Photo - Magrotech
49629

Magrotech

online service-a decision support system for fertilizer use

Russia, Krasnodar region
Market: Internet and IT, Consulting, Farming
Stage of the project: Operating business

Date of last change: 05.10.2020
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Idea

Magrotech online service is a decision support system for fertilizer use. Its features allow to predict potential crop productivity, select expected productivity, compose a nutrition system for it, and calculate the economics. We make decisions taking into consideration historical and curent data of a specific field.

Current Status

We are an effective team of experts in agro-chemistry, agronomy, programming, and analysis. We are already working with large holding companies. We became residents of the SKOLKOVO Innovation Park in Moscow. Today we provide service for 5.000 hectares.
- more than 2500 test results
- Own scientific research & development
- A team of agricultural chemists
- Skolkovo participant
- provide services to the leading crop farmers

Market

There are 1,3 billion hectares of arable land in the world. 20% is large farms, our potential clients. Today, the average check for using farm management systems is $5 per hectare per year. We will be able to get 5% of this market by 2024. Target client - farm over 50 000 ha.

Problem or Opportunity

We know that in real life agronomists and farmers make a lot of decisions a week. 80% of the profit depends on these decisions. Making decisions takes a long time. The more decisions you make, the more mistakes you might make. Losses can be up to 20% of the farm profit.
Many difficult decisions:
What are the risks of NOT performing?
What security measures will work?
What fertilizers are needed?
What dosages are optimal?

Solution (product or service)

We have created a web service that helps you manage your main expenses. The Magrotech system manages operations, fertilizers, and chemicals on 14 major crops.
The system allows you to make a vast number of correct decisions.
We using synergy of data science technology and agrochemistry. This allows us to manage different resources: fertilizers, chemicals, and machinery.
More Analyses – More Profit
FARM YIELD 5-10% HIGHER
The increase in the average yield cultures 10-15%
Economy in chemistry 2-3%
Profit from cooperation up to $1000 / ha

Competitors

Two main competitors: Farmers Edge and Smart Fertilizer

Advantages or differentiators

Our main competitors offer only templates for storing or visualizing information. Their product fail to make complex solutions and recommendations. The implementation of farm management systems or ERP systems take many months, but the yield does not grow!
Our web-service calculate more data. Our company increases the crop production by 5 to 15% (percent) per hectare. We make an increase in productivity for grain, legumes and vegetables. Our clients can gain 100 to 1000 dollars of additional profit per hectare.

Finance

We plan revenue $150 000 in 2020. Every year the company revenue grows 3 times. Now we have a rate of gross profit of 35% . Without including reinvestments, we are already profitable. We expect to work on 50 million hectares in 2024, with revenue of $100 million. They are the markets of North and South America, Australia and Europe.
We are raising $ 1.2 million to enter the North American market. This will increase our revenue hundredfold and capitalization twentyfold. We expect the capitalization to grow from $5M to $100M in 3 years. Large chemical holdings are now showing interest in us.

Business model

We have the two business models. The first model is the service of agricultural accounting. We do this with our employees or partners. Second model is the subscription for access to the online service.

Money will be spent on

We are raising $1,2 million to enter the target markets. The money will be spent on the market penetration.

Offer for investor

Raising $1,2 million for 24%. ROI 20. Present value $5M. Future value $100M.

Team or Management

Incubation/Acceleration programs accomplishment

residents of the SKOLKOVO Innovation Park

Won the competition and other awards

The winners in grants competition of the FASIE (Foundetion for Assistance to Small Innovative Enterprises in Science and Technology)
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video