can take over
- shared vision as for the perspective of Expertflow, as well as a realistic investment/ business plan. This could be the establishment of an executive board in Europe, and more rapid strenghtening of our Cloud Customer Service offering in MEA and South Asia.