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Third Eye January 2018
Private and Confidential 2
Introduction
“Third Eye” is a company based in western India, and a pioneer in the telematics and fleet management systems (FMS) industry.
With 12,000 units sold till date, across blue chip and MNC customers, Third Eye has tremendous domain expertise and experience in:• Capturing a variety of data of the vehicle and driver• Overcoming the practical challenges in telematics• Analyzing the data and providing actionable business intelligence to the fleet owner• Developing an end-to-end fleet management system
While the vast majority of FMS providers really only address vehicle tracking and route planning, Third Eye is one of the very few players that provide a truly comprehensive state-of-the-art FMS.
Third Eye is looking to raise equity funds to:• Quickly scale up and become the dominant FMS provider in India. The company has large latent demand
that requires financing to convert into sales• Use its large installed base to develop a B2B marketplace for a variety of automotive-related products and
services across the value chain• Leverage its immense experience in fleet-related data centers and analytics to become a player in the
smart vehicle / autonomous vehicle industry
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What is Third Eye?
FEATURES
• Total visibility – Third Eye is the SAP of fleet management and telematics
• Addresses Health, Safety, Security, and Environment requirements of customers
• Remote wireless data acquisition
• Analytics – behavior and movement
• Online portal for real-time information
• Predictive and exception-based actionable BI
• Can be integrated with the customer’s ERP
• Minimal customer investment in capex and IT infrastructure
• Turnkey OPEX model with little risk to the customer
• Nationwide service locations - minimum TAT
Third Eye has partnered with TransWorld Technologies Ltd. for exclusive use of licence and technology, in perpetuity.
The next generation of smart fleet management. It is an enterprise technology solution for real-time telematics and analytics
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Basic
Intermediate
Advanced
MAJORITY OF FMS SOLUTIONS IN THE MARKET Vehicle tracking, GPS and navigation, Vehicle theft tracking
SELECT FEW COMPETITORS Accident recording and notification, Vehicle log book, Vehicle utilization, idle time and mileage optimization, Mileage report, Maintenance alerts and fuel management
THIRD EYE Vehicle diagnostics, Driver behaviour, Journey planning and analysis, Intra-fleet benchmarks and comparison
Evolution of Telematics & FMS
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Market in India
Drivers of Growth
• Increased focus on fuel consumption, on-time delivery and on-road safety
• Lower priced systems due to advances in technology
• Growing interest from CV OEMs for in-built telematics
• Increased adoption of telematics by cold chain and pharma logistics providers
• Government regulations mandating use of GPS-based tracking
Initial Addressable
Market$80 Mn
Projected growth rate up to 2021 – 29% YoY
Fleet-related Market
$400 Mn
Total Market$703 Mn
Source: Frost & Sullivan: Indian Commercial Vehicles Telematics Market, 31.08.2016
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Third Eye’s Blue Chip and MNC Customers
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SMARTMATICS is Next-Gen telematics – provides a wide variety of data on the vehicle and the driver that supports Health, Safety, Security and Environment, and helps generate actionable Business Intelligence.
VALUE CHAIN APPLICATIONS
SMART / AUTONOMOUS VEHICLE APPLICATIONS
InsuranceFreight, Cash & FuelManagement
Ratings
Extracting Value from Smartmatics
Etc.
Third Eye will leverage its large installed base and experience in Big Data and analytics to monetize opportunities in value chain applications and smart/autonomous vehicle applications
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Value Proposition to the Investor
This is an opportunity to monetize Big Data and analytics in the global vehicle-based transportation industry
The fleet management system business model is self-sustaining and profitable on a stand-alone basis.
The larger opportunity is in data aggregation and analytics across customers and installed base, monetizing multiple revenue streams in 2 broad areas:
• e-Marketplace: create a B2B platform for aggregating demand and supply for goods and services across the automotive value chain
• Smart and autonomous vehicles: be the provider of Big Data and analytics
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EARLY MOVERADVANTAGE
COMPREHENSIVE SOLUTION
ROBUST & GROWING MARKET
CUTTING EDGETECHNOLOGY
MULTIPLEREVENUE STREAMS
• Pioneer in telematics• Proven record of delivering value to blue chip clients• Deep understanding and experience in the domain
• Key differentiator: Third Eye has comprehensive capabilities that no other competitor offers – in India or globally
• Consolidation and aggregation in trucking and taxi services means higher proportion of large fleets
• IoT solution, leveraging the power of the Net
• Proprietary map server – not dependent on Google
• Competition is forcing fleet owners to maximize efficiency through use of intelligent telematics
• Robust, proven and patented technology
• Low cost, quickly deployable and scalable
• Service revenues• Revenues from Big Data and analytics → multiple revenue opportunities
Investment Highlights
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Transaction Summary
Company Third Eye
Business Telematics and Fleet Management System (FMS)
Financial Projections
(only for FMS)
All figures in INR Cr
Transaction Equity investment of INR 22 Cr to fund Working Capital and OPEX
Particulars FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23
Revenues14.14 30.02 54.91 97.50 156.14
EBITDA 4.47 14.48 30.96 61.01 100.94
PBT2.04 11.01 24.50 50.06 82.99
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Third Eye - Technology Advantage
IoTEdge
• Smart, compact and network independent data acquisition platform
• Data warehouse solution for multiple stakeholders
• API and database structure allows integration with 3rd party systems
Big Data
CloudPROPRIETARY MAPPING SOFTWAREIn-house Map Server
GIS layer
▪IoT technology developed over 15 years
▪Provides predictive and actionable BI
▪Edge computing model:
• Smart device - distributed computing
• Narrow bandwidth transmission. Devices capable of working on 2G network.
