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Qlower
WHATS THE PROBLEM?
Landlords face the painful task of filing tax returns each financial year (a burden many of us know!).
This involves paying a chartered accountant over €1000, and scanning and uploading every receipt to a cloud system.
Even after this, landlords could be waiting up to 2 months to find out their tax liabilities, making it difficult to project future cash flows.
This week's company, Qlower, uses open banking and machine learning to make the tax returns process seamless👇


Solution in a sentence: Qlower automates a landlord's accounting and tax processes in real-time, eliminating the need for manual receipt uploads or accountant reviews.
Features:
Identifies missing expenses and categorises this into the right tax option, potentially reducing the final tax bill for the landlord.
Provides a rental management service such as checking legal documents and tenancy agreements.
Assists with other financial aspects of owning properties such as negotiating bank loans / mortgages and property insurance.

Company breakdown:
Industry: PropTech / Tax & Accounting
Headquarters: Paris
Year Founded: 2020
Employee Count: 14
Investors: Didier Valet (Partner at Varsity VC), Innovexus, Bpifrance, other various angel investors.
Previously Raised: €1.5m
Currently Raising: €500k crowdfunding (overfunded by €60K+)
Business Model: SaaS B2B & B2C with upsell opportunities
Early Traction: Revenue CAGR of 600% in the past 3 years in the French market. 4166 properties managed. €197M of transactions analysed. €3,320 savings on average.

Due Diligence
WHAT WE LIKE
Large potential market size: Currently operating solely in the €1bn French market, Qlower is now targeting the rest of Europe, which they estimate to be worth approximately €13bn.
Solid customer base: Qlower has a B2C channel, but the majority of their revenue comes from the B2B stream, where they partner with French PropTech firms, banks, and real estate networks.
Limited competition: In the French market, Qlower faces limited competition, with only one other company offering a similar solution. If mass adoption can take place, they’re onto a winner!
POTENTIAL RISKS
Customer adoption: The French landlord accounting & tax market is dominated by trusted chartered accountants, making it potentially challenging to attract customers who have been loyal to their accountants for years.
Customer trust: When scaling, there is a risk that the product may generate accounting errors, leading to distrust and loss of customers.
Expansion: Qlower currently operates only in France but is targeting the rest of Europe, with their sights set on Germany next. Entry into a completely new market could prove difficult if the dynamics are significantly different from those in France.

Founding Team
Christophe Duprat, CEO - previously the Global Head of Transformation and Acceleration at Societe Generale.
Marc Lebreton, CTO - previously a Partner at Ethnic, a foundation which supports young entrepreneurs in Africa, and Administrator at Mandarine Gestion
Arnaud Gayot, CRO - previously the CEO of Coloca, and a Manager in Transaction Services at KPMG.
To request an introduction to the founders, please reply to this email.

Comparables
JD2M - an accounting firm that specialises in real estate taxation from furnished rentals. Backed by ALZA Capital Partners, BK Growth, Cedre, Relay Investments, Aken Capital
Differentiator: JD2M only covers one tax regime (furnished properties) and does approximately 35,000 tax returns each year. This represents less than 1% market share.
Have your say:
Written by Pratik
If you’d like to 🎙️pitch to us or 📣 partner with us, please respond to this email.