StartupTalky

Tag: SaaS Industry

  • Arjun Gulati, Co-founder, Easydesq, Revolutionizes the Flexible Workspace Industry With Innovative SaaS Solutions

    StartupTalky presents Recap’22. This is a series of interviews in which we conduct in-depth discussions with founders & industry leaders to understand their growth in 2022 and their predictions for the future.

    Flexible workspaces are becoming a popular solution for businesses of all sizes, offering a flexible and cost-effective alternative to traditional office spaces. From coworking spaces to serviced offices, the market for flexible workspaces has grown tremendously in recent years, providing businesses with a range of options to meet their specific needs and requirements.

    According to a report by Maximize Market Research, the global flexible workspace market is expected to reach a size of USD 82.71 billion by 2027, with a compound annual growth rate (CAGR) of 13.9% during the forecast period. This growth is attributed to the increasing demand for flexible workspaces, driven by the changing nature of work and the need for more flexible and cost-effective solutions to accommodate the evolving needs of businesses.

    For this Interview, we invited, Arjun Gulati, Co-founder of Easydesq, and we talked about the growth, challenges, insights, and future opportunities in the flexible workspace industry.

    StartupTalky: Arjun, what service does your company provide? What was the motivation/vision with which you started?

    Arjun: Easydesq is a SaaS-based product providing an option for employers offering to step out and work at a facility near their homes to overcome power and network issues. The company is working to reduce permanent office rentals, by making distributed work simple, seamless, and sustainable. I along with Dhruv Agarwal saw a massive opportunity in the shared workspace for corporate users. Limited supply options, and the inability of clients to verify the credibility of various operators/space providers, are some of the pain points that Easydesq is trying to solve. We are tapping into the white space of digital-first search to resolve the need for optimal office space.

    StartupTalky: What new features have been added in the past year? What is/are the USP/s of your service?

    Arjun: A digital-first approach toward turning around deals has been the USP for the brand, helping us scale at a faster rate. Easydesq has curated a cocktail of digital and offline mechanisms to reach relevant stakeholders which includes founders/ CXOs/ Senior management folks, through Digi-marketing ads on various platforms, while targeting them at special forums, industry events, etc. for the offline reach-out.

    StartupTalky: How has the flexible workspace industry changed in recent years, and how has your company adapted to these changes?

    Arjun: The co-working industry has been around for about 17 years, but it’s still relatively new. The recent boom in popularity is due to the broadening acceptance of remote working, a phenomenon that is only growing with the rise of technology. We see a massive opportunity in the shared workplace for corporate users who have to decide with only limited supply options. The co-working space has witnessed a drastic change post-Covid, in terms of choice of preferences in working spaces. Easydesq is trying to solve and tap into the white space of digital-first search to resolve the need for optimal office space.

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    Arjun: We keep ourselves informed on the latest trends and developments in our industry by allocating time for industry research, connecting with thought leaders, and leveraging social media for recent updates. Also, monthly reports are shared by Operators about their Anchor tenants, Occupancy, and new take-ups.

    StartupTalky: What key metrics do you track to check the company’s growth and performance?

    Arjun: We track Company’s growth and performance by revenue and ARR. Easydesq did $100k+ revenue last financial year and is well on track to achieve $300k+ revenue in FY 23. The company is growing 200% this financial year with aggressive plans to increase the team size and grow to achieve at least an ARR of $2mn in FY23-24.

    StartupTalky: What were the most significant challenges your company faced in the past year and how did you overcome them?

    Arjun: Facing Challenges is something very common in the start-up world, as there are a lot of new things that need to be figured out. Adapting to change is essential to effectively deal with such problems. The most significant challenge our company faced in the past year was when everything came to a standstill when 2nd covid wave hit us. People were facing personal losses and we couldn’t ask our clients to come back to the office at that time.

    How we overcome this was when we started with smaller transactions. We took a very different approach since people were scared to even leave their homes and convincing them to come back to the office was not easy. So we thought of a ‘Back to office strategy’ for all our clients which helped them call back all their employees gradually and now all our client’s offices are working on almost 90% + strength in current times.

    StartupTalky: Trust among all the stakeholders is very important for a marketplace. How do you ensure it?

    Arjun: The depth of supply options, coupled with our personal touch, for all the clients allows us to stitch customized deals for every customer. This ensures a very high repeat & referral business for us along with building trust for the company.

    StartupTalky: What are the different strategies you use for marketing? Tell us about any growth hack which you pulled off.