• Over the air updates and upgrades; remote access and maintenance
▪Open-source cloud based network
▪Fast deployment, scalable, and replicable
▪Cloud/Mobile/Enterprise accessible customer portal
Patent protected wireless hardware and software, IPR protected ERP and Portal (embedded with GIS)
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Monetizing Big Data across the Value Chain
e-Marketplace: exclusive B2B marketplace
• Leverage Big Data and analytics to create revenue streams in:• Insurance• Freight management • Warehousing• AMC and on-road assistance• Cash management• Fuel management• Leasing and finance• Tires, lube oil and other consumables• Market vehicles management• Driver and fleet company ratings• Emergency medical services
• Strategically align with start-up aggregators in other verticals (taxis, buses, etc.)
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THIRD EYE PLAY
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The Smart / Autonomous Vehicle Ecosystem
Big Data and Analytics:
• Third Eye has domain knowledge and expertise in collection of real-time data from vehicles, management of that data, and of designing and executing data analytics that result in actionable BI.
SaaS:
• Very few players in the connected car market have the back-office capabilities to monetize services, share revenue with partners, or provide any sort of effective data-based customer service. All participants will need the ability to dynamically track and charge for services on a consumption basis, including vehicle usage, data consumption, and application access.
CameraSensorsDisplays
Alarms
HARDWARE
Navigation / MappingEdge computing
Collision detectionSensor interface
TelecomService provider
interfaceMobile apps
SOFTWARE
Data trafficData securityBig Data
DATA CENTRE
Cross-deviceCustomer 3600 mgmt.Predictive
ANALYTICS
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International Players & Recent Transactions
Lytx• Formerly DriveCam, Inc., Lytx is a global driver risk management company located in San Diego, California. It specializes in designing, manufacturing and selling
video driver safety programs used by commercial fleets. Lytx provides solutions in Driver Safety & Risk Management, Fuel Management, and Fleet Tracking • In 2016, Lytx was acquired by GTCR, a Chicago-based PE firm, for US$ 500 million. By 2015, Lytx had a subscriber base of over 300,000.
Mobileye • An Israeli company. Mobileye has developed a range of software products that is deployed on a proprietary family of computer chips named EyeQ ®. Leading
supplier of software that enables Advanced Driver Assist Systems (ADAS), with more than 25 automaker partners. Intel acquired Mobileye in August 2017 for US$ 15.3 billion (42 times sales of $358 million). Intel CEO Brian Krzanich said that autonomous vehicles will represent a potential $70 billion addressable market by the year 2030. Beyond that, Intel believes that supporting self-driving cars will require a large amount of additional data center, network security, and cloud computing hardware.
Zendrive• A startup that uses smartphone sensors to measure drivers’ behavior. In 2016, raised $13.5 million in Series A funding led by Sherpa Capital, with participation
from Nyca Partners, Thomvest Ventures, and earlier backers First Round Capital, BMW i-Ventures, and Fontinalis Partners. • Since Zendrive measures data on mobile devices versus the vehicle itself, it will become increasingly relevant to on-demand services, where there may be more
than one driver per vehicle. The technology also detects collisions in real time, allowing any car containing a smartphone to notify a call center or emergency contact, thereby reducing the time required to deliver a first response.
Contact us
Yen Capital Advisors Pvt. Ltd.
Rajeev Bhide Executive Director Cell: +91 9370133000
Ravi Kapoor Executive Director Cell: +91 9881400201
Regd. office: 1205/3/1, Indra Bhavan, J.M.Road, Pune 411 001Corp. office: G-2, Advent, Gen. J. Bhosale Marg, Nariman Point, Mumbai 400 021Pune office: 102, Sai Leela Apts, Ekdant Vihar Lane, DP Road, Aundh, Pune 411 007
