Vection Secures $0.7M SaaS Deal to Expand XR Reach in Latin America

Strategic Partnership with Totalplay

Vection Technologies Ltd (ASX:VR1) has announced a significant three-year SaaS agreement with Totalplay Telecomunicaciones S.A. de C.V., a leading Mexican telecommunications provider. Valued at a minimum of approximately $0.7 million, this deal centers on integrating Vection's flagship Enworks XR platform into Totalplay's service offerings, aiming to revolutionize field operations and digital transformation efforts within the telecom sector.

Totalplay, owned by Grupo Salinas, serves a broad customer base with fiber optic internet, cable TV, fixed telephony, and interactive entertainment services. Its Tier 1 global client roster makes it an ideal partner for Vection's ambitions to deepen its footprint in Latin America.

Driving Efficiency with XR and AI

The collaboration focuses on leveraging extended reality (XR) and artificial intelligence (AI) to enhance maintenance solutions and next-generation field support. By embedding Enworks XR licenses into Totalplay's ecosystem, Vection aims to reduce operational downtime, improve training efficiency, and elevate customer satisfaction through interactive support and remote collaboration tools.

Vection’s Managing Director, Gianmarco Biagi, highlighted the strategic alignment: "This partnership is set to enhance field operations and provide a top-notch customer experience through a focus on maintenance solutions. Totalplay's market reach in Mexico, and its future expansion prospects into South America, align perfectly with Vection's growth ambitions."

Terms and Growth Incentives

The agreement includes clear annual sales milestones that Totalplay must meet to retain exclusive distribution rights for Enworks in Mexico. These milestones are set at $150,000 for 2025, $250,000 for 2026, and $300,000 for 2027. Meeting these targets automatically renews exclusivity unless terminated with 60 days’ notice. Notably, exclusivity is independent of the minimum contracted revenue, ensuring a strong incentive for Totalplay to actively promote and sell Vection’s solutions.

Additionally, Totalplay has committed to making its first purchase by March 30, 2025, which will trigger the rollout of licenses and hardware for demonstrations, client presentations, and marketing activities. Both companies will collaborate on training programs and ongoing product innovation to adapt to evolving market demands.

Implications for Vection’s Market Expansion

Mexico’s telecommunications market serves as a critical gateway to the broader Latin American region. This deal not only solidifies Vection’s presence in Central America but also lays the foundation for future expansion into South America. The partnership with Totalplay could open doors to a wider customer base and accelerate adoption of XR and AI-driven enterprise solutions in a region ripe for digital transformation.

While the agreement exceeds Vection’s materiality threshold and signals promising revenue growth, the company’s future performance will hinge on meeting the outlined sales milestones and successfully scaling the deployment of its Enworks platform within Totalplay’s network.