EvonSys
About this raise
EvonSys, with a valuation of $20 million, is raising funds on Wefunder. The company uses its low-code platforms to digitize and automate enterprise businesses. EvonSys helps in bringing a happy customer experience with its subject matter expertise, innovative solutions, and quality-conscious digital transformation implementation strategies. The company reported a two-times revenue growth in 2021 with more projects in the pipeline. Arun MS, Nish Fonseka, and Punna Paramasivan founded EvonSys in 2015. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $1,070,000. The campaign proceeds will be used for hiring sales employees, expanding sales infrastructure, and expanding marketing infrastructure.
Investment Overview
Invested $1,070,000 :
Deal Terms
Company & Team
Company
- Year Founded
- 2015
- Industry
- Business Services, Software, & Applications
- Tech Sector
- Distribution Model
- B2B
- Margin
- Medium
- Capital Intensity
- Low
Financials
- Revenue +78% YoY
- $14,643,323
- Monthly Burn
- Profitable
- Cash on Hand
- $1,883,878
Upgrade to gain access
-
$12.50 /month
billed annually - Free portfolio tracking, data-driven ratings, AI analysis and reports
- Plan Includes:
- Everything in Free, plus
- Company specific
Kingscrowd ratings and analyst reports
- Deal explorer and side-by-side comparison
- Startup exit and failure tracking
- Startup market filters and historical industry data
- Advanced company search ( with ratings)
- Get Edge Annual
Edge
Synopsis
Businesses across a wide range of industries are suffering from the inflexibility and inefficiency of legacy software. Clunky databases, manual processes, and systems that only a few employees possess the knowledge to update can throttle productivity.
It’s no surprise that companies everywhere are turning to low-code and no-code software solutions to modernize their workflows. These approaches can bring a legacy business into the 21st century much more quickly than a comprehensive software development project. That’s why the market for low-code development technologies is increasing by more than 20% year-over-year.
EvonSys is a low-code development services provider helping companies worldwide modernize their tech stacks. With more than 300 employees, EvonSys has a successful track record of bringing low-code solutions to life. Boasting more than $14 million in revenue in 2020, EvonSys has been a strong force in the low-code revolution.
EvonSys’ current Wefunder raise has been rated a Neutral Deal by the KingsCrowd investment team.
Price
EvonSys is raising a Crowd SAFE at a $20 million valuation. The key factor driving this valuation is EvonSys’ impressive revenue of more than $14 million in 2020 (the most recent financials available). EvonSys is a services business, so a low revenue-to-valuation multiple of 1.4x is reasonable. Investors can expect EvonSys’ valuation to increase in direct correlation with revenue. If the company can continue posting strong year-over-year growth, investors’ shares may quickly become more valuable.
Market
It’s difficult to pinpoint an exact market that EvonSys sits within. The company provides consulting and low-code development services for businesses hoping to upgrade their legacy workflows. That business model most closely aligns with the software consulting market, which is focused on helping businesses digitize. That market was valued at more than $218 billion globally as of 2020, with a fair expected 12% compound annual growth rate over the last several years.
EvonSys has a large total addressable market, given the sheer number and size of businesses in need of digital transformation. However, analysts note that markets like software consulting are at risk of decline due to pandemic-related recession. While digitization is a priority for many businesses, it may well be the first initiative on the chopping block for companies struggling to navigate the turbulent post-COVID-19 market. This risk is somewhat mitigated by EvonSys’ focus on low code development. The global low code development platform market is growing at an astonishing 38.6% annually and was valued at $12.8 billion in 2020. By operating within the overlap of software consulting and low code services, EvonSys may be better positioned to weather market hiccups.
Team
EvonSys is led by three executives with many years of combined experience in technology. EvonSys CEO Arun MS spent seven years as a vice president of technology at Citi before founding the company. His experience in helping a massive global bank modernize its technology is directly relevant to EvonSys’ consulting engagements with financial services clients.
EvonSys Executive Vice President Nishadha Fonseka has even more expertise in the technology industry. He began his career as a developer in 2000 and has spent more than two decades in development and systems architecture for a variety of businesses, including Citi and Cigna.
Punna Paramasivan, EvonSys’ CTO, also has a systems architecture background. He spent more than five years as a principal systems architect at Cognizant before joining EvonSys.
