Although Hydrofix was founded in 2022, the team has only worked full-time since this summer. For the first financial year (until the end of 2023), Hydrofix realised a turnover of 16,000Eur, and for 2024 we expect to reach between 100,000Eur and 200,000Eur. This turnover is currently generated from the sale of classic water dispensers (chilled/sparkling water).
Financial plan
The financial plan is based on forecasted sales of classic smart water dispensers and smart flavoured water dispensers (Hydrofix ONE). Based on the evolution of planned sales, maintenance and supply of flavour cartridges are then included in the plan.
Evolutie Hydrofix 2024-2028
The Hydrofix ONE still needs further development to produce it on an industrial level and obtain the necessary approvals. Therefore, its planned sales will only start in autumn 2025. Each appliance has a basic set of flavour cartridges, so cartridge sales will catch up to appliance sales only later. The number does increase substantially in this respect, as flavour cartridges are sold for each appliance for five years.
Prognose inkomsten 2024-2027
After marketing the Hydrofix ONE in Belgium, we aim to sell the appliance, in cooperation with local servicing partner(s), in the Middle East, given the advantages offered by the flavourings developed for us and the high growth of flavoured waters in that region.
Investment round
The current funding (round) aims to:
further develop the device so that it can be produced at an industrial level and receive a CE mark
confirm both the device's setup and market demand through pilot projects
realise the first sales of the Hydrofix ONE
Financing through Spreds is part of a more comprehensive financing mix. Thereby, the Spreds campaign is the only one that, together with a conversion of outstanding management fees, effectively takes place as a capital increase (share issue).
Financing mix
The VLAIO grant of 194.479 Euros has been confirmed, subject to strengthening an increase in Hydrofix's long-term financing with 431.000 Euros. Hydrofix has applied for a subordinated loan (which can be converted in a later round at a 25% discount rate) with LRM of 135.000 Euros. Together with the founders' own funds/conversion of management fees and this Spreds campaign, the condition put forward will be met.
Valuation
The valuation was calculated in different ways and under several scenarios with the support of Vlerick Business School. It is based on expected results after five years and a market-based EBITDA multiple for the sector and geography in which Hydrofix operates (source: M&A monitor 2024, Vlerick Business School). The future value was discounted with an interest rate of 30% to account for the typical risks associated with a start-up.
