NGRD3 Neogrid

Neogrid is a Brazilian technology company founded in 1999 in Joinville, Santa Catarina, by Miguel Abuhab, with the goal of creating a collaborative network to manage the flow of information and processes among companies in the consumer chain. Since its inception, the company has focused its efforts on connecting manufacturers and retail chains through the integration of management systems (ERPs) and data flow automation, enabling the monitoring of product inventories at clients. Throughout the 2000s, Neogrid went through an intense cycle of inorganic expansion, with acquisitions such as Mercador, specialized in integration and collaborative portals, and Agentrics, a US-based software company for retail chains with a presence in dozens of countries. With the acquisition of VivaCadena and XPLAN Business Solutions, it consolidated capabilities in demand-driven inventory replenishment algorithms and supply chain consulting, establishing an international presence with offices in the United States, England, the Netherlands, and Japan.

In the Brazilian market, Neogrid expanded its portfolio with tax solutions and point-of-sale visibility, reaching R$ 100 million in net revenue in 2012 and surpassing R$ 200 million in 2019. During this period, it incorporated companies such as G2KA Sistemas, focused on Electronic Invoice solutions, electronic services and document management, and BIS Company, aimed at inventory and sales visibility for industry and retail. In 2018, the acquisition of Accera added data intelligence and significantly expanded the company’s information network and business ecosystem. At the end of 2019, Neogrid carried out its initial public offering, with its common shares starting to trade on B3 under the ticker NGRD3, and since then it has combined acquisition moves with strategic adjustments in positioning and portfolio.

From 2021 onward, already as a publicly held company, Neogrid deepened its strategy of technology applied to the consumer chain with new acquisitions and investments. Companies such as Smarket, an offer and trade marketing management platform based on data intelligence for retail, Arker, a provider of revenue growth management and trade funds management solutions, and Lett, specialized in digital trade marketing and monitoring of assortment, availability and product content in e-commerce, were incorporated. The company also made a minority investment in Horus (GRG Inovações e Tecnologia), a SaaS market intelligence company, and acquired control of Predify, focused on dynamic pricing using artificial intelligence integrated with various ERPs. In 2023, Neogrid started to prioritize organic growth, focusing on the consumer goods (CPG) and electronics markets in Brazil, reorganizing itself into business units of Commercial Intelligence, Integration, Supply Chain and Retail Execution to deepen sector expertise.

Neogrid’s business model is predominantly software-based, with 100% of its net revenue coming from the software segment, offered mainly in the SaaS (Software as a Service) model. The company operates a technology platform that connects thousands of companies in the consumer chain — raw material manufacturers, consumer goods industries, distributors, large and small retailers, governments and financial institutions — enabling the automated exchange of documents and information such as purchase orders, invoices, sales reports, inventory levels, logistics incidents, payment orders and collections. On top of this infrastructure, it delivers modular solutions organized into four major fronts: Commercial Intelligence, Integration, Supply Chain and Retail Execution, transforming transactional and market data into analyses, alerts, recommendations and operational automations.

Neogrid’s operational base covers more than 5,000 connected companies and hundreds of thousands of retail points of sale, distributed across different channels such as supermarkets, drugstore chains, department stores, e-commerces and small retailers. The company’s portfolio is especially directed at segments with high logistical complexity and strong exposure to fluctuations in consumer demand, such as fast-moving consumer goods (CPG) and electronics, which represent most of the client base and make up the current strategic focus. In addition, Neogrid also serves companies in the pharmaceutical, home and construction, and fashion sectors, among others. The solutions are modular and adaptable to the size and technological maturity of each client, allowing large and midsize companies to gradually expand their use of functionalities and integrate sales, distribution, pricing, promotion and performance monitoring processes into a single digital ecosystem.

From a technological standpoint, Neogrid operates a multi-cloud architecture supported by providers such as Microsoft Azure, Google Cloud, AWS and Huawei, with an emphasis on scalability, information security and API-based integration. The platform captures and organizes large volumes of data originating from its client network, applying advanced algorithms, machine learning models and, more recently, generative artificial intelligence to enrich and qualify the information. In 2024, the company launched NIA, a proprietary artificial intelligence focused on consumer chain management, designed to generate prescriptive insights such as ideal inventory levels, early warning signals of stockouts and recommendations for commercial actions. In the same year, it brought to market a new commercial intelligence suite, with solutions such as NeoRetail, NeoMarket and NeoDistribution, in addition to Promotrade, a platform that integrates the journeys of trade funds and commercial campaigns.

Neogrid’s operation combines technology, product and specialized service in a continuous cycle of development, delivery and support. The technology area is structured into data architecture, development and product architecture, and cloud services fronts, which handle everything from data ingestion, qualification and governance to the construction of APIs and business applications and the management of cloud infrastructure. The product teams are segmented by business units and have portfolio strategy, innovation and artificial intelligence hubs, responsible for mapping client challenges, designing new solutions and testing models through minimum viable products (MVPs). The relationship with the client base is organized under the Customer Success model, covering implementation, ERP integration, training, ongoing support and the identification of opportunities for expanded use of the solutions, contributing to the growth of recurring revenue per client.

In capital markets terms, Neogrid’s common shares are listed and traded on B3 under the code NGRD3, reflecting the company’s strategic decisions, financial results and the evolution of its technology portfolio. Since the IPO, the company has undertaken corporate moves such as share buyback programs, adjustments to share capital and a reverse stock split followed by a stock split, with the goal of aligning the share structure and share price with the rules and practices of the Brazilian stock market. There is no relevant concentration of revenue in a single client, as no individual contracts responsible for more than 10% of net revenue have been identified in recent periods, which indicates a diversified base of buyers for its software solutions.

From a regulatory standpoint, Neogrid does not depend on specific concessions or authorizations from sector agencies to operate its technology and software activities, but it is subject to compliance with federal, state and municipal laws related to the operation of its offices, such as land use and operating permits and Fire Department inspection certificates. The company also operates in a regulatory environment that is increasingly demanding with regard to personal data protection, especially after the enactment of the General Data Protection Law (LGPD) in Brazil. This regulatory framework establishes principles, legal bases, data subject rights and sanctions applicable to the processing of personal data, under the supervision of the National Data Protection Authority (ANPD). Neogrid’s operation, based on the collection, integration and analysis of large volumes of data originating from the consumer chain, requires robust information security governance, access control, model monitoring and adherence to privacy requirements, factors that directly influence its internal processes and the offering of solutions to the market.