    Arjun: To build our presence in the industry, Easydesq actively leverages digital marketing platforms, strategic alliances and affiliate partners, direct sales channels, and events with government bodies and industry federations.

    StartupTalky: What are the important tools and software you use to run your business smoothly?

    Arjun: Easydesq is a premier destination that offers a tech-enabled platform for the workforce to search and book flexible workspaces. Offering an easy, effective, and brokerage-free solution, the company serves as a true marketplace to make an informed choice for workspace seekers. A digital-first approach toward turning around deals has been the USP for the brand, helping them scale at a faster rate. We curated a cocktail of digital and offline mechanisms to reach relevant stakeholders which includes founders/ CXOs/ Senior management folks, thru digital-marketing ads on various platforms, while targeting them at special forums, and industry events, for their offline reach-out.

    StartupTalky: What opportunities do you see for future growth in your industry in India and the world? What kind of difference in market behavior have you seen between India and the world?

    Arjun: Similar to other significant economies, Indian real estate is still in the early stages of technological adoption. The proptech market has had a significant rise over the last two years and will continue to do so going forward. The market already had a significant impact on all facets of real estate, from transactions, planning, and design, to building methods, rental, and property administration. The year 2022 was a good year for the entire real estate sector after a long gap, looking past the disruptions in the last 5-6 years caused by demonetization, the introduction of RERA & GST, the NBFC crisis, and of course, the COVID-19 pandemic. We strongly believe that the real estate sector will continue a growth trajectory in 2023 as well.

    StartupTalky: What lessons did your team learn in the past year and how will these inform your plans and strategies?

    Arjun: One thing that we learned was, there’s very less margin of error here since we are growing at a rapid pace. If we want to make it big we all have to give in our all. A company’s success is defined by team effort. Our strategy is simple, to be honest with our customers.

    StartupTalky: How do you plan to expand the Customers, service offering, and team base in the future?

    Arjun: We have serviced 40+ corporate clients in their 18-month journey so far. We plan to attract our customers through various channels including digital marketing, offline outreach, and curating a cocktail to ensure a healthy growth rate for the business. Easydesq is present across Delhi NCR and Bangalore. However, we are planning to penetrate Hyderabad, Ahmedabad, Chandigarh, Pune, and Mumbai markets by end of 2023.

    StartupTalky: One tip that you would like to share with another marketplace company founder.

    Arjun: Being an entrepreneur is not as easy as it may sound. I would suggest my friends invest more time & money in technology. We are already competing with International Property consultants and in no time aggregator’s tech will help our industry reach small and medium businesses better and faster.

    We thank Arjun for spending his valuable time and sharing his learnings with all of us.

    You can read other Recap’22 Interviews here.

  • Zluri Founder on Developing Develop Your SaaS Product

    Zluri is an enterprise SaaS Management Platform founded in 2020 by Chaithanya Yambari, Ritish Reddy Puttaparthi, and Sethu Meenakshisundaram. The startup is headquartered at San Francisco, United States. StartupTalky took the initiative to get insights around building how to build a SaaS Product.

    Insights shared by Mr.Ritish Reddy, Founder & CEO, Zluri.

    How did you get your first 10 clients for your SaaS Company?

    We got out initial customers through referrals and content marketing.

    Each of the co-founders – Ritish, Sethu, and Chaitanya – had a decade of experience building/selling enterprise software before starting Zluri. They were founding members of Knolskape and made some excellent connections while working there.

    During the ideation phase (of Zluri) itself, we had pitched ideas within our circles. So, when our MVP (minimum viable product) was ready, the first thing we did was to reach out to our network for feedback. Not only did they give helpful feedback, but a few of them were also interested in the product, and a few referred to the right people, who later became our customers.

    What’s 1 pain which you are solving for your customer?

    We help companies solve the challenges of managing SaaS applications.

    Though all companies know the benefits of SaaS, not many are aware of the problems it brings. The high adoption of SaaS in the post-pandemic era has brought new problems for IT teams, like SaaS sprawl.

    When employees themselves start purchasing apps without the purview of IT, it leads to shadow IT and SaaS sprawl. This leads to budget wastage (in the form of unused & underused apps, many apps with similar functionality, unsuitable licenses ) and brings security and compliance issues if not dealt with.

    Traditionally, these apps were managed in spreadsheets but spreadsheets have their own limitations. It is time-consuming to update the app details every time a new one is bought, but they are also prone to errors.

    Further, many tasks are not possible in spreadsheets, like app discovery, visibility into SaaS usage, automation of giving and revoking access to apps while onboarding and offboarding, etc.

