KHALIPHA | Business Case

01 / Executive Teaser

The R122 Billion Opportunity

The Crisis

40% annual tablet theft rate costs R3.2B/year
86% of learners can't read by age 10
R12B lost to credential fraud

KHALIPHA Solution

$0 street value - bricks outside geofence
Offline AI Tutor - no data costs
Blockchain verified credentials

R122Bn

Gov Savings

1.2M

Learners

13.2x

Social ROI

The Investment

Raising R4.42 Million seed round for 12-month prototype development. Unlocks R2.4B national rollout with projected 45-65% IRR.

02 / Executive Summary

The Vision

KHALIPHA is a specialized educational infrastructure device designed for South African realities. It addresses the "Hardware Gap" preventing EdTech from scaling.

Why Now?

Edge AI Maturity: NPUs now cheap enough ($45) to run LLMs offline
Political Will: 2025 coalition prioritizing education reform
Blockchain Standardization: Digital credentials now accepted

Competitive Advantage

Feature	Traditional	KHALIPHA
Theft Risk	High	Zero
Connectivity	Requires Data	Offline-First
Verification	Paper/PDF	Blockchain
Function	Consumption	Capture (AI)

03 / Product Architecture

Technical Specifications

KHALIPHA Anti-Theft Learning Unit — Exploded Component View

Hardware Core

SOC: ARM Cortex-A78 + NPU
Battery: LiFePO4, 8+ hours
Shell: Impact-resistant
BOM: $130 target

AI Capabilities

Vision: Whiteboard → Notes < 2s
Language: 11 SA languages
Tutor: Auto-generates quizzes
Privacy: No photos stored

04 / Development Plan

12-Month Roadmap (R4.42M)

Phase	Timeline	Budget
POC (3 units)	Weeks 1-10	R 420K
Functional (10 units)	Weeks 11-20	R 1.15M
Pre-Production (50 units)	Weeks 21-44	R 2.85M
TOTAL	12 Months	R 4.42M

Success Criteria

Technical

8+ hour battery verified
98% geofence reliability
< 5s AI processing

Commercial

BOM within 15% of $130
Zero theft in field test
75%+ teacher satisfaction

05 / Financial Projections

5-Year Outlook

Pilot (10k units)

Cost: $180/unit
Price: $200/unit
Margin: 11%

Scale (500k units)

Cost: $140/unit
Price: $180/unit
Margin: 29%

Year	Devices	Revenue	Net
Y1	10K	R 36M	(R 41M)
Y3	500K	R 1.7B	R 130M
Y5	1.2M	R 4.2B	R 580M

06 / Impact Framework

Triple Bottom Line

Education: >30% reading improvement via AI feedback
Efficiency: 40% → <2% theft rate, saves R3.17B/year
Integrity: 100% verification accuracy, saves R12B

R122 Billion

Total Annual Government Savings

07 / The Ask

Seed Round

R 4.42M

Funding Required

Instrument: SAFE | Runway: 14 Months

Use of Funds

R 2.85M: Hardware R&D & Tooling
R 0.9M: AI/Software Engineering
R 0.4M: Field Testing & Ops
R 0.27M: Legal & IP Protection

Timeline to Series A

Q1 2026

Close Seed & Commence Design

Q2 2026

Functional Prototype (AI Active)

Q4 2026

Field Trials & Validation

Q1 2027

Series A (R200M)

A Beautiful Social Mission Strategy

Premium products funding educational transformation. The Stanley Cup effect for African equity.

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Research Documentation

Methodology & Acknowledgments

Statistical models, economic analysis, verification methods, and academic sources.

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kabelo@kyl.solutions | 079 394 6745

Confidential Document

Theft-Proof Education Technology