The startup , which began by solving communication problems in the forests of southern Chile, is now expanding to new markets from the United States, optimizing data synchronization in key sectors globally.
Max Echevarría, founder and CEO of Eskuad , has been living in Atlanta for a year and a half, a city that has established itself as a logistics and technology hub in the United States due to its strategic location, as it allows access to 80% of the local market in less than two hours.
The change of scenery meant that the Chilean startup managed to obtain its first round of financing for an amount of US$ 100,000, thanks to the 'Latino Founders Fund' award from Google. But it has other distinctions, which also include the award for the Most Innovative Solution from Startup Chile. In addition, it is the first technological venture from Concepción to be accepted into Tampa Bay Wave, one of the most important technological startup communities in Florida, United States.
And just a few days ago, the Techstars accelerator, where they participated in 2020, included them for the second consecutive year in its list of “recommended” companies. It is a guide in which they recommend 100 of their “interns” every semester to be used by other companies.
Eskuad is the only Chilean firm on this exclusive list.
“Eskuad's platform is designed to allow field workers to record data and synchronize it efficiently, even in remote areas with little or no connectivity,” Echevarría explains to AméricaEconomía .
It all started back in 2019 with the goal of solving a critical challenge for forestry workers in southern Chile. This region, characterized by a mountainous environment and dense forest, was facing communication problems due to an unstable signal and the reception of bounced signals, greatly complicating the data reconnection process.
“Workers who went out into the field were forced to handle various data formats and transmit information via radio or take notes on paper. They had to wait until they reached an area with better coverage to synchronize data, which meant transferring the information to a computer, possibly creating an Excel file and then sending it to its final destination,” says the Chilean engineer.
Faced with these geographical and telecommunications difficulties, but also with the aim of optimising time, Echeverría had the idea of developing an algorithm to simplify this process.
Initially unnamed, the algorithm was dubbed 'MagicSync' (or 'magic send') with the purpose of improving and simplifying data synchronization and connection under adverse conditions.
It wasn't long before they derived into Squad, but the name was Spanish-ized as Eskuad, so that it would be understandable and pronounceable by Latin and English-speaking audiences.
The biggest challenge, however, was how to present their tool in a way that would not be seen as a competition with already established giants such as SAP, Google or Microsoft, since in fact some investors in Chile considered that the platform was a bit similar to Google Forms.
“So we said, instead of competing with these giants, let’s make a tool that takes care of what they do wrong and let’s connect. So, with the Eskuad Platform we learned from them too, to show ourselves as a tool that you can customize for clients,” highlights the founder.
The bet was successful, as Eskuad - which defines itself as a field data platform as a service - has raised a total of US$ 1.84 million in financing, made up of an initial investment round of US$ 1.65 million and a prior investment of US$ 190,000.
LIMITED COVERAGE
The success of the initiative, its founders believe, is due to the fact that the problem of imperfect communications is the same in various parts of the American continent, including on American soil.
According to a study by the telecommunications company Vodafone, a poor Internet connection can cause a worker to lose up to 30 minutes of productivity a day.
“The internet coverage map in the United States shows that areas with the highest tree production, such as in Oregon, Idaho and Maine, also tend to have the lowest internet coverage,” says Echevarría. “The green areas on the map indicate where the most trees are produced, and those forested areas often have limited coverage. This means that even if there is a signal, it can be of low quality, such as 2G, which is sufficient for text messages but not for high-speed data,” he says.
According to the CEO, operating in the United States and Chile has been beneficial because these experiences can be applied to other countries with similar challenges, such as Peru and Mexico, where internet coverage and quality can be limited in forested or rural areas.
The platform offered by Eskuad not only facilitates the capture and editing of photos directly in the field, but also eliminates the need to use multiple applications for image processing. It also allows the creation of customized forms without requiring advanced technical knowledge, which facilitates its implementation in various industries and contexts.
It also integrates with ERP (Enterprise Resource Planning) systems such as SAP, Oracle and Salesforce to ensure automatic synchronization of information, optimizing the process by reducing the time spent on manual reporting.
