Deal Description

JV for IOT solution for smart street lights Opportunity – 160 million 'smart LED' streetlights (Please refer link below) https://energy.economictimes.indiatimes.com/amp/news/power/eesl-targets-installation-of-1-6-cr-more-smart-led-streetlights-by-2024/88464344 Proposed JV/New Company between LiteNet, CXO Team and investors for seed funding of IOT solution for Smart Streetlight project. The JV/New Company will offer the IOT solution to Lighting companies, System Integrators and others who will be bidding and executing the upcoming projects. LiteNet has been promoted by engineers with decades of innovation, product and solution development experience in various verticals encompassing IT, telecom, Electronics. LiteNet has developed an IOT solution that consists of the wireless node, gateway, middleware and cloud. This solution can address Connected Street lighting project. This solution has key differentiators which provide significant competitive advantage compared to existing solutions. LiteNet is soliciting seed investment of Rs.25 lakhs in the JV to build a production ready solution with a view to scale up the business and Rs.30 lakhs for initial sales and marketing. Additional investment of Rs.300 lakhs will be raised to take the solution to market in India and then to UK/Europe. The valuation of this investment ( Rs.20 lakhs + Rs.30 lakhs) will be pegged at a discount of 70% to the valuation of the company in the next round of investment subject to a minimum enterprise valuation of Rs.600 lakhs and a maximum valuation of 1200 lakhs. The seed investor for a total investment of Rs.50 lakhs will hold a minimum of 12% and a maximum of 24% post the 2 round of funding. The CXO Team will be offered an equity of 20% of the company to vest over a 3 year period. The CXO team will be responsible for complete day to day management and will cover Sales & Marketing, Operations & Support functions. The projected sales for the next 2 years would be Rs. 200.00 Million based on the supply of 300,000 control modules along with the associated gateways and software modules. The valuation of the company based on Rs.200 million topline is expected to be in the range of Rs.1000.00 million.

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