MyTek Innovations looks to solve Rs 4.83L-cr proj cost overrun problem

Cost overrun in projects is a huge problem plaguing India. Delay in execution leads to serious cost overruns and some estimates suggest that India is facing a cost overrun of around Rs 4.83 lakh crore owing to such issues. Mumbai-based MyTek has come up with a digital platform that provides all project management updates in single platform. In a conversation with the Bizz Buzz, Founder and Chief Managing Director of Mytek Innovations, Shivkumar Borade said that the company’s digital platform is being used by several marquee PSUs and private sector players in project execution space.

The company’s platform provides a real time view of all project updates, cash management component and manpower management. According to the company, it aims to have a top line of Rs 300 crore in FY24, which is likely to wgrow to around Rs 1,000 crore in next two fiscal years. Borade also said that the company is planning to tap the overseas market and is in the process of opening its centre in the UK.  

Can you provide an overview about the operations of MyTek? What is the motivation behind starting the company?

We have started operations in 2020. The motivation behind starting up MyTek came from our background. We both the founders used to work in the government business. During our stints, we realised about the problems faced by the industry. For instance, if a bidder (company) wins a project from the government, it has to find subcontractors for execution. Then, they have to manage funding for execution of the project. Project planning is another aspect, they have to do. We saw companies were facing problems in all these aspects. That is the reason we see major cost overruns in government projects. I think, around Rs 4.83 lakh crore of cost overruns are being seen in the government projects.

To solve this huge problem faced by companies, we developed our digital platform. Leveraging this digital platform, companies can execute their projects in time without any delay. This saves a lot of costs for both the company and the government agencies or the private party, which has given the project for execution.

In our platform, we have onboarded subcontractors. Another major issue that we have seen is that even after winning the bid, companies are not able to execute the project properly because of cashflow issues. For cashflow management, it is necessary to procure at the right time along with management of cash flows in proper manner. Our platform, which is designed as an infra fintech platform, enables companies to have a real time view of the fund flow. So, MyTek’s platform has created an ecosystem of contractors, subcontractors, investors and related stakeholders under one platform. In the last three years, companies have received 27 per cent EBIDTA after using our platform.

Can you throw some light on the aspect from where your company gets projects?

We get projects from bidders. For instance, the contractors who bid for government projects and corporate houses operating in the construction and infrastructure sectors use our platform. As of now, around Rs 600 crore worth work order is getting executed leveraging our platform. We work in various states of the country in these projects.

MyTek works in different verticals including IT, civil work, telecom, automobile, architecture, mechanical, electrical and plumbing projects. But, these projects have different work flow and cash management requirements. Is your platform customised to suit the need of different segments?

In any project, the basic processes remain the same. We have seen up to 80 per cent of all processes for different projects are similar in nature. The rest 20 per cent customisation is required as per specific of the project. We work with various marquee PSUs in delivering their projects. We also have several big private players as our clients.

In our platform, the task is divided into several milestones. For each task, the responsible professional is also assigned. Through our platform, these tasks are tracked and real-time data is notified to managers. Even, our platform provides alerts in case a task is not completed. Thus, all the complex processes are divided into easier steps, which help in getting the project

completed in time.

Usually, the government projects face payment delay issues. Have you faced such problems because your client is not paid in time by the government agency?

We have not faced any such problem. Rather, our payments from government projects are cleared on time.

What is total team size of MyTek now? How big is the technology team?

We have a total strength of 70 as of now. As far as technology team is concerned, it is a team of around 25 people now.

Are you completely focussed in India or scouting for overseas opportunities?

Majority of our projects are getting executed in India now. However, we have overseas expansion plans. We are scouting for projects in Middle East region. We are also in the process of opening up a company in Europe. So, we will start scouting for projects in the UK. We will have a sales team in the UK. Another cofounder, who is joining soon as the Chief Technology Officer soon, will help us in getting projects in European geography.

What are your expectations as far as turnover is concerned in the current fiscal year? Can you throw some light on your growth expectations going ahead?

In the current financial year, we are targeting a revenue of around Rs 300 crore. In the next two years, we are targeting a revenue of Rs 1,000 crore.

As far as competition is concerned, of course, there is competition in this space. However, our USP is that our platform is highly customised, which enable players to complete the project in time with real time view of the progress and cash flow. This provides us a competitive advantage over other players in the market place.

Are you profitable as of now? Are you planning to raise capital given your growth plans in coming years? Can you throw some light in this aspect?

Yes, we are profitable as of now. Rather, I should say that we have been profitable from the very first year of our operations. As far as raising of capital is concerned, we are looking to raise capital in coming quarters. We are currently in talks with investors for raising external capital. We are looking at raising a capital of $20 million in this round.

Cost overrun is a big problem in several projects across sectors. Are you planning to enter other segments in the future?

We are planning to enter other segments as we realise that our platform can streamline project execution in several other sectors. For example, we are planning to enter the real estate industry and in talks with the regulator. Because a house buyer wants to know what is the current status of his/her house. Similarly, the regulator wants to know whether there has been any project delay. So, several sectors are

on our radar.