Substrate AI prepares new steps in its strategic plan after first positive ebitda and Subgen AI's distribution

The company reported positive ebitda of 1.7 million euros in the first half of 2024 and is preparing the IPO of its subsidiaries

Madrid, September 2024. Substrate AI, the first artificial intelligence company listed on BME Growth, is in the midst of a share distribution process for its London-based generative AI subsidiary Subgen AI, which will be completed in October following the shareholder election period. Once completed, Substrate AI will retain a significant stake in Subgen AI, benefiting from its future growth, as well as becoming the exclusive distributor of Serenity Star for Spain, Africa and the Middle East. This platform, created by Subgen AI, is designed to scale the use of artificial intelligence in enterprises, enabling Substrate AI to expand its presence in these key markets.

Subgen AI is the result of the joint work of the team led by Bren Worth and Leandro Harillo, and Substrate AI's AI investment strategies. The company follows two main approaches: the first, to acquire a 70% or greater majority stake in companies that can be transformed by artificial intelligence; and the second, to invest on a minority basis in AI-driven companies where Serenity Star can play a crucial role in their growth.

Strategic investments for AI growth
In line with the first strategy, Substrate AI has acquired and transformed companies in various sectors. Currently, it has 4D Médica in the healthcare sector, Fleebe AI in human resources, Zonavalue Global in technology education (EdTech) and Save the Planet in energy. With the second strategy, it has invested in SoyGiri, a language learning startup, and Nabbu, focused on the digitization of training content. These investments are enabling Substrate AI to apply its AI technology in the education sector, transforming the way people learn by personalizing content according to the individual characteristics of each user.

With these acquisitions, Substrate AI has a portfolio of more than six companies, in which it has invested more than €30 million, as stated in its accounting valuation. The consolidation of these investments has enabled the company to achieve its first positive ebitda, driven by an increase in revenue of 256%, reaching €9.08 million in the first half of 2024. Substrate AI expects to close the year with a turnover of €20 million and an EBITDA of €4 million.

The growth of these businesses has been possible thanks to the use of artificial intelligence and the development of new products and services through Serenity Star. One outstanding example is 4D Médica, which has developed an AI-enabled diagnostic imaging software, initially aimed at the veterinary sector, but with projections of expansion into human health. This software has the potential to revolutionize medical diagnosis, enabling earlier interventions and improving patients' understanding of diseases.

Fleebe AI has created innovative AI solutions for talent acquisition and retention in human resources, with a focus on the ethical use of artificial intelligence. Its clients include global companies such as Pepsico and NTT Data, which have adopted AI to improve job satisfaction and optimize their HR processes.

The IPO of Substrate AI's subsidiaries, foreseen in its strategic plan, will mark an important milestone for the company, allowing these companies to face new stages of both organic and inorganic growth without leaving the group. These "exits", together with the positive ebitda, prepare Substrate AI to continue its acquisition strategy, transforming companies, generating joint value and offering new financing and development opportunities for an innovative and technological future.