Klymat, a travel and transportation technology startup, is seeking seed-stage investors for its Mobility-as-aService (MaaS) digital platform. The company’s first round of private equity fundraising will accelerate the development of its intelligent mobility service, offering private and public organisations a previously unavailable employee travel solution.
Klymat delivers its unified service through a centrally hosted online system licensed to clients as a monthly subscription, providing annual recurring revenue (ARR). The company is seeking £1 million initially to launch its transformative mobility service at a pre-money valuation of £7 million. Most of the investment will cover software development and recruitment of key personnel.
Its goal is to achieve breakeven within three years and seek patient venture capital from angel investors and fund managers seeking a return on investment within five years. The company’s founder, highly experienced in vehicle fleet management, envisages a trade sale exit.
“Mobility is defined as the ability to move freely and easily, but in practice, organisations are hard-pressed to manage their employees’ constant toing and froing as they go about their business,” says chief executive and company founder Tony Donnelly. “Klymat’s all-encompassing solution radically changes the way organisations manage their employee travel arrangements and so-called company cars. Traditionally vehicle fleets have been expensive, long-term, inflexible, and hard to manage. Organisations also spend a lot of money on travel arrangements for employees and have lacked the tools to integrate these separated overheads effectively. By linking these two outgoings our digital solution becomes a high-added-value proposition.”
Prospective clients already expressing an interest, including major corporations and large companies alongside public sector organisations, will use Klymat’s software to calculate the entire cost of every employee’s journey, whatever the mode of transport. Its dashboard provides crucial management information on existing fleets and staff journeys – whether by car, van, plane, boat, or train. And the downloadable app lets staff choose their travel options within organisational policies.
Klymat’s platform allows personnel to concentrate on their core activities by facilitating their entire travel and transportation needs. 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. The app prompts employees to consider their environmental impact when travelling, helping them take responsibility for their choice of vehicles and other modes of transportation.
“Employee travel arrangements just got simpler, more visible, more flexible, and more cost-efficient,” says Donnelly. “Our digital platform keeps track of the cost of two significant overheads, measuring and protecting an organisation’s environmental credentials.”
Klymat and MasterCard, meanwhile, are working to build a unique payment plan that will revolutionise the way businesses use and pay for their fleet and mobility usage. Klymat has joined the Priceless Planet Consortium, a MasterCard initiative to replant 100 million trees by 2025 to repair the harm caused by senseless deforestation in many parts of the world.
Donnelly is supported by chairman David Wallis, an experienced non-executive director whose portfolio includes corporate training and banking consultancy. Klymat is advised by advanced automotive technology fundraising specialists, Prospedia Capital, and MPA Group (a subsidiary of Michael Price Associates Ltd), a full service agency providing accountancy, tax, and legal advice.
About Prospedia Capital
Prospedia Capital is the world’s first private equity seed-funding initiative focused on connecting startups developing advanced automotive technology, intelligent mobility and future transport solutions with angel investors, VC fund managers, family offices and automotive industry experts.
With the support of Beauhurst, Prospedia has studied the investment flowing into early and growth-stage companies serving the UK’s automotive industry. Their joint report published 1 Sept 2020 identified upwards of £1 billion of private equity investment needed to ensure the sector chieves its full potential.
Prospedia is part of Envestors’ Envestry network, a member of the Society of Motor Manufacturers and Traders (SMMT) and the UK Business Angels Association (UKBAA). Envestors is authorised and regulated by the Financial Conduct Authority.
Pictured: Tony Donnelly, founder, and CEO, Klymat Limited
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