Chilean startup DataScope is taking another big step towards its internationalization. Dedicated to helping mining companies digitize and automate their operations, DataScope recently began expanding into Mexico, thanks to new funding sources.
With the implementation of its platform, both mining companies and service providers are able to easily digitize their operations, generating key data that allows them to improve their operational indicators, all under the premise that what cannot be measured cannot be improved.
The company counts mining industry clients in Chile, including in San Pedro de Atacama, Antofagasta and Copiapó, as well as outside of Chile in Brazil, Colombia, Peru and the United States.
The challenges of the mining sector
A large part of the challenges faced by the mining industry in Chile is the high complexity of its operations, a scenario that is also repeated in Mexico, whose market size is much larger.
“Mexico is a very attractive destination for us, as its economy is much larger than Chile’s. Therefore, we can grow rapidly over the Chilean market. For the same reason, we can grow rapidly on the basis of stable clients who already trust us from Mexico,” DataScope CEO and co-founder Nicolás Serrano told Contxto.
With the emergence of new technologies, such as artificial intelligence and data mining, a range of opportunities are opening up to create solutions to operate more efficiently and securely.
The startup has adopted a bootstrap approach, carefully managing its resources to break even without relying on large rounds of external funding.
With international expansion, they have made strategic investments in key markets, which has temporarily increased their burn rate. However, these investments are aligned with their goal of sustainable growth.
The goal: USD $10 million
As for the investment received, the startup is focused on optimizing its resources and wisely choosing projects in Mexico. Serrano and another founder are in Mexico to boost DataScope’s presence.
“Our next goal is to reach an ARR (Annual Recurring Revenue) of USD $10 million. This growth will be driven by expansion in key markets internationally, as well as by consolidating our presence in sectors where we already have strong penetration,” said Serrano.
With the artificial intelligence (AI) sector booming, the startup was able to leverage technology to launch a virtual assistant that combines the power of GPT-4 Turbo with the knowledge of occupational safety experts.
Currently, 40% of its revenue comes from clients outside Chile, and this proportion is expected to increase to around 70% in five years.
When asked about investment in research and development (R&D), Serrano explained that they typically allocate a percentage of revenues to advance new developments, which allows them to stay ahead of the curve.
“We reinvest 46% of our revenues in R&D. This percentage is significantly higher than the industry average, where companies typically reinvest between 15% and 30% of their revenues in R&D. This strategic investment allows us to stay at the forefront of technology,” he said.
HJ Barraza contributed to the reporting in this article.
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