JustCommodity Has A Record Year
Singapore-based JustCommodity is coming off a record year according to its CEO, Mr. Joel Lou. The software vendor has been growing by more than 30% year on year over the last 3 financial years. In 2014, JustCommodity closed 8 new license deals for its CxC software that included two very large and significant deals with OLAM and Export Trading Group. While around three quarters of those new customers were based in Asia, cementing JustCommodity’s claim as a leading Asian CTRM, the remainder were either in Europe or the Middle East – Africa region.
OLAM selected JustCommodity during 2014 and is currently implementing the software for their edible oils and rubber trading desks with other trading desks to come later. Meanwhile, the company is also implementing Export Trading Group, a deal JustCommodity landed after fierce competition with several other vendors in the space. Another key win for JustCommodity may just well be unique in the industry in that the company won its first Chinese client in the form of the largest state-owned rubber company in China. Mr. Lou attributes the company’s Chinese presence and language capabilities in helping to gain a toehold in that huge but notoriously difficult Asian market.
While steadily growing its market share and consolidating its No. 1 position in the edible oils segment, JustCommodity has also been transitioning from perpetual license fees to subscription-based supply of software. In that regard, it saw its recurring revenues grow substantially over the past 2 years and expects to continue to see strong growth there. The 4th generation version of CxC is completely web-based and can be deployed and delivered as hosted in the cloud. The subscription fees include support and maintenance.
Mr. Lou told us that 2015 is expected to be another year of significant growth for JustCommodity as the Asian ags market in particular, grows rapidly. “We have seen phenomenal growth and maturing of the Ags and Softs sector here even as energy and other commodity CTRM software demand has declined. Asia is a virgin market that is growing rapidly. The only downside perhaps is that Asian buyers demand a lower price point.” However, Mr. Lou feels that with a subscription-based, in the cloud product, with compelling functionality and a track record of success, JustCommodity can continue to do well in Asia and other markets too. Currently, he believes JustCommodity to be the market leader in SE Asia for Ags and softs and the global leader in niche areas such as edible oils and rubber with potential for rapid expansion into new geographies. ComTech’s ongoing market sizing data suggests that he is right.
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