Photo - Kaldi AI is the next quality assurance for soft commodities
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Kaldi AI is the next quality assurance for soft commodities

Sweden
Market: Food industry, Services, Artificial Intelligence
Stage of the project: Prototype or product is ready

Date of last change: 22.05.2020
Min investment
$  100.000
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Total required
$ 1.000.000
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Idea

The coffee value chain lack of early data quality reports. The coffee quality data becomes available late in the chain.
Our business plan is to generate data quality from buying stations and co-operatives and sell the data to rest of stakeholders (importers, traders, roasters) in the coffee value chain.
The coffee industry lacks of an objective and formal coffee quality standard. Only the Specialty Coffee Association has coffee beans defect guide. The defect guide is quite loose and imprecise. We plan to create the first technical and global defect coffee standard based on images.

Current Status

We're developing our hardware prototype and we're in talks with coffee companies like Löfberg to try to make a partnership o join venture.
Löfbergs was founded in 1906 and is now one of the biggest coffee roasters in the Nordic region.
Kaldi and Löfberg met during the Antler program in Stockholm that started in January 2020.
Together with them, we're adapting our prototype to produce an MVP. The MVP will be deploy in producing countries to start taking coffee samples.
Also at the moment we're looking for partnerships with coffee buying stations and co-operatives in key countries like Brazil, Colombia and Honduras.

We have a few LOI from roasters and we're trying to get some from coffee traders and importers.

We're seeking seed investment.

Market

Customer segments:
In the first phase: Coffee importers and traders
Second phase: Roasters and retail (Coffee shops, Stores)

Coffee importers collect coffee quality mostly by manual processes like phone calls, emails and messages. They dedicate also numerous resources to test the physical coffee samples sent around the world.

Coffee traders in some cases perform the same tasks in quality assurance but they tend to buy coffee based on the market value and the volumes.

Market size:
Importers and coffee traders 3 000
Roasters 30 000
Retail (Coffee shops, stores, supermarkets) over one million

Problem or Opportunity

The commodity value chain is full of opportunities for modern companies that can apply the latest innovations within AI and Cloud computing to provide more business value to all stakeholders in the supply chain, in the example of coffee the value chain consists of farmer, buying station or/and cooperatives, Dry mills, local exporters, global exporters, global importers, local importers, roasters and specialty coffee producers.

Today information is made available to a digital market when the coffee has reached the exporters, up to three months after the harvest. By providing information on an earlier stage in the supply chain it would be possible to develop the ever growing industry and further and ensure that the right quantity and quality is made available at the roasters and importers which in turn could enable better planning increased efficiency and effectiveness throughout the chain.

Solution (product or service)

Kaldi AI has developed a process that objectively can determine the coffee quality of samples already at the first instance in the commodity supply chain. Through Information gathered from the farmer, analysis through hardware AI and software connected to AI Kaldi upload the information to the cloud and provide the information throughout the supply chain network via a SaaS within seconds, enabling world wide players to order batch or type coffee well in advance of receiving the supply.

Competitors

To our knowledge there is no competitor at this early stage in the coffee value chain.

Advantages or differentiators

Kaldi builds on a proprietary data set and IA. The majority of the products are based on computer vision which can not detect as many defects as Kaldi does.
We provide also the information digitally in seconds after the sample has been processed at the origin. The data is available globally to all our subscribers as well as the unique insights.

Kaldi can learn faster than the other competitors as it has built in AI. If new types of defects occurs, Kaldi will be able to remove them while the competitors won't.

Finance

We plan to collect data from the coffee producers (buying stations and co-operatives) and sell it to coffee importers and traders. Our customers can subscribe to our coffee quality data

One buying station 10 €
Ten buying stations 20 €
Buying station region 100 €
Buying station country 1 000 €
Buying station continent 10 000 €
Global buying station 20 000 €

We also plan to sell up-sells, the coffee beans market is composed by many factors. In the up-sells the customer can pay for additional insights on the coffee quality data from coffee experts.

Our next five years sales:
2020 10 000€
2021 200 000€
2022 5 000 000€
2023 16 000 000€
2024 58 000 000€

Business model

Our business model is subscription based with upsells.
We also sell API integration with existing ERP systems like SAP, Oracle, etc.
Integration with marketplaces were coffee is traded.

Channels:
We plan to sell through coffee organizations like ICO.org in Europe.

Metrics:
Number of buying stations and co-operatives that produce data
Number of subscriptions sold to coffee importers and traders
Number of API integrations in the coffee value chain
Number of marketplace integrations in the coffee value chain
Number of samples taken per harvest

Money will be spent on

We will spend the money on growth. We will hire a sales team with contacts within the coffee industry.
Also the seed funding will be used for international expansion, to sell data globally beyon Europe to USA, Asia, etc.
We don't have exact numbers at the moment, it depends on the terms and conditions with Löfberg.

Offer for investor

We're looking for seed funding.
We are willing to share 10% up to 30% of the company in exchange for $1 500 000 or $2 000 000.
We are looking for smart money, someone with connections in coffee chains, coffee distribution or manufacturing in China in first hand. Other countries like Japan and USA are also interesting.

Team or Management

Risks

We could fail to deploy the hardware in certain countries due the current Corona pandemic. In the long run we're confident that we can deploy at least 1 000 devices around the world.


Incubation/Acceleration programs accomplishment

Antler Stockholm 2020

Won the competition and other awards

We haven't submit our idea to any competition yet.

Invention/Patent

We plan to patent the algorithms, data sets, hardware.
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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
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