You're up, Europe

Houston SaaS company expands in Europe following acquisition

With its new German office, Houston-based DiCentral looks to grow into other European markets, such as France, Italy, and Spain. Pexels

After slowly expanding worldwide for years, a Houston-based software-as-a-service company finally has a firm footing in Europe following its acquisition of a German company.

In December, DiCentral closed its deal with a Munich-based supply chain company named Compello Germany. With that acquisition, DiCentral Europe was born. Steve Scala, executive vice president of corporate development, says the deal was made possible after the company raised $15 million from Kanye Anderson Capital Advisors LP in 2016.

"We have a large supply chain network over Asia and North America, which gave us great coverage for our clients. In Europe, however, we're dealing with different supply chains," Scala says. "We had few people on the ground in Europe even though we have clients based there as well as clients elsewhere who conduct business there. We saw the need to fill that gap."

The new German office opens doors for the company to enter other European markets, and Scala says the company is looking into France, Italy, and Spain.

Currently, DiCentral's largest offices are in Houston and Ho Chi Minh City where they employ 150 and 300 people respectively. The company, which was founded in 2000 by Chairman and CEO Thuy Mai, has about 600 employees in total, and focuses on bonding buyers and suppliers, so both sides can optimize both the physical and digital supply chain.

DiCentral offers cloud-based electronic data interchange and supply chain solutions to its clients. By using DiCentral's propriety software, its clients, which include retailers, original equipment manufacturers, suppliers and more across many industry verticals, can find solutions tailored to their business.

"Global supply chains quickly can become very complex, especially when you add web purchases or individual orders from retailers that are sent from the manufacturers but made to look like they were sent from the retailer," Scala explains.

DiCentral allows businesses to improve their visibility of the supply chain by automating fulfillments, shipping and receiving processes.

"The end result for clients, whether they are a manufacturer, retailer or a third-party involved in distribution, using our software is improving the efficiency of supply chain," Scala continues. "With our solutions, clients can ramp up their operations even when navigating incredibly complex supply chains."

As DiCentral plans its continued European expansion, the company is facing various challenges from training its new 35 employees in Munich to potential logistical and regulatory issues.

"Our primary focus in 2019 is integrating the German operations with DiCentral. There are a lot of privacy challenges in Europe with GDPR, which means we need to be smart and cautious with how to deploy data centers because of stricter data privacy rules," Scala says.

Despite the challenges, Scala expects the new acquisition to lead to large growth for the company.

"I'm excited for the future. We closed on some great business contracts last year, however, the way our business works, we don't make money until there are transactions taking place across our network," Scala says.

It can take months to fully integrate clients into the DiCentral network, but Scala looks forward to the new revenue source. New contracts with large companies will allow DiCentral to continue fueling its global growth. The company continues to grow and hire, both abroad and locally, for various positions in sales, customer support, product management and marketing.

While the business continues to grow with an eye on new market sectors and areas for expansion, the DiCentral global headquarters are still located right by NASA. As a company founded in Texas, many of its original client base is based within the state.

"Texas has been a great location for us. We have data centers here in Texas, our headquarters are in Houston, so the original infrastructure of the company is all in Texas," says Scala.


Steve Scala joined DiCentral in 2014 to focus on growing the company worldwide. Courtesy of DiCentral

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nVenue's proprietary predictive analytics appear at the bottom right corner of the screen on Apple TV broadcasts. Photo via nvenue.com

Using technology to solve big problems has always been Kelly Pracht's career, but she never thought she'd be able use her skills for the sports world she's a lifelong fan of.

After spending nearly 20 years at HP Inc. in various leadership roles and across technology, Pract was watching a baseball game when something clicked for her. Baseball — and its endless data points and metrics — wasn't serving up analytics that the fans cared about. Teams and leagues had their own metic priorities, but fans just want to engage with the game, their team, and the players.

"I saw a gap in how we handle the data coming from the field and how that can impact the fan — and nobody was getting it right," Pracht, co-founder and CEO of nVenue, tells InnovationMap. "I saw technologists coming up with the most nonsensical solutions. For fans like me, coming from my crazy sports family from West Texas where my dad was a coach, I knew that these solutions were a huge miss."

She gives the example of a wearable technology for the viewer at home that can feel what it feels like for the players on the field who get hit. Pracht says it seems like companies were trying to fit technology into the sport, rather than thinking of what the fans really wanted.

She had the idea for a data-driven fan tool in 2017 and nVenue was born. She started building out the code and the team started testing it out at Astros games at Minute Maid.

"What great years to develop this platform. It was fun — these were not boring baseball games," Pracht says. The Astros have won their division four out of the past five years, including winning the World Series in 2017.

Kelly Pracht is the CEO and co-founder of nVenue. Photo courtesy of nVenue

At first, nVenue was using historical data, and that in itself was impressive. But then, Pracht and her team decided to take it live. After building its proprietary analytics platform, nVenue could use data to make predictions in real time.

"We spent over a year — all of 2019 — mastering timing and putting it into a platform," Pracht says, explaining how they built out the artificial intelligence and designed an app for fans to interface with. "We wanted to be able to predict and play. We had over 180 people during the 2019 World Series and playoffs."

The app and algorithm were good — and nVenue expanded into football. Then, the pandemic hit and sports halted completely. Pracht says they pivoted to a B2B model but wasn't seeing any real opportunities for the platform — until the 2021 Comcast NBCUniversal SportsTech Accelerator.

"In kind of a last-ditch effort, we applied to the NBC Comcast accelerator somewhere around August or September of 2020," Pracht says, explaining that she wasn't seeing a sustainable business so it was get into the program or close up shop. "And we got in. They just resonated with everything we said — we found our people."

The accelerator gave nVenue the jumpstart it needed, and as sports returned, the company found its momentum again. Now, the company is headquartered in Dallas with 14 employees all over and three — including Pracht — in Houston. The company has raised its $3.5 million seed round co-led by KB Partners and Corazon Capital and plans to raise a Series A next year.

After a few broadcasts last season, opportunity came knocking by way of Apple TV and Houston-based TV Graphics. The companies collaborated on a deal and, two weeks before the 2022 season started, nVenue got the greenlight to have onscreen analytics on Apple TV broadcasts.

"In under two weeks we structured the deal, convinced them it worked, pulled together every bit of testing we could — by then we only had one week of pre-season games to test — and we pulled it off," Pracht says.

The technology has tons of potential when it comes to sports betting, which is a growing business across the country. Pracht says nVenue isn't looking to compete with the providers on the scene, but instead work with them as an analytics tool.

"We broke down the market down to microbets or in-the-moment bets that are going to happen annually by 2025 — it's 156 billion microbets a year, which turns out to be 3 billion a week," Pracht says.

She adds that new technologies in the streaming world – like no-delay, latency streaming — is only going to make the sports betting world more lucrative, and nVenue will be right there to ride that wave.

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