Klymat Ltd

Overview

Executive Summary:

Klymat is an innovative SMaaS (Software & Mobility as a Service) Platform operating in the B2B segment offering Business Mobility solutions to Companies and their Employees.

What do we do?

Klymat transforms the way businesses and employees think about travel and mobility, it brings together innovative technology and outstanding user experience.

The sector is in turmoil, confronted with regulatory, environmental and social change which demands a re-imagined model of delivery. This market transition of up to 1.8m users will reward the winners, the change adopters, not the doubters or the change resistors. The evolution has already started and Klymat is positioned at the forefront of this wave of change.

Klymat invites Investors to participate in this transformation by outlining its plans to deliver attractive returns on investment post MVP stage and more importantly at potential Exit stage. Multiples in this market segment are significant.

Klymat Vision:

Transforming the way businesses and employees think about travel and mobility.

Notable Achievements and Highlights:

• Concept Designed, Tested and Demonstrated
• Advanced Assurance Received for SEIS/EIS
• Business trademark established for UK & European markets
• Member of Priceless Planet Coalition
• Alignment with Supply Chain explored, qualified with distribution strategy established
• Customer(s) identified to undertake MVP testing
• Invited to innovation labs to test customer journey and showcase Klymat vision.

Problem and Solution

Problem

Traditionally, company fleets have been:

• Expensive
• Long-term
• Inflexibile
• Hard to manage.

Organisations also spend a lot of money on transportation and travel for employees and have lacked the tools to manage these seperated overheads effectively.

Challenge

It is currently difficult to combine these decentralised costs, making their measurement and control impossible without integrating an organisation's fleet management and employee travel services.

Typically, vehicles are leased for 3-5 years, locking organisations into contracts they don't necessarily need. The high cost of an early exit from a lease is seldom negotiable.

Businesses are also under pressure to cut emissions. A fleet of diesel and petrol-powered cars on long term leases only makes this task more challenging.

Solution

The term 'business mobility' has long been an intergral part of fleet management, but it has evolved into something far more extensive in today's ever-changing world.

Employee mobility now stands as a new way of thinking, a transformative, on-demand philosophy that can unlock new opportunities to deliver the most efficient and sustainable transportation whenever required.

Klymat’s dashboard provides crucial management information on existing fleets and staff journeys – whether by car, plane, boat or train. And the downloadable app lets employees choose their options within an organisation’s travel policy.

By doing so, public and private sector organisations can better manage their environmental, social, and governance (ESG) responsibilities while analysing a significant financial cost centre in real-time.

Competitive Advantage

Klymat’s innovative SMaaS platform means it has a significant early adoption advantage to attract B2B clients who are looking for long term sustainability and enhanced user experience for their employees aligned to ESG & Carbon Reduction aspirations.

Long term lease providers including Lloyds TSB, Arval, Leaseplan and Alphabet do not provide taxis, electric bikes or even flying cars.

Similarly, rental companies such as Avis, Hertz and Thrifty do not arrange travel by boat, plane or train.

Conversely, travel companies including Hogg Robinson, American Express and Expedia focus on various modes of travel to exclude leasing and rental of vehicles

Klymat bridges all these requirements through a single handheld device and consolidates all payment to a single monthly invoice.

Highlights & Milestones

• Developed a prototype platform and app in a test environment, succesfully demonstrated to 2 potential clients/collaborators with positive reaction and follow up requests to collaborate, establish links to the Klymat infrastructure and services.
• Invited by MasterCard to join their Global 'PriceLess Planet' Coalition as a key payment provider, making the Klymat monthly invoice plan a realistic and achievable opportunity to differentiate from the competition.
• Advanced discussions have taken place with key suppliers and collaborators regarding the potential opportunities that could be derived from the creation of a groundbreaking payment platform with distinct market advantages, these include Capital Efficiency and ESG monitoring and performance aligned to Carbon Output and Measurement for reporting purposes.
• Klymat has potential suppliers ready to connect to its API that are willing to partner with its SMaaS platform. Klymat can provide details of discussions with the following entities:
  • Sixt
  • Enterprise Holdings International
  • Flexxilease
  • Light Bulb Associates

Key Clients

Klymat is now at MVP stage and is discussing/negotiating partnerships with B2B clients.

Prospective clients, including major corporations and large companies alongside public sector organisations, will use Klymat to track every vehicle in their fleet and every employee’s journey, whatever their mode of transport. The software calculates the entire cost of employee mobility.

