Make better decisions with AI-powered forecasts

In this engaging episode of the Tekpon SaaS Podcast Malte, the founder and CEO of Hakio, for an in-depth conversation about Malte’s journey, innovative solutions for the fashion industry, and the evolution of AI in business applications. Recorded live from Ignite Odense in Denmark, the discussion delves into various facets of Hakio’s operations and Malte’s experiences as an entrepreneur.

What does Hakio do?

Malte introduces himself and Hakio, a software as a service company that leverages advanced analytics, machine learning, and deep learning models to assist fashion brands in optimizing their inventory and purchasing decisions. The primary goal is to ensure brands have the maximum sellable product on the shelves while minimizing waste. This approach addresses key customer concerns around availability and working capital, which are crucial for a company’s financial health and market potential.

Cristian probes deeper into the company’s capabilities, asking Malte to identify the biggest problem Hakio solves. Malte explains that from a customer perspective, it’s about improving product availability to capitalize on unmet market potential. From an environmental standpoint, it’s about reducing waste. On working capital management, he emphasizes that poor handling can be detrimental to business sustainability.

When asked about their ideal clients, Malte clarifies Hakio’s focus on larger fashion brands with significant revenue streams, starting at a minimum of €5 million annually, and preferably €10 million and above. This revenue criterion serves as a proxy for other factors like the number of SKUs, warehouses, collections, and overall business complexity.

The story of Hakio

Malte shares the origin story of Hakio, which started three years ago. Initially, the company had a broader focus on consumer brands but soon discovered its unique strength in the fashion sector. By a fortunate series of events, including landing an early fashion industry client, Hakio honed its expertise specifically for fashion brands. The sector’s unique dynamics, such as short selling seasons and complex products with long lead times, influenced this niche specialization.

Cristian inquires about the role of AI and machine learning in Hakio from the beginning. Malte, who has a background in physics and nanotechnology from the Technical University of Denmark, underscores the crucial role of AI in forecasting and decision-making, filling significant gaps left by older, less sophisticated models. He highlights his passion for applying cutting-edge math and data manipulation to solve real-world business problems.

As the discussion progresses, Malte talks about the growth and composition of Hakio’s team, currently 23 highly motivated individuals. He also recounts their funding journey, from raising a pre-seed round of €200,000 to a seed round of €3.5 million. These funds have allowed Hakio to establish a market presence and refine their product offering, edging closer to what Malte describes as product-market fit.

The conversation also explores Malte’s entrepreneurial journey, from his academic background in math and physics to his pivot into supply chain management and eventual transition to founding Hakio. He shares insights into the challenges and lessons learned from an earlier startup failure, stressing the importance of aligning partner expectations and the willingness to learn from failures.

In terms of advice for aspiring entrepreneurs, Malte emphasizes thorough preparation before pitching to investors. He advises validating the market demand and ensuring a robust team is ready to execute the business plan. His approach to sales has evolved to focus more on asking the right questions, understanding customer pain points, and offering tailored solutions.