DClick: Overview of the Mobile and Web Solutions Sector in Brazil

Interview with Rogério Martinelli, Director-Partner at DClick

Could you tell us about the mobile and web solutions sector now in Brazil?

In Brazil, the sector’s companies are divided into two major groups: the big companies that work with the financial sector and for the government (they dominate the services market) and which implement huge management systems; and the small and medium size companies that work to implement their own products or to implement foreign companies’ products. This sector is now dominated by 2 or 3 huge companies that implement on the financial sector and at a governmental level.

The small and medium size companies are survivors trying to implement several solutions at the same time.

DClick provides governmental services (for Petrobras), we work on the development of customized software to reach clients that have very specific needs. We have some partnerships with companies outside Brazil.

Could you tell us a little bit about the company’s history?

DClick was founded in 2006. I started the company together with my brother and two other people. It began with just an idea, and we did not even have clients – the idea was to produce software in a different way, where the front-end of the apps (the screens) were built in the most creative way possible. Our aim was to serve corporations and not institutional websites.

Our first client was Odebrecht and that gave us the opportunity to start extending our work. Odebrecht is still a very important client. Then we won some other clients and, in 2007, we celebrated our first contract with Petrobras. After winning this client, the company leaped forward.

We started this company with our own money and today we already have 200 employees, a subsidiary in Rio de Janeiro, we are going to close this year with a 35 million Brazilian Reals in revenue.

The company also provides some services like, for example, software outsourcing; we have a series of products called “DClick Holmes” which is a document manager; we have training services (only infrastructure rental); and services based on third parties technology (in partnership with IBM and Adobe).

How would you define the company’s philosophy, and what are your competitive advantages?

We are innovative and we breathe innovation. People want to work here due to our dynamics, the respect that is felt all over the company. Younger people that want to share their ideas come to work with us, because they know we will listen. We also encourage creativity and retain our talents.

Could you also refer some success cases of the company?

We have some interesting cases. For Odebrecht we started developing an expatriation system. They had a small system made in Access and we proposed to change it into a high performance system. The manager accepted and we turned it almost into the corporative system of the company. The manager was not even looking for that solution – it was a proposal we decided to make. This system was able to improve productivity on that area, it reduced the documents volume, and we also substituted an existing solution that was a part of the process and it serves 17 countries.

With Petrobras we have a huge outsourcing contract for corporate solutions: Petrobras was looking for a solution for their engineering image bank and we came up with a prototype. They loved the idea. We made a technologic partnership and today, all construction images and images from Petrobras’s events are stored on that image bank.

With Embraer we develop the system to manage aircrafts. It makes possible for the pilot to make the maintenance on his aircraft wherever he is.

The Pearson case is also very interesting. We work together to create the interactive whiteboard, with all the system leading to the management of classes with learning goals, etc.

These are very different clients searching for specific solutions.

How would you define the growth strategy of the company? Is there an interest in working outside Brazil or are you more open to the national market?

Our growth strategy for 2014 is to stabilize some contracts we already had with our clients here and to grow inside those contracts. We want to focus on our existing product called Holmes and have a good growth curve.

We think we might have an investor in 2015 that will be able to help the company grow in terms of products. In what concerns outsourcing, I will be able to maintain a 20% growth per year during the next 5 years.

Obviously, those two areas are focused on investment. If outside help comes in, we can reach higher values.

What challenges do you face on a daily basis?

My main challenge is the current situation in Brazil. As small to medium executives, we have cash flow needs and tax problems. As an executive, I have no governmental incentives for my sector. There would be a need for financing and taxation reduction. All that we have done until this moment has been done with our own resources, and we could grow a lot more if we had access to financing and if the taxes were reduced.

So to attract investment and to create partnerships would be of interest?

Yes, totally. If there is a foreign or national company that wants a partnership with us, I would be able to profit of the established organization the other part already has and grow at a higher speed and even take the ideas and products outside Brazil.

We have highly competitive products that would fit as a glove in the American and the European markets.

What would be your message to a foreign investor that might read this interview?

In DClick we believe in our growth, mainly due to our creativity and innovation. We also believe that partnerships are welcome, not only due to innovation, but also to accelerate our growth in terms of new products and new technologies.

If there is an investor that wants to come into Brazil and needs help to implement their products and solutions, we are completely available.

We have products that need investment to be able to expand and grow and DClick is and always has been open to conversations.

What is your vision for the sector 5 years from now?

What I see here is that all companies want to sell to the government and to the financial sector, because the major part of the investment is concentrated there.

In my opinion, the clients will look for more innovation and they will start paying what is fair for both innovation and quality.

What would you like to achieve for your company two years from now?

The maintenance of the contracts we have gives us a high level of confidence in the future. As for the sector, I think the scenery is still cloudy: it will depend on this year’s results (Presidential elections). 2015 will be an adapting year and 2016 will be the key-year for the sector.

What would be your advice for a foreign investor that would like to come into Brazil to invest on your sector?

I would advise the investor to come with a partnership made with a Brazilian company or with a Brazilian executive that knows the sector and can help the investor to set up a company here. Another alternative would be to come, buy an already set company, and bring his/her expertise to help the company grow.

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