    Zluri solves these issues by eliminating SaaS wastage, reducing security and compliance risks, and automating IT tasks, like provisioning and deprovisioning of apps.

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    Finding an Ideal Customer Profile is very important for SaaS startups. How did you go about doing that?

    We knew one thing from the beginning that our product would be most useful for companies using a large number of SaaS apps. So, we reached out to IT and finance directors at many enterprises, where we got many insights on who would need our product the most.

    What we found was that big organisations were still relying on on-premise software. Though they were moving towards the cloud, most software apps were still not consumed as SaaS.

    On the other hand, though recently founded startups were using SaaS apps, the problems were not painful enough to solve for immediately.

    What are your views on the Indian SaaS market?

    Indian SaaS startups are in a position to grow rapidly today. What makes this possible is the demand for software and the availability of talent and capital in the Indian market.

    The software revolution powered by the SaaS delivery model is giving rise to SaaS consumption in the domestic and international markets. Companies have seen the benefits of SaaS in events like a pandemic.

    Then we have very talented people in the Indian market who can build high-quality products quickly. We can make a prototype, iterate at high speed, fail fast, and pivot.

    We have a lot of communities that support Indian startup ecosystems, like SaaS Boomi, TiE, etc.

    Further, Indian startups can launch in multiple markets simultaneously and win big in the international markets like the US, Europe, and Southeast Asia.

    What are a few things a founder must take care of during SaaS product development?

    A SaaS product needs to be developed based on the industry and customer you will be selling to. If you take SaaS, two kinds of people will be your customer: a buyer and a user.

    Before building the product, it is essential to understand them. Your product must help the end-user deliver value, and the value must be viewable to the buyer. So, before deciding to build a product, the first step is to talk to at least 100 users to understand their problems.

    Of course, you aren’t going to come up with a solution for each of those pain points initially, but you can go after the common ones to build an MVP (minimum viable product).

    Make sure to keep note of the other problems as well and include them in your product roadmap for the next few quarters.

    After completion of the minimum viable product, get the users feedback, validate the problem-solution fit with users, and analyse the scope for improvements.

    In some cases, users might suggest a better solution for some of their problems. In those cases, instead of going blindly with their solution, see how you can use innovative emerging technologies to provide the best solution for their problem.

    Remember, customers are good at telling their problems, but their solutions are mostly not good. It’s your job to think and come up with the best solution.

    Once you get the initial users, take their feedback regularly and keep improving your product.

  • What Does an Investor Look Out for in a SaaS Product?

    With dramatic tailwinds and accelerated digital transformation, the SaaS market has grown exponentially in the last decade. The industry has managed to amass a revenue of $104 billion in 2020. By 2022, the market is expected to reach $140 billion, according to Gartner.

    Whether you’ve created a SaaS product to solve a problem or make extra income, it is a valuable asset. However, when it comes to scaling the product, you need investment. But what’s the final checkpoint that the investor looks out for in a SaaS product? It’s vital to understand how valuations and metrics work in businesses.

    Investors think a lot about characteristics that are representative of an early-stage startup. Before they invest in your company, they want to see specific metrics. And so, to help you prepare these, we’ve compiled an overview of the most crucial SaaS metrics. If you adhere to these, your valuation is bound to improve.

    1. Clear Ideal Customer Profile (ICP)
    2. AI-powered SaaS Applications
    3. Product-led Growth Strategies
    4. MRR
    5. Customer Acquisition Cost (CAC)
    6. Churn Rate
    7. EBITDA

    1. Clear Ideal Customer Profile (ICP)

    When it comes to product building and efficient selling, it’s fundamental to know your target audience. Companies that have an apparent understanding of their target customers have improved chances of success.

    Investors look for a well-defined ICP before investing in the business. Therefore, entrepreneurs should establish their ICP through apparent insights and extensive “Voice of Customer” Research. It’s also essential to build the customer base from a combination of past experiences.

    Some of the most substantial benefits of a clear ICP are:

    • An efficiently targeted go-to-market (GTM).
    • Highly focused product roadmap.
    • Shorter sales cycles and value propositions.

    2. AI-powered SaaS Applications

    Artificial intelligence plays a significant role in advancing modern software to automate work for consumers. At its core, AI-powered SaaS applications can be trained on increasingly larger datasets and be further augmented with customer-specific data. Thus, allowing users to automate tasks and make better-informed business decisions. Consequently, it will propose a unique standpoint to the investors.