The EvonSys leadership team is composed of three executives with a great deal of expertise in the technology industry. This experience makes them well-qualified to perform technology consulting for other businesses. However, the EvonSys team could benefit from more business expertise, including executives in sales, marketing, and finance. While the company’s raise page claims that the team has grown to 300 people in size, no further insight is provided into the roles covered by those individuals. If the company has been able to generate this much revenue with a core team of technologists, imagine how much it could grow with fuel from a strong sales and marketing effort.
Differentiators
EvonSys is a services firm that is not well differentiated from the thousands of other consultancies and individual freelancers offering digitization and low-code advisory for businesses worldwide. EvonSys does not appear to have any proprietary technology or approach. It simply partners with businesses to transform their legacy workflows, a service that countless other firms could provide. EvonSys has undoubtedly been successful, with more than $14 million in revenue in 2020. However, that success seems to be attributable to general demand in the market, rather than any particular competitive advantage. It’s unclear if EvonSys will be able to maintain its growth if market demand wanes.
Performance
EvonSys was founded in 2015 and seems to have grown steadily over the last seven years. In 2015, EvonSys served only two clients. Its book of business grew to 20 clients in 2021. These client engagements must be very lucrative, because EvonSys generated $14.6 million in revenue in 2020. Even better, the company posted a profit of more than $3.3 million that year. Clearly, EvonSys has mastered the ability to provide high-margin client services.
EvonSys’ impressive revenue is by far its primary success. Beyond that multi-million dollar revenue figure, the company appears to be a relatively run-of-the-mill consultancy with standard advisory certifications from relevant software providers like Pega.
Risks
EvonSys is a low-risk investment. The company has been around for seven years and generated an impressive $14.6 million in revenue in 2020, with continued growth in recent months. EvonSys also operates at an impressive profit margin for a service business, with more than $3.3 million in net income in 2020. This is a stable, high-performing business with minimal uncertainty.
Bearish Outlook
EvonSys is an enormously successful consulting company, but it faces many of the same challenges as all services businesses. It is very difficult to scale advisory products. Signing more deals with clients necessitates hiring more staff, usually at a consistent profit margin. Plus, EvonSys faces tremendous competition from a market inundated with consultancies and individual freelancers offering identical digital transformation services. It’s impressive that the company has been able to generate so much revenue thus far, but there’s no guarantee that EvonSys can continue to differentiate itself as competition increases. EvonSys is also highly susceptible to macroeconomic forces, such as a post-pandemic global recession that could cause all corporate spending to slow.
Bullish Outlook
EvonSys is a relatively generic consulting firm offering digital transformation services to legacy businesses. But what EvonSys lacks in style, it makes up for in substance. Revenue of more than $14 million in 2020 is eye-popping, and growth has apparently continued through 2021. Digital transformation is also a growing industry, with a surprising number of legacy businesses still in need of modernization. Many experts predict that low- and no-code tools are the future of key business workflows, and EvonSys has clearly excelled at communicating this value proposition to high-paying clients. Investors getting in at this fair valuation could watch their stake grow in value as EvonSys continues to expand.
Executive Summary
EvonSys is a digital transformation consultancy providing low-code development services to legacy businesses in need of modernization. This is a growing market spurred from demand by a huge number of companies seeking to adapt their workflows to the 21st century. By far the most impressive thing about EvonSys is its financials. With more than $14.6 million in 2020 income and a net income of $3.3 million, EvonSys has clearly built a successful business model. Investors can get in at a $20 million valuation, which represents a reasonable 1.4x revenue multiple.
On the other hand, while the existing members have a great deal of technology experience, the team is lacking in business expertise. EvonSys is a generic consulting business without any key differentiators or exciting future growth prospects. It is an atypical crowdfunding candidate. Exit opportunities are less obvious than with most product-oriented businesses, and it’s not clear why EvonSys needs to raise outside capital while generating a multi-million dollar profit. Therefore, EvonSys has been rated a Neutral Deal.
For questions regarding the KingsCrowd analyst report or ratings for this company, please reach out to [email protected].
Analysis written February 25, 2022.
Company Funding & Growth
Funding history
Growth Charts
Revenue History
Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.
Valuation History
Price per Share History
Note: Share prices shown in earlier rounds may not be indicative of any stock splits.