NowVertical Group Inc, a leading data analytics and AI solutions company, announced the appointment of Sandeep Mendiratta as Chief Executive Officer of the Company. Mr. Mendiratta’s appointment is a critical step in the strategic reorganization of NowVertical designed to fast-track the integration of its global asset base and propel the company into its next phase of growth.
Mr. Mendiratta joined NowVertical in January 2023 as the former CEO of Acrotrend during the Acrotrend acquisition. He has a proven track record of scaling businesses, is a seasoned expert in the data analytics industry, and is a well-respected leader within the Company.
To support Mr. Mendiratta, the Company is also pleased to announce that Santiago Trógolo, former CEO of CoreBI, acquired by NowVertical in February 2022, will be promoted to EVP LATAM, and Mostafa Hashem, former CEO of Smartlytics, acquired by NowVertical in January 2023, will be promoted to EVP Product and Technology. Each of Mr. Mendiratta, and Mr. Hashem, have meaningful shareholdings in NowVertical and are directly aligned with other shareholders.
Over the last three years, NowVertical’s strategic acquisitions have positioned the Company as a powerhouse in data science, advanced AI solutions, and pragmatic data consultancy. This evolution has empowered NowVertical to offer comprehensive data management services to top-tier global clients spanning diverse industries and regions.
However, over the past six months, NowVertical’s board of directors (the “Board”) determined that the Company had not maximized the expected benefit from the integration of the Company’s acquisitions, nor was it effectively positioning those business units or their respective leadership teams for success.
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The Board also determined that the current course of growth, and the Company’s spending across the enterprise, was unsustainable without substantial dilution to shareholders on potentially punitive terms amid poor market conditions.
In order to preserve shareholder value and put NowVertical on a course for sustainable long-term organic and inorganic growth, the Board led several critical initiatives including:
- Empowering Business Leadership: Founders and leaders of acquired business units have assumed key leadership roles within NowVertical. These founders and leaders, distinguished experts in the data analytics space, bring not only a wealth of operational expertise but also possess long-term institutional knowledge critical for navigating the complexities of the evolving industry landscape. Integration efforts will continue to elevate key performing leaders within NowVertical.
- Aligning All Key Stakeholders: Commencing the renegotiation of commitments with key business unit stakeholders to ensure cash is paid only when available, and to create an environment where all individual stakeholders are working towards the same metrics that are relevant to the Company as a whole and not just the individual business units.
- Cost Efficiencies: Initiatives to enhance financial and operational efficiency by minimizing redundancy, fostering synergies across individual business units, and reducing corporate expenses, were accelerated in Q3. These efforts, which will continue, resulted in a substantial reduction of operating cash burn from ($3.6) million USD in Q1 2023 to just ($0.3) million USD in Q3 2023.
- Integration, Simplification and Execution: Focus on driving the integration of NowVertical’s existing business units, including across similar markets, targeting and measuring the Company’s greatest market opportunities. Deploy an easy-to-understand framework to engage with customers and prospects. Unify the Company’s global design strategy to create clarity and efficiency in NowVertical’s offering. Execute on strategic account growth opportunities. Drive engagement and profitability through long-term recurring revenue.
SOURCE: GlobeNewswire