The only technology startup appearing in Shark Tank Vietnam season 5 episode 7 is Phan Thanh Huy Cuong – Founder and CEO of Dai Viet IoT Technology Joint Stock Company. He came to call for an investment of 2 billion for 10% of the company’s shares.
Dai Viet IoT Technology Joint Stock Company is a startup specializing in providing IoT (Internet of Things) solutions, operating monitoring software for industrial equipment.
This solution helps factories and contractors to control electricity, water, energy, CO2, wastewater treatment stations, clean water as well as the cooling system of the central building. All that needs to be done through a smartphone.
According to Huy Cuong, in 2019-2020, his company has helped contractors and water plants to treat saline water in the Mekong Delta. This includes monitoring and operating all equipment to treat saltwater into fresh water and increase water quality.
Currently, Huy Cuong’s startup has customers in countries such as the US, Saudi Arabia, Indonesia, and Myanmar to experience using the software. In addition, the company also develops some hardware to be able to quickly connect to systems such as water meters, water quality control.
Huy Cuong shared that his team started researching and developing solutions in 2018, stemming from difficulties in operation and digitization costs. In 2020, he started the company. At that time, the startup mainly focused on registering software copyrights and intellectual property.
According to the founder, Dai Viet’s products are researched and developed at the High-Tech Incubator under the Department of Science and Technology of Ho Chi Minh City and just started to develop business in March.
With the sharing of the startup, Shark Hung considers this to be a good product, but the success depends much on the professional capacity of the team.
In the face of questions about the total cost of setting up the system from hardware devices, sensors to programming settings, application uploads, and operational efficiency. Huy Cuong said that all water plants and treatment stations have control cabinets, sensors, and network nodes. This startup will make the connection of the hardware infrastructure and put it on the server. That will help optimize maintenance, production as well as set KPIs in the fastest way.
According to Huy Cuong’s share, a gateway hardware kit (protocol converter) is currently being developed by his company for 3-3.5 million VND. Each of these devices will manage about 100 water stations. The entire water plant will need an investment of 40-60 million dong.
Currently, the startup has a customer file of about 30 contractors and 200 users in use, with areas such as water treatment, wastewater, clean water, refrigeration systems, water systems …
Regarding the financial picture, from 2018 to now, the startup has invested more than 3.5 billion VND. The revenue target in 2022 is 10 billion, with a profit of 30-35%.
Commenting on this startup, Shark Binh (Nguyen Hoa Binh – President of Nexttech Group) said that this business model should seek capital through loan tools rather than equity investment tools.
“Calling capital by common shares for businesses with high growth potential and plans to be able to multiply 5, 10 times the scale of their output and services in a short time”, explained Shark Binh and make the decision not to invest in Startup.
Agreeing with Shark Binh, Shark Phu (Nguyen Xuan Phu – Chairman of Sunhouse Group) said that Dai Viet’s ioT model does not need too much money but is mainly based on capacity and sales ability. Therefore, he decided not to invest in the product.
With Shark Hung (Nguyen Thanh Hung), he assessed this as a startup with a relatively small market. This is not a mass product that everyone can use. For the above reasons, despite impressing both “sharks” and viewers, it is quite sad that Dai Viet IoT later did not receive any investment from the sharks.