Software Packages / Services for the Education Sector

We are into software development of packages and services for the Education sector.

All solutions are Web based and hosted on servers leased by our company.
We already have 6 institutes / clients established and are looking to market the product further.

We require around $150,000 over a period of next 3 years in 3 phases to support development, marketing and implementation of the software / packages in various organizations all over India.

We have been into Software services for more than a decade now. We have successfully implemented projects in various sectors, namely Public Services, Engineering, Retail and Jewellery in the last 2 years since the inception of the company.

For the past 6 months, we are primarily focussing on packages and services for the Education Sector.
As Education in India is taking a big leap in terms of providing Education for all and quality education has become the responsibility of the School Management. With it the Software Products are been used at the basic support mechanism to generate MIS reporting for various improvement reasons.

We have developed 40% of the planned modules (Student information / Fee management / Enquiries and Admissions / Bus management / Financial Accounting and integration / Communication.

We have planned development of Inventory / Library / Grade Card / Hostel management / HR and Payroll.

Apart from the above, refinements in the product in terms on optimization and making it less prone to maintenance is our prime focus.

Currently we have 6 institutes accross Maharashtra, India, which have acquired our services for their operations, with almost 4000 students being managed.

We are seeking funds for development of additional modules and marketing / implementation of the product.

We have been meeting a lot of schools and we have seen positive responses from some meetings and some have proceeded to next level of meetings. The system being already live, we are focused to add more schools in our network.

We have a deficit of $1,50,000 for three Years starting April 2012 onwards and are looking for funding in 3 phases each amounting to $50,000

A> Web based solutions hosted on servers managed by our company
Maintenance cost is nearly 1/3 of that required for a client server application. Around 75% of the products in the market are client server applications. As per our meetings with various management people, the post implementation support is one of the biggest issues.
3 schools out of the six institutes that have opted for our services have switched from existing client server applications.
B> Low Capital Investments for Education Institutes
We are providing the software package for a nominal set up fee and providing our software on annual subscription basis revenue model. This keeps the entry cost for our clients low and we are benefitted by recurring subscription incomes.
C> Only one code is maintained for core modules and additional customizations for the schools / colleges is done separately as software services project which helps us keep the code maintenance cost very low.

We are expecting an average revenue of approx $1000 per institute per annum and target the following client base in the next 5 years:

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Year // No of Institutes // Expected Revenue
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FY 2013 : // 15 // $15,000
FY 2014 : // 50 // $50,000
FY 2015 : // 125 // $125000
FY 2016 : // 250 // $250000
FY 2017 : // 400 // $400000

Total cumulative expected revenue at the end of FY 2017 is $840,000

Below is the snapshot of expenses for the above mentioned period:

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Year // Projected Expenses
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FY 2013 : // $65000
FY 2014 : // $71000
FY 2015 : // $80000
FY 2016 : // $90000
FY 2017 : // $100000

Total cumulative projected cost is $406,000

At the end of FY 2017, the revenues are nearly 4x that of the expense.
We propose equity dilution of around 20% for the fund raising.

We value the company conservatively at 5x of the revenues after the end of FY 2017.
The company will be valued at approximately $2,000,000.

Based on the above valuations the Investor will get approximate return of 3x after 5 years.