Reasons To Invest

• Innovative Solution: Clevertar is at the forefront of applied artificial intelligence and is poised to disrupt the market’s expectation for customer engagement in eCommerce. Development of proprietary technologies within Conversagent provides Clevertar with competitive advantages and potential barriers for competitors.

• Proven Track Record and Industry Recognition: Clevertar has a strong history of bespoke customer engagement solutions with highly credentialed customers including Australian Bureau of Statistics, State Government of South Australia, Bupa, Sanofi, Treasury Wine Estates, UniSA, Flinders University, and many more.  We were awarded an iAward in 2022 for our work on the ABS Census’ conversational AI chatbot.

• Strong Market Position and Growth Potential: With 120 Shopify customers in 8 months and a strong customer acquisition strategy, Clevertar has demonstrated its market appeal and is poised for international expansion and significant growth.

• Experienced and Passionate Team: The leadership team at Clevertar bring a wealth of experience in Artificial Intelligence technology, knowledge of eCommerce,  and SaaS product growth. The shared passion for innovation and disruption drives Clevertar’s vision and strategic direction making this an unmatched investment opportunity.

• Strategic Expansion Plans: The Company has a clear, multi-phase strategy to capture the US Shopify market, one of the largest and most lucrative eCommerce platforms globally.​

• Highly Scalable Business Model: The subscription-based model for Conversagent offers predictable, recurring revenue and high scalability without corresponding increases in operational costs. This model enables clients to pay a recurring fee to access the Conversagent platform, which in turn provides a steady cash flow. Predictable revenue is highly valued by investors as it facilitates better financial planning and stability.

The Problem

In the ever-evolving eCommerce landscape, consumers are inundated with choices, often leading to decision paralysis and information overload.

Buyers seek prompt answers to critical questions through their purchase journey, but the prevalent customer support systems fail to deliver, resulting in low conversion rates, frustration for consumers and negative feedback for merchants. 

The communication breakdown is further compounded by changing consumer preferences. A significant 73% of Millennials prefer to avoid phone calls, expecting immediate online interactions instead. 

Every year, e-commerce brands allocate billions of dollars toward advertising (an estimated $34 billion in the U.S. alone in 2023), all intending to drive additional traffic to their websites. However, if these sites still fail to convert all this new traffic into consumers, they’re likely making a significant oversight somewhere in their funnel– one that is costing many sellers a lot of money in potential revenue each year.

The growing eCommerce industry has reached a tipping point:

• As product complexity escalates and life cycles dwindle, traditional human-centred customer engagement struggles to keep pace. Training staff has become a daunting and costly task, especially for small teams managing extensive product ranges. 

• Despite advancements, customer experience challenges persist. Issues like rude customer service agents, the need to repeat themselves multiple times, and especially the delay in receiving replies — which 53% of consumers find extremely frustrating — are all aspects that have marred the customer service landscape.

• The industry, propelled by rising consumer expectations for convenience and one-click experiences, is outgrowing the outdated engagement models. Today's consumers expect every digital interaction to mirror the seamless, efficient processes they've grown accustomed to across other technology-enabled aspects of their lives.

The Solution

Conversagent is an AI-driven shop assistant engineered by Clevertar to enhance the e-commerce customer journey. It differentiates itself from conventional chatbots by focusing on comprehensive customer engagement, which begins at the early stages of the purchase journey and continues through to the buying decision.

Key Features and Benefits:

Early Engagement: Conversagent activates at the beginning of the customer interaction, providing answers and guidance tailored to individual needs. Metrics indicate a 4x average  increase in conversion rates and a rise in average order value (in some cases up to double) due to this proactive approach.

Revenue Goal Support: The AI system offers more than automated responses; it analyses customer interactions to deliver insights that help store owners achieve their financial targets. This strategic analysis is aimed at enhancing business performance.

Customer Experience and Retention: By improving customer interactions, Conversagent contributes to a positive shopping experience, encouraging first-time buyers to become repeat customers, thereby potentially increasing customer lifetime value.

Insightful Analytics: The platform provides in-depth analytics, uncovering customer behaviour patterns to inform business decisions and drive revenue growth. These insights can guide store owners in refining their engagement strategies.

