Company
Founded in 2015, Xelpmoc Design and Tech Limited (Xelp) is an end-to-end professional & technology service provider with a keen focus on product development, data science and analytics. Xelp’s core competence lies in building next-generation technology in Artificial Intelligence & Machine Learning Space, with a keen interest in Natural Language Processing & Data Analytics. The company primarily caters to e-commerce, education, transportation & logistics, recruitment, fintech, social networking, among several other industries.
Interesting story behind the name – it’s the reverse of COMPLEX – XELPMOC : So the motto being trying to solve complex problems with ideal solutions.
Management
Key Members:
- MD & CEO: Sandipan Chattopadhyay – MD & CEO, Founder – Expertise in tech devpt of several start-ups, credited with JUST DIAL success (Growth of 160X), co-founder of Moneycontrol and built the first website for TATA. Very honest and has excellent exposure in the field. Worked at Tata motors, Standard Chartered Bank, Deutsche Bank, Edelweiss Business Standard etc. “Red Hat Innovator Award 2019”. IIM Calcutta alumni and a statistician from ISI, Calcutta.
- Chairman: Mr Tushar Trivedi (since 2018) – Expertise in banking (Experience @ Kotak Mahindra and Citi Bank)
- Srinivas Koora – Director and CTO – Deputy CFO at Just Dial.
- Jaison Jose – Director – Expertise in HR and business development.
**History at a glance: **
- Started in 2015 as a 24-person company.
- 3 Promoters: Sandeepan Chattopadhyay, Rajesh Ramlal Dembla and Srinivas Koora
- 2015: First technology services agreement with Fortigo Network Logistics Private Ltd and made an investment in the company.
- 2017: First agreement with the Govt Org – Food Safety and Standards Authority of India, GOI
- 2019 – Went public at NSE and BSE
- 2020 – Operational Breakeven and Net Profit (Zero debt company)
IPO
- Started in 2015 as a 24-person company.
- 3 Promoters: Sandeepan Chattopadhyay, Rajesh Ramlal Dembla and Srinivas Koora
- 2015: First technology services agreement with Fortigo Network Logistics Private Ltd and made an investment in the company.
- 2017: First agreement with the Govt Org – Food Safety and Standards Authority of India, GOI
- 2019 – Went public at NSE and BSE
- 2020 – Operational Breakeven and Net Profit (Zero debt company)
Business Models
- Focused on building the next generation of technology in Artificial Intelligence (AI) and Machine Learning (ML), with a keen interest in Natural Processing & Data Analytics.
- They work with Govts, Businesses, Individuals and Startups and help them take advantage of their data as technology partners and consultants
- Building AI and ML tools for solving problems powered by Natural Language Processing and in house developed Intelligence Data Management System.
** Focus on Startups **
- Tech deployment for multiple startups at early stages: Give tech solutions and charge fee as well as take equity if the start ups are promising with potential – this is a very good growth model.
- Startups – Focusing on HEAL sectors – Health Education Agri and Livelihood – Key GDP contributors but underpenetrated and full of potential for AI and ML in India. They offer expertise and tech support as well as buy equity in start ups – huge GROWTH potential.
- 4TIGO – (Uber for Trucks in India) – Freight exchange facilitator for the truck ecosystem in india – (Nandan Nilekani – co founder of Infy and startup giant has stake in this too) – Xelpmoc provides tech solns as well as has equity and doing very good (already the co is growing very well with good revenue generation)
- Mihup - Voice tech sector – Mobile assistant using ML and AI for human-machine and machine-human interaction
- Snaphunt – HR sector – Singapore based south east Asian talent hunt programme
- Woovly – social media sector – to bring people together with common bucketlist
- Pencil – publishing sector – to help authors and writers to upload script, design etc for publishing
They have a pool of around 10 – 20 startups in focus all the time with promising potential.
Details, investments and current fair value can be obtained from their AR 2019-20.
As on March 31, 2020, they had invested around 3.36 crore Rs into startups and the fair value on that date stands at 34.8 crores.
The startup ventures has already given them ~10X returns on investments with a YOY growth of 27.33%.
Growth Potential:
- India – 3rd largest start-up ecosystem. ~9000 start ups incepted between 2014-2019.
2.Xelp focuses on High growth sectors (CAGR > 35-50% since 2014) - Direct equity investing in startups can give manifold returns
Current Startup Investment Sectors:
AI/ML : 27%
IoT : 23%
Big Data Analytics : 21%
Block Chain: 7%
AR/VR : 5%
Drones: 4%
Others: 13%
Financials
Key highlights:
a. 13.6% QoQ increase in Income
b. 258% increase in PAT
c. Debt free
d. Breakeven achieved
f. EBIDTA - 158% QoQ increase and will be positive this year
g. Revenue - 7.5% QoQ increase
h. Continuous increase in Sales.
Key Risks
- MicroCap
- Startups may not perform
Disclosure - Invested for long term.
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