Catalyzing successful US market entry as a leading AI-based document processing platform
Company
Applica.ai
PE/VC investor
Cogito Capital Partners
Investment period
2019-2022
10
MOIC
170
revenues growth
YoYH1 2022
Applica is a world-leading provider of an AI-based platform that processes unstructured data and extracts information from business documents. Their "intelligent document processing" platform is used by large enterprise clients in Europe and the US, primarily in banking, insurance, and healthcare. It automates key business processes involving unstructured and semi-structured documents using sophisticated Deep Learning and Natural Language Processing methods, and proprietary technology to comprehend information regardless of document format, content or language. Cogito Capital Partners led the Series-A investment round in 2019, along with Barclays as a syndicate investor, and made a follow-on investment in 2021. In Q3 2021, Applica was acquired by Snowflake (NYSE: SNOW), a global leader in cloud computing and data analytics services. Applica's AI document processing solution will be integrated into Snowflake's data cloud platform, serving over 6,000 global clients. Cogito Fund I achieved an impressive 10.0x MoIC and 148% IRR return on investment in less than 3 years, marking the first successful exit from Cogito Fund I.
Main objectives of funding
Growth capital for execution of the Company’s global expansion strategy
Support in the US market entry and business development (building strategic partnerships in the enterprise sector; hiring US sales team, etc.)
Capital for further development of the intelligent document processing platform and co-financing of R&D projects
Building the Company’s capacity to raise next funding rounds
What changed in the company after PE/VC investment
Applica.ai entered the US market in 2021, securing their first customers. Their own sales team and strategic partnerships were instrumental in this accomplishment. Hiring top sales, marketing, and business development talent, along with strategic advisors, helped establish their US operations efficiently
Revenue grew more than 170% YoY in H1 2022
US patent was granted for Applica’s key technology
Applica’s platform consistently outperformed its peers in intelligent document processing accuracy and automated throughput, e.g. Microsoft, Tencent, Hitachi
Operational, financial management and reporting processes were established to create an effective governance structure.
Applica.ai developed a comprehensive go-to-market strategy encompassing partnerships, target segments, company and product positioning, and market messaging
Successful acquisition by Snowflake, a prominent global leader in cloud computing and data analytics services, was made possible through a professionally structured exit process.
