Island Labs was a subsidiary of Kiveda Holding GmbH, the leading multi-channel provider of fitted kitchens in Germany. EMH Partners GmbH, a leading private equity firm and next-generation investor by entrepreneurs for entrepreneurs, backed Kiveda in 2016. Island Labs is headquartered in Berlin, Germany and has approximately 325 staff.
With a stringent focus of being at the forefront of innovating and digitising sales processes, Island Labs had embarked on utilizing cutting edge technology to revolutionise Kiveda’s value proposition by developing an immersive technology platform that incorporates both augmented reality (AR) and virtual reality (VR) functionality. For a more efficient process control, a unified ERP and CRM platform based on Microsoft NAV was developed to coordinate and connect lead management to sales funnel, sales management, and inventory management. Lastly, a proprietary AI-driven data analytics platform enables the automated planning validation design, further enhancing the sales process efficiency.
Ultimately, customers can design and tailor their kitchen from the comfort of their own home or any other location, using 3D technology to make on-site kitchen planning a unique experience through the use of mixed reality glasses to ensure the kitchen matches their exact requirements and specifications before completing the purchase.
Following the initial success and positive impact the solution portfolio had on Kiveda, Island Labs’ position and ability to apply the solutions to adjacent industries was assessed. As a result, EMH Partners had requested Intuitus to conduct a technology and digital operations review focusing on the scalability of Island Labs’ technology products as well as their ability to perform as a standalone business.
“It became clear early on that the potential for this technology was bigger than just kitchens.” says Fabian Lang, Senior Associate at EMH Partners. “We had to consider if the technology solution was only justifiable as part of the kitchen company, or if it should be a separate company altogether? We wanted to make sure if we were to split the company into two, does the technology still hold, and is it scalable? That is when we turned to Intuitus, to help us better understand the standalone potential and scalability of Island Labs and its ecosystem.”
How Intuitus Helped
“Intuitus had the AR/VR technology world expertise especially with relevant due diligence perspective we were looking for as they had done similar projects in the past. So we knew that there wouldn’t be a lengthy adjustment period.” said Fabian.
Intuitus has a great reputation in the market and the speed and quality with which Intuitus delivers the services is a huge advantage. It was also important to us that Intutius had an objective view; the team was not swayed by our opinions. It meant we could have confidence in our investment.
“The report addressed all the questions and concerns that we had, including areas of improvement, which for a shareholder is very useful because we want to ensure that it's worth the risk to undertake.” he continued. “The 100-day plan was especially helpful to the team. The plan gave advice on how to improve on the points highlighted, which the company has been working on.”
Island Labs has just announced that it will be operating as a separate business to Kiveda, yet remaining a strategic partner to its former corporate parent. Island Labs will be purely focused on commercialising the mixed reality software for a variety of industries, including interior design, real estate, and industrial planning.