APDZ Educação e Tecnologia

APDZ is an Edtech that offers its service to schools (K-12 sts) in the whole Brazilian country, and has started conversations with Portugal and Mexico. Our expertise is the creation of Tech Content, focusing on the Maker Movement, STEAM approach, aligned with different national regulatory system of curricula, in the Brazilian market, the BNCC. In Mexico, for example, the Nuevo Modelo Didático. Our solutions are blended or 100% online, aiming at the private and public sectors, with great potential of being replicated, at a very low cost.

APDZ has clients throughout the Brazilian territory. Our solutions have served 104K students (unique users) in the last years, 98 private schools.We currently have 4 working products. We offer 100% online or blended learning projects. In 2020, we had 12K students. Due to the pandemic, we had some schools not renewing the contract or canceling it. We have so far around 50% of the sts we had. We have some new clients being introduced to our 100% online project, which was launched in 2020 due to the pandemic, and served all our schools.

APDZ offers its core products to K-12 students, throughout the whole Brazilian country. Due to the pandemic, we were forced to go 100% online, which created a new niche for us, and a great opportunity to rollout our products.
In Brazil, we are talking about a 54-million addressable market, but we have started talking to people outside Brazil because of this new online platform. Before the pandemic, we had to limit ourselves to some states in Brazil, and needed a good amount of CAPEX to grow. This does not happen now mainly with our online products.
Our goal in getting funds is to accelerate growth, implementing a strong sales team and effective marketing strategies.
One insteresting point to be highlighted about our business model is that the payback for new clients occurs in 7-8 months, and they minimally stay 36 months with us. This is another insteresting point to be mentioned: the recurrent income we have.
We currently work with B2B and B2B2C models. In a near future, the B2C model might be something to be looked at.

Problem:

Recent studies prepared by MEC (Brazilian Ministry of Education) demonstrate basic school students feel demotivated to attend regular classes.
 
New techniques require a different learning strategy, focused on interaction and critical thinking.
 
Schools are in search of more modern solutions to address this necessity coming from students. Despite this need, there is still little offer in the market.

APDZ offers different products focusing on the modern
MAKER-STEAM approach, being flexible in its delivery:
blended or 100% online.
 
Another point to highlight is that the main expertise of APDZ is to produce content. Thus, customizing material to GO GLOBAL should be considered an easy task.

Among our competitors, we could consider the foregoing as our main competitors.

- Nave à Vela
- Viamaker
- Zoom Education
- Mundo Maker

There are certain things that differentiate us from competition:

One that has always been our concern: accompanying schools during the whole time they stay us, creating this bond with all stakeholders,which, in our opinion, is vital for the success of the project. Competitors don't usually put their efforts in this, and thus, have high chances of losing clients. Our churn before the pandemic was of maximum 5%. Clients have always been loyal to APDZ.

Another point to highlight is that the main executives at APDZ have more than 20 years in the field of Education, which grants them good knowledge of the topic.

And definetly, one big differentiator is that NO OTHER competitor has such a platform as the one offered by APDZ for blended or online learning. Competitors during pandemic, opted to offer live classes using a meeting piece of software or used Youtube to stream a class. No competitor created a full, hollistic program, such as the one APDZ did, and now included in its portfolio.

The average tkt for our products is of US$60/st/year.
As previously mentioned, payback occurs around the 7th or 8th month of contracts of 36 months.
According to our business plan, in Year 5, we should have around US$4MM of sales, with an EBITDA of 60%. In 2020, we sold around US$700K, with an EBITDA of 49%.
Margins are very attractive and we have the chance to make them even higher now that we introduced the Online products.

During these years, we have had:
- B2B and B2B2C sales
- the B2C market is an issue being addressed during Board Meetings for future action due to its peculiar approach to sales.

- In 2020, 90% of our income was through the B2B model. However, due to the pandemic, and believing schools won't want to take responsibility for the payment at this critical moment, a lot of emphasis will be given to the B2B2C model. This way, the responsibility of paying APDZ is directly with parents/relatives, and in our plan we are planning on offereing the school a rebate for the sales. This way, we can get them engaged in the process.

Money will basically be used in the sales force and in marketing strategies, so as to guarantee we can accelerate our sales, reaching gross reveunue of approx. R$20MM in 2025.

There are multiple ways to see company's valuation. The discounted cashflow methodology is one of them. Nonetheless, in order to make it simpler and more practical we got the average of revenue in 2020/2021 and used a multiple to come to company value.

Based on that, a percentage of around 20% for the USS1MM does make sense to us.

I would say we could face two risks: one related to any major economic crisis, which could affect people's montlhly income. Another risk we face is the fact that our current material is based on a regulatory basis called BNCC, which might change (scarce possibilities for the next 10 years) and cause our product to be outdated, which would make us invest in the development of a new project.

We haven't had any incubation or acceleration program.

We haven't taken part in any competition yet. This is our first one.

Using INPI (Institute for Intellectual Property) we have been granted the right to sell TeamLab and WeLab), we we are now working on registering the new product OnlineLab at INPI as well. Process is on its way to be regulated.

We have also been granted the IP from Biblioteca Nacional, which guarantees all the material has been produced by APDZ.