Initial discussions and demonstrtaions have been undertaken by sharing the Klymat app prototype & solution, resulting in strong interest from the following:

• National Utilities provider (Invitation to Tender)
• UK Fleet & Vehicle Management Service Provider (Invitation to Collaborate)
• Facilities Management Provider (Interest in the proposition when launched)
• Insurance Brand/Provider (Interest in collaboration, insurance provision & fleet)
• Driver Support Services Provider (Interest in exploring potential collaboration)

Current & Future Projects

Phase 1 - Completed

Concept: App prototype built, tested and working

Phase 2 - May to September - 2022 (Planned)

MVP: Complete the software build with funding and launch in UK

Phase 3 -October to December 2022

Deliver: Raise visibility, convert existing new business opportunities

Phase 4 - 2023 & Beyond

Growth: EU and North America markets launch

Investment Offering

Following software prototyping and a UK and EU trademarked business, Klymat needs £1 million to launch its transformative mobility service at a premoney valuation (independently assessed) of £6.9 million.

It's divided this into a:

1. Pre-seed fundraising of £375,000 (15%) with shares offered at a discount to the pre-seed valuation of £2.5m
2. Followed by a subsequent seed-stage funding round of £625,000 aligned to the full pre-money valuation of £6.9m

Its goal is to achieve breakeven within three years (2025)

In the Growth phase based on planned margin and subscription revenues the valuation is expected to rise significantly with potential to deliver between 10-15x ROI over 5-7 Years.

Use of Funds

To achieve Minimal Product Viability (MVP)

Klymat has allocated £168,750 to completing the build of the existing App prototype and software, that are already working in a test environment.

Visibility activity

At the same time Klymat will intensify its visibility activity using a combination of:

• Current prospective clients
• Tactical advertising in accountancy
• Environmental and human resources journals
• LinkedIn
• Strategic promotional activity on National Radio.

To supplement the LinkedIn activity, Klymat will outsource the follow up activity to a tried and tested partner it has worked with in the recent past. This activity will arrange meetings and presentations as the software goes through the development phases with businesses Klymat are already in contact with and who have expressed an interest in taking matters to a formal engagement stage – but want to see and experience a full working model first.

Breakdown of the use of funds for the £375,000 raise:

Personnel: 27%

Software development: 45%

Business Development & Marketing: 16%

Professional Fees: 12%

How does it work?

The downloadable Klymat app lets employees choose their options within an organisation’s travel policy. The advanced software is user-friendly and intuitive, requiring no training. No additional hardware is needed beyond an organisation’s existing computers and smartphones.

Employees download the app, log in and book their travel/mobility options, which the platform records in real-time, making payment easy through a single monthly invoice. Klymat’s sophisticated approach allows employees to concentrate on their core activities by reliably and easily facilitating their entire transportation needs.

The networked system comprises a Corporate Portal, User Application and a Klymat Admin Portal all of which are hosted on AWS, supported by several databases, which facilitate anticipated requirement to scale delivery.

The Klymat Application can be used by IOS and Android devices and the software has been tested during construction and demonstrated to clients in the prototype version.

Market Opportunity

British Vehicle Rental & Leasing Association (BVRLA) and European Leasing Association (ELA) data indicate that the combined employee travel and vehicle fleet management markets are worth an estimated £1.3 billion in the UK alone.

Up to 1.8m users either utilise fleet services and/or participate in business travel through salary sacrifice or expenses claim procedures.

According to the Society of Motor Manufacturers & Traders (SMMT), company cars benefit 890,000 employees. There are also four million light commercial vehicles (vans) on the road that many large organisations operate.

Klymat operates in this B2B sector, targeting companies and public-sector organisations running fleets upwards of 100 vehicles on a replacement cycle of 48 months. Changing 25 cars and vans per annum provides the opportunity to demonstrate the power of an on-demand vehicle provision.

Corporate Structure

Tony Donnelly - Founder & CEO

• He gained experience in the rental and leasing sector as founder and chief executive of Goodwood Corporate Mobility, set up more than 25 years ago in 1995.
• Previously, Tony was a senior aircraftsman for ten years with the Royal Air Force (1965 –1975) based in the UK, Germany, and Canada.
• Responsible for Marketing, Sales, Collaborations and International reach

Dave Wallis - Co-Founder & Chairman

• An experienced non-executive director whose portfolio includes:
  • Corporate training,
  • Management consultancy,
  • Banking consultancy,
  • Performance coach and
  • Subject matter expertise - providing services to corporate, institutional, commercial and individual clients.
• Responsible for financial control governance and business performance

Stuart Donnelly - Director of Market Development

• An experienced fleet and business mobility professional with 20 years of relevant industry experience building, managing and creating profitable outcomes in this business-critical sector
• Responsible for major client acquisition, market development and partnership arrangements

CTO

• Currently employed by a leading payments organisation and has built the Klymat App prototype as well as foundation for software platform

FD

• Candidate identified

Exit Strategy

Klymat has been valued pre-money at £6.9m making it attractive to investors by comparison with other launches in the sector.

It is the opinion of the directors that an exit strategy is likely to be a trade sale potentially within 3 – 5 years with multiples in the evolving market place currently attracting above 5-10x multiples.