“Unlike tech giants like Google or Microsoft, Eskuad does not compete directly with these big players in the sector. Instead, it focuses on solving specific problems that these general systems do not adequately address,” Echevarría points out.
That's how they ended up in Texas, but there, Echevarría says, they were asked to make the platform more user-friendly, so that they could operate autonomously. As a result, they developed three different products.
First, a mobile application that integrates the algorithm into the application. This application allows users to manage their tasks according to their specific settings. It can be used by both individual users and teams, adapting to different levels of complexity and operational needs.
Secondly, they developed a web panel that provides more advanced configuration options. This panel allows users to perform more complex tasks, organize workgroups, and adjust detailed settings. It is ideal for coordinating and managing large-scale operations.
Third, they implemented an API that facilitates the integration of the platform with other business systems, “such as SAP, IBM Maximo, Oracle and Salesforce.” This programming interface allows the platform to synchronize and share data with tools and systems already used by companies, improving interoperability and efficiency in data management.
“That is, what we do is create a work order that is sent through a system called Eskuad. The system receives the order and assigns it to a worker, who receives the work order directly on his cell phone. At the same time, his boss also receives a notification of the order, which is backed up in the ERP system,” explains Echevarría.
To explain how it works, the founder indicates that when the work in the field is completed, the collaborator reports his progress in the system. He marks the task as finished, reports the resources and equipment used, records personal data, and signs everything necessary. Then, he sends all this information back to Eskuad in the cloud. Thus, an operations manager who uses Eskuad can see the details of the collaborator's task, including the date, the people involved, photos, signatures, and other details. “Sending a notification of the task closure to the worker and the rest of those involved in the chain, without the need to send emails, Excel files, or manually enter SAP,” explains Echevarría.
AMERICAN EXPANSION
These integrations are what allow Eskuad to get into a specific niche and make work easier in the field, says Max Echevarría.
As for its business model, Eskuad offers a 'Freemium' plan that is currently used by 124 companies. This plan allows for basic data reconnection and digitalization.
However, monetization occurs in the 'Pro' version, which costs US$25 per user per month and is designed for managers who manage large volumes of data and need to automate reports and processes. For larger clients, Eskuad offers an 'Enterprise' version that includes advanced integrations and has an initial cost of US$2,000 per month, with the possibility of scaling according to the number of users.
In Mexico, Eskuad has generated interest, although people who have seen and tried it have not yet used it regularly. Something similar has happened in Canada, where it has also been discovered organically, without a specific expansion plan, says Echevarría.
“The case of Ecuador is particularly interesting,” says the CEO of Eskuad. “We arrived there thanks to a client of Arauco [cellulose] who moved to work in the country. Knowing our platform well, he decided to implement it in his new company.” In addition, the CEO highlights that they are exploring new innovation opportunities with the telecommunications company GTD, which operates in Peru and has expanded its activities to the mining sector.
“We have started pilots in a mining company where Eskuad could offer solutions to specific problems,” he adds.
This year, the strategy is to strengthen Eskuad's presence in key sectors such as forestry and ports. Ports, in particular, are strategic because they allow the company to expand into other industries. For example, Ultraport, a current client, serves both mining and pulp companies, which facilitates Eskuad's expansion into these sectors, says Echevarría.
In the United States, Eskuad is pursuing a similar strategy, focusing on the same industries to strengthen its presence. They have already secured a large forestry company and are beginning to expand that network of contacts. In addition, they are interested in acquiring a port, which would open the possibility of expanding to other ports in Chile and other countries.
“For this second semester, Eskuad has set out to identify which cases are working well in order to decide which countries to grow in,” he says.
As this strategy and the pilots become more established, Max Echevarría is considering the possibility of investing more in marketing in key markets such as Peru, in addition to the aforementioned Canada, Mexico and Ecuador.
“For now, Ecuador and Peru seem to be the markets with the most immediate potential…but we will let the market tell us,” he concludes.
