IT is a familiar tale in the online business world – a local innovator offshores its development work in an emerging market and then seeks to crack a big market like the US as a company maker.
Multi-category search engine Odusee’s strategy is precisely that; with its current Australian focus more of a proof of concept, which has the added benefit of aligning the service provider with the big online businesses it will be courting when it heads to North America.
The business, which recently won internet business association eGroup’s inaugural PitchFest award, has focused on searching 11 major categories, including travel and careers, adopting a mix of general search engines such as Google and specific search engines such as Expedia to help users find the product or service they want.
While that might sound like an ambitious objective, Odusee already has done business with most of the big players on the supply side of the market. It employs 60 staff, has an offshore development centre, and is well capitalised.
One of the differences between Odusee and its e-commerce predecessors, however, is the experience behind the business, people who can take advantage of the path well trodden by a decade or more of earlier internet pioneers.
An interesting, and largely overlooked, example of earlier internet success is that of V3, a travel industry brokerage led by former WA Tourism Commission CEO Shane Crockett, which now has most of its business coming out of its UK operations.
More than 10 years after the tech wreck of the dot.com era, Odusee’s management knows its business success is not just based on clicks or views, but how to monetise that with solid contracts and established commercial relationships.
Odusee was founded by Miles Cue, who co-started national nursing agency business Mediserve, and his cousin Francis.
It raised $500,000 last year, and plans to raise a further $1.5 million over the next 12 months, which CEO Milko Radotic – an established manager and former executive at ThinkSmart recruited to run the company – claims will take the company to a position where it is cash flow positive.
A big number of the company’s employees are based in the Philippines at a development centre in Cebu run by Francis Cue.
“We are in the Australian market, we have used it to test the market,” Mr Radotic said.
“We are launching in three to four months in the US and Canada.
“A lot of the content partners are the same.”
If things go well, Mr Radotic said, a listing on the technology focused, US-based Nasdaq exchange was a potential option in a couple of years.
Odusee’s PitchFest win two weeks ago includes attendance at Curtin University Ignition program for inventors and entrepreneurs.
PitchFest participants were given 12 minutes to pitch their business, including five minutes of questions time.
Judges on the Pitch Fest panel included Rent.com.au CEO and eGroup president Mark Woschnak, Commtech Wireless founder Nathan Buzza, WA angel investor group representative Jim Tweedle, Capital Technologies founder Paul Kristensen, and PwC head of digital Jag Sanger.
Other contestants who received favourable mentions from the judging panel were Chris Bjorkland from BeaverQuotes.com, Kevin Owens from Calico.com.au and Anthony Eisenberg from 1300 takeaway.
Mr Woschnak said the importance of online activity was growing as the lines blurred between internet-based businesses and traditional companies.
“It is this Christmas, for instance, you are going to see the effect of online on retail,” he said.
“That means retailers have to improve.”
He said the National Broadband Network would help regional businesses compete, but it was not about the infrastructure alone.
“The NBN from eGroup’s point of view is fantastic but it highlights the fact that pipe is pipe and its only useful when there are businesses offering services via it,” Mr Woschnak said.
“That is why businesses now have to work out how to utilise the infrastructure to the benefit of their consumers.”
