How solving an obscure problem helped AssetOwl land 7-Eleven
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AssetOwl makes software to manage something you’ve probably never thought about, but come across every day — merchandise promotions.
When you pick up a chocolate bar or pack of chips on a display near the counter, it only requires a moment’s thought for your waistline.
But for some poor manager at head office, it’s a serious — and seriously big — job to make sure the campaign is executed properly.
“It’s quite an inefficient process,” AssetOwl (ASX:AO1) boss Giuseppe Di Franco told Stockhead.
“You have all these people visiting the stores, disturbing trade. You’ve got all these reps running around all the time checking boxes.”
When Mr Di Franco, a technologist, met Tim Brady, who had spent more than a decade working with retailers, they established AssetOwl. The company was formed in 2014 and listed on the ASX in January after a $6 million reverse takeover of Regal Resources.
Last month AssetOwl announced its first major customer, and it was a big one — 7-Eleven.
“It’s quite exciting for us to be working with 7-Eleven because it really validates our technology being used with a national retailer with high merchandise standards,” Mr Di Franco said.
AssetOwl can also let businesses create virtual representations of their stores showing layout and activity.
“It’s about blending the retailer’s CAD [computer-aided design] floor plans and images, as well as other data like sales and foot traffic to let retailers make decisions quickly,” Mr Di Franco said.
As well as talking to retailers, the company is running a trial with a state government agency to see how the software performs in asset management.
“Retail really is our focus, but it’s about seeing if there are other verticals we can go into without having to put any more development into the product,” Mr Di Franco said.
“We’re really confident that i can be applied to other markets and it won’t force the company to invest any more more in development.”
In the quarter to June, AssetOwl spent $1.4 million, leaving $1.7 million in cash. It expects to spent $700,000 in the current quarter and has no immediate plans to raise capital.
The company’s shares were 20c at the close of market on Thursday.