TLDR:
- Import.io, once valued at $1 billion, was turned around by Scaleworks after running out of cash.
- Scaleworks follows strict investment criteria, buying businesses typically 5-8 years old with $3-9 million in revenue.
Scaleworks, led by Paul Lynch, acquired Import.io in January 2023 after the web data integration company fell into administration. Founded in London in 2012, Import.io had raised significant funding and was considered a hot startup. However, when a major customer pulled out, the company faced financial difficulties and was running out of cash. Scaleworks stepped in to restructure the company and stabilize its operations.
Lynch, a venture partner with Scaleworks, led the efforts to turn Import.io around. The company was moved to San Antonio, Texas, and its headquarters in India were closed, with operations shifted to Poland to save costs. The company focused on diversifying its customer base and stabilizing its revenue. Today, Import.io is growing again, with a diverse range of blue-chip clients and reliable revenue streams.
Scaleworks follows a unique investment model, focusing on buying businesses that are not experiencing exponential growth but have potential for turnaround. Lynch emphasized the importance of profitability and sustainability in tech companies, rather than just focusing on growth. The potential in Import.io is seen as higher than with previous acquisitions, with ambitious plans for future growth.
