The IoT Lighting Group is an early-stage growth enterprise providing a proprietary, technology-driven solution that significantly improves safety and productivity in underground mining environments. It partners with top-tier mining companies, offering smart lighting solutions automated to signal specific situations, such as guiding workers during emergencies like rock bursts using multi-coloured lights and sensors.

Referred to BSP Strategic by a legal advisor, it was found that IoT Lighting Group lacked governance practices and had financial and working capital challenges. Despite owning proprietary technology and having patent protection in Australia and the U.S., it operated in other markets without similar safeguards.

Industry

Mining Technology

Life Cycle

Early Phase

Size

18

Location

Sydney

BSP Strategic collaborated with one of IoT Automation’s founders to understand their operations, working capital, production processes, and growth plans. A detailed financial model was developed, outlining historical and forecasted performance and various scenarios. This model was crucial for the Discounted Cash Flow (DCF) valuation.

The analysis determined an Enterprise Value of $15.0m and an Equity Value of $13.5m after accounting for high-interest debt.

BSP was engaged to help IoT Lighting Group enhance its business value. The valuation revealed key risks and growth opportunities. At the start, IoT Lighting had only 4 customers, fluctuating performance, recent losses, and revenue of around AUD $4m, but possessed innovative, proven technology used in major underground mines.

BSP focused on addressing the key risks and growth opportunities. To resolve working capital issues, BSP reduced high-interest debt and raised equity funding at a $12m+ valuation.

They created a pitch deck to attract investors, leading to a cornerstone investment of $1.2m, later followed by an additional $2m through a convertible note. BSP further leveraged its network to secure an extra $1.5m, used for debt repayment, new product development, and scaling up production.

BSP implemented changes in accounting policies and practices, introducing a cloud-based inventory management solution to manage multiple warehouses in different currencies and streamline complex production processes.

We also helped enhance accountability across sales, engineering, and management, while taking a leading role on the advisory board for financial reporting and strategic governance.

BSP Strategic conducted extensive market research, evaluating global M&A transactions and mapping potential acquirers (“the buyers universe”). They developed a strategic business plan, including an implementation schedule approved by the board.

This plan analysed industry trends like digitalisation, electrification, and automation, outlining value-building activities such as product development, patent protection, and platform interoperability with key OEMs. It aimed to grow Enterprise Value from $15 million to $100 million over five years, becoming the cornerstone of ongoing growth initiatives.

Three years later, the company has significantly reduced its reliance on high-interest debt, expanded patent coverage across key markets, moved production to China (increasing gross margins), and finalised production of a tunnel-specific lighting module.

With impressive EBITDA results, the company is now estimated at $40–$60 million in value. Effective marketing and relationship-building have led to unsolicited partnership offers, indicating potential for expanded investment or acquisition.