In the latest in a series of 2019 investments, RIB Software, the Stuttgart, Germany-based provider of cloud-based technologies for the construction and real estate industries, has announced that it has taken a strategic 15% stake in an Indian company, Winjit, which specialises in Internet of Things (IoT), artificial intelligence (AI), machine learning and blockchain.
Founded in 2004 by tech entrepreneurs Ashwin Kandoi and Abhijit Junagade, Winjit – based in Nashik – employs more than 300 people, and has sales offices in South Africa (Johannesburg) and the United States (New York and San Francisco) – both markets where RIB has struck deals this year. In June, RIB acquired 60% of USA-based BSD (Building Systems Design) to strengthen its estimating and product data capabilities and gain a bridgehead in north America (Winjit has a strong focus on the US market). A month later, RIB acquired a 70% shareholding in South Africa’s cost estimation and project control software provider CCS (which is also extending RIB’s UK presence).
RIB’s Winjit investment is based on an EBITDA multiple of 7x on expected fiscal year 2019 EBITDA. RIB acquires a 15% stake in Winjit and has the option to acquire a further controlling interest in Winjit through call options exercisable over the next four years. Winjit’s organic growth is expected to reach 40% p.a.
Winjit has developed at least three state-of-the-art software applications which RIB says will be integrated into the RIB MTWO vertical cloud platform:
- IoTSense is an advanced full-scale IoT Platform, which securely connects modern and legacy protocol sensors on the edge and cloud to provide real-time analytics, rule-based actions and machine-to-machine communication
- PredictSense is an automated machine learning platform that helps organisations solve complex real-time business problems with high-power algorithms on an open API structure
- VisionSense provides image recognition solutions to various industries’ process challenges.
In particular, RIB plans to integrate Winjit’s applications into its iTWO Facility Management and iTWO Supply Chain Management solutions. RIB says it is pushing to create “the world’s first artificial intelligence engineer, McTWO“.
Abhijit Junagade, CEO of Winjit says:
“We are excited at Winjit to be a part of the RIB family. Our strategy and focus on IoT, Artificial Intelligence and Machine Learning software applications aligns with RIB’s MTWO platform. We are looking forward to work closely with RIB teams worldwide in the AEC industry. RIB’s commitment to Winjit proves the scalability of its business model. This partnership further strengthens Winjit to serve its customers and employees much better worldwide.”
Tom Wolf, CEO of RIB Group says:
“IoT, AI, Machine Learning and Blockchain are the direction of future technologies for smart city and smart living. I am very happy to work with the two young and visionary entrepreneurs, Abhijit Junagade and Ashwin Kandoi, who shared the same vision with me to deliver the best infrastructure for the next generation. The investment in Winjit demonstrates RIB Group’s strong commitment to further strengthen our solution portfolio to advance the industry.”
Update (11 September 2019) – RIB has announced a further (unspecified) investment in India, signing an agreement with software reseller Capricot, the tenth RIB investment of 14 (worth almost US$150m) planned for 2019 . RIB says it has invested 20% with the right to consolidate Capricot into the RIB Group (somewhat vaguely) “within the next years”.
RIB takes majority stake in Winjit
Update (18 November 2020) – RIB has announced that, following the first acquisition of 15% in Winjit in August 2019 and reviewing the opportunity presented by the rapid development of IoT, AI, ML and Blockchain technology, RIB has increased its investment to 51% in Winjit. RIB has also the option to acquire additional 24.5% in 2021 and the remaining 24.5% in 2022 through call option to become the 100% shareholder of Winjit.