Conversagent is designed to be a solution for e-commerce businesses seeking to elevate their customer service and sales performance. It offers a unique combination of early customer engagement, strategic insights for revenue growth, and actionable analytics, all aimed at improving the customer experience and business outcomes.

The Industry

There’s been a sustained growth in eCommerce after the COVID pandemic surge due to increased internet and mobile penetration, a shift in convenience and accessibility, and enhanced logistics and supply chain efficiencies. The global eCommerce market is expected to grow at a CAGR of 9.83% between 2024-2028. There are an estimated 24.5 million online stores (49.1%, or more than 13 million, are in the USA. In the UK, 4.7%, 2.4% in Australia, 2.7% in Germany, and 2.7% in Brazil.). The overall retail market is trending towards eCommerce as it’s estimated to account for 21.9% of retail sales in 2025 (an increase from 14.2% in 2021).

Of the global market, 4.5 million ecommerce websites (25%) are hosted on Shopify of which 2.5 million of these are in the USA.

The continued growth in eCommerce, however, has meant that marketing costs (for SEO and SEM) are 60% more expensive than they were five years ago AND their effectiveness has dropped by 15-20% at the same time. This means that online retailers must ensure that they’re doing everything they can to convert every customer who finds their store.

Competitive Advantage

The eCommerce industry is a complex and extremely competitive industry, with businesses constantly looking for ways to improve their efficiency and profitability. A solution like Conversagent, that can help businesses improve their customer experience and increase their bottom line in terms of increased sales, can be a highly valuable competitive advantage.

There are several competitors now in this space, none of which gained a first-to-market advantage, however, Clevertar’s experience in the space, its strong competitive differentiation and proprietary technologies, and unique go-to-market strategy position it well to capitalise on the market opportunity.

Business Model

Clevertar operates a subscription-based B2B SaaS business model, providing an AI-powered shop assistant, Conversagent, designed specifically for eCommerce businesses. Our platform is integrated within eCommerce frameworks like Shopify and can be installed to a merchant’s eCommerce store within minutes with zero technical skills required. We offer a 21-day free trial and the speed and ease of installation provides a risk-free opportunity for our customers to try and love the app.

Conversagent has been successfully deployed to over 120 Shopify customers since its market introduction in 2023. 

Revenue Generation:

Clevertar generates revenue primarily through subscription fees for access to its Conversagent platform. We offer scalable pricing models to accommodate the diverse needs of small to large eCommerce businesses, ensuring a broad market appeal and flexibility. The AI-driven insights and enhancements provided by Conversagent are designed to increase conversion rates and customer retention for our clients, which in turn drives the continuous growth of our subscription base.

Capacity and Future Growth

With an established customer base and proven market desire in the Shopify ecosystem, Clevertar plans to expand its reach within the US market, which presents a substantial growth opportunity. Our technology's scalability allows us to handle an increasing number of transactions and interactions without significant increases in cost, ensuring readiness for rapid expansion. Future enhancements will focus on integrating advanced AI features that further personalise shopping experiences and optimize operational efficiencies for our clients.

Investment Opportunity

Investors looking at Clevertar, can see the scalable business model, significant market potential in the US, and a track record of success and innovation. As eCommerce continues to evolve, we’re well-positioned to lead the market in customer engagement technologies, providing a valuable proposition for both businesses and their customers.

Business Achievements/Traction

Since its inception, Clevertar has demonstrated significant progress in product development, commercialisation, and market penetration. We’ve worked with highly credential customers such as the Australian Bureau of Statistics, State Government of SA, Treasury Estate Wines, Australian Red Cross, BUPA, Mate Telecom, Flinders University, and UniSA.

Through early 2023, extensive market research was conducted in close consultation with potential customers, ensuring the development of an MVP (Minimum Viable Product) that closely aligns with market needs and customer expectations. This early engagement helped refine our offering, leading to the successful launch of the MVP in June 2023.

Following the launch, Clevertar quickly transitioned to commercial success, onboarding its first batch of paying customers by November 2023. This rapid market entry underscores the demand and market fit for our Conversagent platform. Currently, Clevertar proudly serves a growing base of 120 Shopify customers, highlighting our successful penetration and acceptance in the eCommerce sector. Our early month-on-month revenue growth is averaging 414% growth since our commercial launch.

