Expertflow Investors/ M&A/ Private Equity/ VC
This page reflects Expertflow's ownership structure as per April 2021, 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.
Ownership, revenue and earnings
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). An additional 1 Mio is collected locally (Egypt, Maghreb, Pakistan) to pay local expenses -all earnings are then sent to Switzerland. Revenue is 80% 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.
Current strategy and assets
Expertflow has 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.
The company has 105 employees, of which 35 full-time SW developers, located in Pakistan, India, Egypt, Morocco, Kenya, Nigeria, South Africa. 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,...)
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,...).
In summer 2021, we plan to release our SaaS/ UCaaS/ CCaaS version of our software, that can be consumed by corporate clients on a pay-per-use subscription basis (ranging from 10 to 140 USD per user per month). The heart is our Hybridchat solution, the UC portion is based on Freeswitch - see Cloud Contact Center for Africa, Middle East and South Asia (expertflow.com) . In 2021, we plan to onboard only customers in MEA/ South Asia for UC with local POP's (point of presence/ local voice entry points), and globally for the Livechat solution. We believe the UCaaS Market in MEA and South Asia is underserved, 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 LLC at 12 Mio USD.
We don't have a need for cash for our immediate plans, so we will not invest into M&A activities. We would like to find an investor for a complete or partial exit at any time before 2037 (year of retirement of Andreas Stuber), and will be more interested over time. An additional investment could accelerate our growth, so we would consider that if the strategic fit and valuation is right.
We see potential exits / strategic investors in the following domains:
- UC companies like Cisco, Twilio, Microsoft 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
- 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.