In the forum review vol.1, we covered the whole picture of the forum and Opening Remarks by Brazil Venture Capital. From vol.2 onwards, we will deliver a series of 18 sessions. This time is “Brazil’s Agtech Startup Introduction” by Lucas Bastos, COO of Horus!
「Brazil’s Agtech Startup Introduction」by Lucas Bastos, COO of Horus
Company Profile | Agritech company from Brazil using drone and information technology
Horus Aeronaves (Horus) manufactures drones that focus on aerial mapping and develops online image processing platforms to provide agricultural solutions using drones. “DaaS” (Drone as a Service) is a feature of the business model.
Three of the company’s Founders, Hertz, Mondadori, and Bastos, participated in a drone and aero design research project in 2010 in the Department of Mechanical Engineering at the Federal University of Santa Catarina, Brazil. Horus was founded in 2014 based on their domestic and international awards and market growth prospects.
Currently, it has 32 employees, sales between 2015 and 2018 reached +380% growth, and the total funding is about US$2.1M. The advisory board also include Jardim from SP Ventures, who will be introduced later in the series of forum review.
Raising the problem | Loss to agriculture due to lack of information technology
Due to the lack of information necessary for crop management, farmers mainly lose at the following rates.
31% increase in management costs
26% pest control
24% weeds control
19% drop in productivity
Solutions provided by Horus | “DaaS” (Drone as a Service)
Apply artificial intelligence to images collected by drones and satellites to provide agricultural information on mappa, a dedicated platform. The usage amount is US$130 ~ per month for mappa and US$1.3K ~ for drone. It can be customized to meet customer requirements.
Image of DaaS
mappa | Agricultural information platform with +40 algorithms
The mappa is a platform that manages image information from drones and satellites. Enables location verification of drones and satellites, integration with customer data systems, multiple user access, integration with agricultural machinery, etc.
In addition, mappa has more than 40 algorithms built in, with main functions like “Drone Application Map, Line Analysis, Fault and Individual Counting, Soil Sampling Optimization, Pest and Weed Warning, Nutrition Fault Map, Growth Monitoring and Safety Monitoring.”
Customer benefits | 50% cost reduction and 20% productivity improvement
With these integrated solutions, customers are expected to save 50% in costs and increase productivity by 20%. At present, in addition to Brazil, we have partnered with more than 200 distributors in South American countries such as Argentina and Peru, covering a wide range of farmers and seeing the potential of DaaS diffusion.
Market Overview | Rapidly growing drone market and vast agricultural land area in Brazil
Brazil has approximately 300 million hectares of farmland (approximately 70 times the farmland area of Japan!), 300,000 agricultural engineers and 150,000 drones. The drone market is expected to double from US $ 0.5B to US $ 1.0B in South America for 2018-2024 and reach US $ 43.1B with CAGR of 20.5% globally.
Differentiate from competitors | Build competitive advantage with low cost, customization and satellite capabilities
A comparison of major competitors in Europe, America and Brazil such as Drone Deploy, Humming Bird, and Sensix was also introduced. Horus seems to have a competitive advantage in areas such as cost per hectare, customization, and satellite capabilities.
Momentum in 2019 | 20% increase in paid members per month
This year, out of about 3,200 free trials, about 5% are paid members, and the number is increasing by 20% every month. In the latest Q3 financial results, sales recorded a 70% increase over the plan, and the business performance looks good.
Growth target for the next 4 years | 20K paid members, annual recurring revenue of US$24M
By 2023, the number of recurring members is 20,000, and annual recurring revenue (ARR) seems to target US$24M.
New funding plan | US$2.4M to achieve the growth target
In order to achieve the above goals, Horus plans to raise US $ 2.4M. Funds will be distributed mainly in the three areas of technology, marketing and human resources. “We expect investors to provide support in terms of management strategy and market access in addition to funding,” Bastos said.
Funding history since establishment in 2014
Muito Obrigado Lucas! Thank you for joining us!