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

Backed by an Austin venture group, Navegate has opened a Houston outpost. Courtesy of Navegate

A growing software company backed by Austin-based Next Coast Ventures has set its eyes on a new office in Houston.

Navegate, a digital supply chain technology and services for the middle market with headquarters in Minneapolis and offices in Chicago, Los Angeles, and Shanghai, announced its new offices in Houston and Kansas City as well as a the beta version of a new software platform. The company now has 100 employees across its six offices.

"At Navegate we have a concierge-level commitment to fulfilling our clients' needs," says Nathan Dey, CEO of Navegate, in a news release. "By establishing Kansas City and Houston offices, we're expanding our footprint to have physical locations in two critical freight hubs. These locations will provide further leverage for both existing and future Navegate clients in their efforts to build best-in-class supply chains."

James Blodgett will lead the Houston office as the key accounts manager. He has more than 35 years of experience in project cargo, according to the release, and notes how important Houston is as a market considering its connection to the port.

"As a hub for cargo and oversized shipments, I'm excited to leverage our new location to strengthen customer relationships as well as grow Navegate's base for project cargo," says Blodgett in the release.

The company has financial support in Texas already. Next Coast Ventures originally got involved with the company last October when Chicago-based Saltspring Capital led Navegate's financing round. Dey, who was previously managing partner at Saltspring Capital, became CEO and chairman of Navegate as part of the recapitalization.

"Nathan has only been CEO at Navegate for less than a year and he has already done an incredible job of reinvigorating the company's mission to be the industry leader in logistics, strategically growing their global presence and incorporating customer feedback into their platform," says Michael Smerklo, co-founder and managing director of Next Coast Ventures. "Navegate's newly-designed software and commitment to having their experts on the ground in these transportation hubs show their unwavering dedication to their customers — the exact type of hands-on, innovative approach to customer service and product iteration that we strive to invest in."

The company announced that Operations Manager Adam Daugherty will lead the new Kansas City location, and that it will be rolling out a new platform, called Navegate Emerald™. The new user interface is complete with intelligent new shipment tracking and management tools that work with supply chain collaboration. Navegate Emerald has four new applications that allows customization for customers to build their own solutions depending on their needs.

"As we celebrate our 50th year in business, Navegate Emerald has ushered in a renaissance of our technology and our business as a whole," says Dey in the release. "We're thrilled to be able to help add value to our more than 600 clients' processes and transform how they do business through the utilization of these digitally-enabled supply chain tools. The breakthrough business benefits they provide will allow for reduced supply chain costs, better working capital management, improved understanding of capital at risk and more seamless communication with all supply chain constituents.