Risks

Funding and Cash Flow: The Company is in the process of raising funds to achieve its strategic business objectives and to cover its projected operating expenses. The Company may not raise all of the required funding and therefore not achieve all of its business objectives.  This means that the current cash reserves (plus proceeds of the Offer) may not provide the Company with sufficient working capital. Accordingly, the Company may need to obtain additional funding in the future. There is no assurance that the Company will be able to obtain additional rounds of funding on substantially the same terms as outlined in this Offer Document or at all. The Company’s value may be materially affected if the required additional funding is not available. 

Increasing Competition: The Company operates in the tech industry. The growing market could attract new competitors or lead to existing ones innovating, potentially decreasing Clevertar’s market share.

Production Capacity: With successful uptake and expansion, the Company will need to scale operations in line with demand. This requires careful management to avoid inefficiencies and customer dissatisfaction.

Retention of Key Staff: The Company is susceptible to the untimely loss of key personnel who are considered critical to the success of the Company. If key personnel were to leave the organisation, they would need to be replaced in a timely fashion in order for the Company to achieve its business objectives. 

Cyber Security Risk: The Company utilised technology across all aspects of its business. If any technologies were to fail without notice, or a data breach were to occur, it could interrupt the Company’s ability to provide services to, or communicate with customers, which could impact revenue, profitability and/or adversely impact its reputation. 

Supplier Risk: The Company is aware that it is reliant on maintaining existing supplier relationships to provide its services and that failure to maintain such relationships may impact on its ability to provide services. 

Dilution Risk: If, in the future, the Company undertakes further funding activities, a shareholder’s interest may be diluted (if they do not participate in future fundraising rounds). 

Use of Funds

As Clevertar transitions to its next phase of growth, the raised funds will be strategically allocated to capture a significant portion of the US-based Shopify market, particularly focusing on small and scaling ecommerce businesses. Our phased approach ensures a systematic expansion and the development of a solid market presence in high-potential verticals.

Phase 1 (Complete): Foundation Expansion (February - April)

• Core Product Development and Roadmap Continuation: Enhancements and new features tailored to meet the specific demands of the US market, including scalability improvements and user interface refinements.

• Brand and Product Messaging Repositioning: A strategic overhaul of brand messaging to better resonate with US customers and differentiate from competitors.

• Low-Touch Customer Acquisition Strategies: Implementation of scalable marketing efforts such as content marketing, lead magnets, digital product marketing, and influencer connections to build brand awareness and generate leads efficiently.

Phase 2: Vertical Market Seeding (May - July)

• Vertical Narrative Development: Creating compelling narratives and use cases for selected verticals to establish Clevertar as a thought leader.

• Expanded Low-Touch Customer Acquisition: Enhancing and refining marketing strategies from Phase 1 to focus sharply on targeted verticals, optimising engagement and ROI.

• Strategic Partnerships and Affiliate Programs: Partnering with eCommerce website developers, digital marketing agencies, and complementary Shopify app providers to leverage existing networks for deeper market penetration and collaborative growth.

Phase 3: Vertical-Specific MVP Launch (August and beyond)

• Launch of Tailored MVPs: Introducing customized versions of Conversagent for each targeted vertical to address specific needs and challenges.

• Targeted Sales Outreach: Focused outreach to category leaders and key decision-makers within each target vertical to establish strong presence and drive adoption.

Investing in these strategic initiatives will enable Clevertar to:

• Strengthen Its Market Position: By focusing on specific ecommerce verticals, Clevertar will enhance its market positioning, brand recognition, and authority, setting it apart from competitors.

• Improve Product Fit and Customer Satisfaction: Tailoring solutions to meet the unique challenges of different verticals enhances product-market fit, user experience, and customer loyalty, leading to higher customer retention rates.

• Accelerate Growth and Scale Operations: With a solid foundation and targeted strategies in place, Clevertar is positioned to scale operations, expand its customer base significantly, and ultimately increase revenue, ensuring a strong return on investment for stakeholders.

By focusing on these strategic areas, Clevertar aims to not only capture and dominate the US Shopify market but also create lasting impacts that will drive future growth and sustainability.

About Swarmer

Swarmer is an Australian equity crowdfunding platform connecting businesses and investors. Designed to support start-ups, growth companies and scale-ups we allow everyday investors to own a share in businesses that are the future. We hold Australian Financial Services License (AFS License #507867). 

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