PETALING JAYA: Loss-making tech firm Cuscapi Bhd is looking to put its past troubles behind.
The company, which had as far back as 1978 come up with nifty point-of-sale (POS) systems catering to the food and beverage (F&B) industry, did not manage to turn those offerings into profitable ventures.
But changes have been taking place at the company since 18 months ago when a new CEO was appointed.
To date, Cuscapi CEO Anthony Gerald(pic) has implemented cost trimming measures, revamped an existing product and rolled out another product, as well as ventured into new South-East Asian markets.
“Cuscapi’s legacy software is still one of the best in the market, but unfortunately, the technology platform has not evolved over the past ten years, and the company maintained itself as a traditional POS system provider.
“The technology pressure began to build up, stemming from omni-channel POS systems and cloud capabilities taking over the F&B market, coupled with changing consumer expectations.
“With these changes, Cuscapi had to embrace technology, ” said Gerald, who previously served as sales director at retail ePOS systems provider Wincor Nixdorf Malaysia.
As such, one of Gerald’s priorities for Cuscapi was to reform the group as a technology company.
This included investing in new technology, rolling out new omni channel cloud-based C360Engage, as well as upgrading the existing on-premise POS system Transight, now known as Transight V.
Transight V is an on-premise comprehensive suite of F&B business management solutions, with software modules that share an intuitive user interface.
“There was not much success overseas with the old version of Transight.
“Not only was the system outdated, but it was a product with saturated growth as marketing was only done for large F&B chains with big orders.
“We have since invested RM10mil in research and development as well as acquiring solutions which have the technology fulfilment that will bring Cuscapi’s business environment to the next level.
“Our products are developed in Malaysia and are proprietary to Cuscapi, ” Gerald explained.
He decided to exit Cuscapi’s operations in China, citing competition pressures, and relocated the R&D team back to Malaysia.
This resulted in savings of some RM10mil to RM12mil.
Apart from that, Cuscapi is shifting to a subscription model of its products, instead of the previous revenue model which entailed a hefty upfront fee for the cost of the POS machines and a small recurring maintenance fee.
The introduction of C360Engage is expected to broaden the group’s customer base going forward, given its accessibility for second and third tier F&B operators at a monthly rate of RM300 per store.
C360Engage increases operational efficiency with its inventory management features, with a hybrid cloud feature that enables real time access to restaurant data on the go and business continuity should Internet connectivity be disrupted.
An interesting feature of C360Engage is the integration and support of partner platforms like GrabFood and FoodPanda.
The F&B operators are able to streamline both in-store and delivery operations on a single system.
Cuscapi has also partnered payment aggregator iPay88 to embed an array of payment gateways in C360Engage.
Under Gerald’s direction, Cuscapi has also made inroads into several fast growth markets in the region, such as Indonesia, Vietnam and the Philippines.
The target is to achieve a market share of 55% in all countries that Cuscapi is present in.
Cuscapi currently has a market share of 50% domestically, and 30% to 60% in other countries.
With new direction and strategies in place, it remains to be seen how Gerald will steer Cuscapi to a turnaround in earnings and further growth.
While there is no targeted timeline for a turnaround in earnings, Gerald aims to increase the current installed 20,000 units, to 50,000 units over the next two to three years, mainly driven by C360Engage.