Ofisim plans to raise $ 5 million next year, welcomes advisory approaches, CEO says
Ofisim.com, a Turkey-based business applications provider and marketplace, is planning to raise 5 million dollars in a Series B Round in the next 18 months to boost global sales and marketing efforts, CEO Serdar Turan said. The startup is holding talks with British advisors but would welcome approaches from financial advisors worldwide, he told Dunya Executive.
The Platform as a Service (PaaS) company is currently in efforts to raise 1 million dollars for a 5 to 10 percent stake in the company in 2017. The pre-investment valuation in this round is about $ 10 million, Turan said.
It is seeking strategic or financial investors with smart money that could also help its global expansion plan, Turan said. The proceedings in both rounds will be used for global marketing and sales efforts, as well as expansion in the United States. It is also in touch with investors in Britain but the talks are in early stages, he added.
Established in December 2015 by Turan and private individual investor Arslan Dogan, the company expects to post $ 250,000 revenue in 2017 and has a monthly burn rate of $ 30,000, which it plans to double after the Series B Round. The founders invested $ 500,000 in the startup, Turan said adding that it expects breakeven in mid 2018.
Ofisim.com is a provider of customer relationship management CRM solutions to small and medium sized enterprises and re- cently established a new marketplace for its partners where they can market their apps for SME’s and enterprises, he said.
Its core product PrimeApps allows enterprises in all sizes to create cloud-based CRM, enterprise resource planning (ERP) or human resources (HR) applications without writing codes, Turan said. Besides CRM services, it aims to provide ERP services and help digital transformation of enterprises, he added.
Its main products are a project management app, call center CRM app, event and activity management app, quote and order management app and SPICE based quality management app.
The startup has been providing services to 1,000 users from 70 accounts. It has 12 employ- ees and two offices in technoparks in Istanbul and Ankara. Its main competitors are Force.com (a Salesforce subsidiary) and the U.S. based Appian and Mendix, as well as Microsoft and Google that recently invested in the business.
According to Gartner, majority of enterprise IT spending will be toward custom-fit application development projects to manage business information– which is a $ 393 billion market, according to Gartner’s Forecast Analysis: IT Spending, Worldwide, 4Q16 Update report. Ongoing spending to support digitalization initiatives in areas such as CRM is expected to grow at 14.9 percent compound annual growth rate (CAGR) – which is the fastest growing segment in global IT spen ding, the same report said.