The investment thesis for our investment in Oditly, an enterprise-ready SaaS platform that monitors and manages inspection workflows.
Compliance is a growing burden with serious consequences going beyond mere fines. A recent study, for instance, revealed that the average cost of non-compliance for US organizations has surged over 40% in a decade, reaching around $15 million1.
As a result, ensuring Quality, Health, Safety, and Environment (QHSE) compliance, a regulatory practice for ensuring superior product quality, employee well-being, and responsible environmental impact, has become increasingly vital for organizations. Despite their importance, QHSE systems, unfortunately, suffer from fragmentation and reliance on outdated, manual processes.
Common challenges include:
- Large volumes of spreadsheets: These spreadsheet-based forms and checklists, which collect compliance-related data, lack mobility, accuracy, automation, and workflow triggers, limiting their eventual effectiveness.
- Dated standard operating procedure (SOP) checks: This frequently involves human intervention in scheduling and deploying inspections, which is a laborious and tedious process, to adhere to the respective SOPs.
- Manual tracking of tasks: Current systems need manual monitoring with regards to assigning jobs and follow-up actions, which can be unproductive and resource-intensive.
- Inconsequential qualitative inspections: Supporting photographs and videos from inspections are typically distributed across several distinct forms/databases, making it difficult to collate, comprehend, and, hence, take action.
Additional challenge for management:
Such fragmented, manual systems, further, create a challenge for senior management who struggle in analyzing scattered outputs from various platforms while establishing correlations between them, adding to the complexity.
Global companies need a comprehensive platform that streamlines their QHSE operations to implement actionable strategies and prevent non-compliance with ease.
Oditly delivers a secure, enterprise-ready SaaS platform that monitors and manages QHSE workflows across diverse industries, resulting in cost savings and time efficiency.
1. Unified platform: Companies frequently need to manage separate systems for Quality and HSE obligations. However, Oditly offers a single, standalone platform eliminating multiple outputs from disparate sources.
2. Significant cost savings: Oditly offers a significant cost benefit compared to fragmented SaaS platforms. An example demonstrating the typical cost savings for offerings of a similar scope is as follows:
3. Smooth migration from paper-based tools: Its digital offerings replace the antiquated paper-based tools for a smooth migration and replication of existing processes & workflows within minutes.
Oditly‘s capabilities include:
- Check sheet automation: Oditly’s platform generates mobile-friendly forms that report automatically in multiple formats, consolidating data effortlessly and eliminating the risk of human error.
- Enabling smoother workflows: Its built-in task management configures automated notifications and tracking to propel productivity for companies.
- Efficient corrective tasks and training management: The platform also allows for scheduling escalations, and notifications for managing inspection-linked and ad hoc non-conformance. This is further supported by relevant training modules to enhance competency correction.
- Actionable analytics and insights: Oditly also gives access to real-time analytics directly within the platform for valuable insights to mitigate risks effectively and immediately.
Why Modulor Invested:
Why the industry?
The global EHS (Environment, Health, and Safety) market, typically dominated by North America, is set to skyrocket with a CAGR of 10.8% between 2022 and 20292, while the global process automation market is expected to grow at 5.5% annually between 2022 and 20273, thus presenting an enticing addressable market
Additionally, with rising global costs of labor and non-compliance, Oditly stands out as a comprehensive platform that consolidates QHSE process monitoring, resulting in the ease of management.
With a track record dating back to 2020, Oditly is trusted by 22 companies, covering industries such as Hospitality, Retail, F&B, Healthcare and Facility Management and embracing a total headcount of a staggering 4.7K across all its customers.
Thus far, the company has produced a 67% reduction in man hours with an impressive 5x return on investment for its enterprise customers within the first year of implementation.
The round, which was led by Modulor Capital, also saw participation from other VCs including PointOne Capital, Dholakia Ventures, Piper Serica, CIIE, 8X Ventures and Paipal Ventures.
Why are the founders best equipped to take Oditly forward?
Gaurav, one of the co-founders, conceived the idea for Oditly while conducting mystery audits for hotels. During this process, he observed a significant gap in the hotels fulfilling their QHSE obligations.
To bridge this gap, he brought on Jasmeet, a technology expert, as the CTO. Together, they developed the SaaS platform to turn the vision of creating a comprehensive system for QHSE management into reality.
Later, Robert, a Master Mariner with 18 years of expertise in implementing operational frameworks on newly acquired ships, took on the role of CEO to further propel the company.