    Some SaaS companies developing AI-powered applications comprise:

    • Yalochat – It is a conversational AI-powered platform that allows businesses to efficiently communicate with customers.
    • Zeni – It is an AI application that provides bookkeeping, financial reporting, and invoicing services.

    3. Product-led Growth Strategies

    The product-led growth (PLG) strategy is crucial when it comes to building SaaS companies. It allows the consumers to test the product for themselves. Without the restraint of features, users can effortlessly explore the product and infer its value.

    This not only helps businesses develop consumer-like products but also furnishes lucrative returns. The PLG strategy has become business-critical across all enterprises functioning. Companies adhering to product-led growth have increased chances of being approved by investors.

    The PLG strategy has capitalised on a few trends, including:

    • Reduced sales cycle and buying decisions.
    • Fast employment (due to the cloud-based feature).
    • Easier purchasing (swipe a card and go).
    • Intuitive onboarding and adoption.

    4. MRR

    Monthly Recurring Revenue or MRR is a leading indicator of revenue growth. Hence, it’s a well-received way to appraise SaaS businesses. Investors are more likely to consider the MRR rather than the ARR (Annual Recurring Revenue). Simply because the ARR doesn’t furnish much proof of churn.

    Big SaaS companies with high MRR can raise a sizable amount of money during seed funding rounds. If small businesses or brands are experiencing rapid growth and meet the criteria of investment, they could be valued using MRR. Below mentioned are the criteria:

    • More than $2M ARR
    • 50% growth year after year
    • Founder involvement isn’t important for the business’s survival.

    5. Customer Acquisition Cost (CAC)

    Customer acquisition cost or CAC is a significant metric to assess marketing and sales cost. It helps measure the effectiveness of your SaaS business’ customer acquisition strategy.

    Furthermore, it analyses the expense incurred (on average) to attain new consumers. CAC also represents the return on investments in sales and marketing. Thus, it is a meaningful metric for potential investors.

    An efficient customer acquisition cost allows the investors to gauge the scalability of your SaaS product or business.

    6. Churn Rate

    The churn rate is the long-term trajectory of any SaaS business. A low churn rate improves the recurring revenue, and growth rate – and curtails the risk of long-term value loss.

    Smaller companies have a higher churn rate because of less sophisticated needs and low demands. Investors would not invest in a SaaS company that experiences a high churn rate. That’s because it signifies you’re losing potential customers – and your company’s retention rate isn’t up to the mark. Hence, the churn rate is a fundamental metric that SaaS business owners need to cater to.

    Ideally, lost customers equal lost revenue. Besides, it’s far more expensive to attain new consumers than it is to retain the old ones. Therefore, businesses should focus on customer retention to improve scalability and performance.

    7. EBITDA

    EBITDA stands for earnings before interests, taxes, depreciation, and amortisation. SaaS businesses that make annual revenue of $5 million will likely use EBITDA.

    It is a substantial measure of core profit trends. This metric furnishes an accurate comparison between companies with different capital investments, tax profiles, and debt.

    Besides, it eliminates extraneous factors, boosting returns. This allows a fleshed-out infrastructure and accelerated growth in your SaaS business. Thus, making it investable.

    Conclusion

    The COVID-19 pandemic has bestowed heavy growth to the SaaS industry. With companies compelled to take their business operations online, the SaaS market has grown fierce – yet competitive.

    Seeking venture capital funding is of paramount importance in any SaaS business. Investors would only plough their money into your business when you can convince them of your company’s commercial viability and growth potential.

    To fight competition, survive, and thrive, you need to stand out from the rest. Thus, there are a few business metrics that you need to take care of. Essential metrics, such as the CAC, MRR, and Churn rate define your company’s scalability and future. Once you cater to these metrics, your SaaS business is ready to successfully attract investment.

    FAQs

    What do investors look for in a SaaS company?

    Low churn rate, Product-led growth, AI-powered SaaS applications, and EBIDTA.

    What is one of the most important metrics in a SaaS model?

    Customer lifetime value is one of the most important metrics in a SaaS model.

    What are SaaS metrics?

    SaaS metrics are different KPIs that companies measure to track their success and customer growth.

  • Building a Successful SaaS Startup: A Practical Framework That Really Works

    The article is contributed by Pankaj Gupta, Founder and CEO, EnableX.io

    The Indian SaaS industry is now firmly on the upward growth trajectory. As per the Zinnov’s Punching Through The Global Pecking Order report, in 2022 alone, the Indian SaaS industry saw a whopping 50% rise in revenue and a 3x increase in VC funding. This makes it abundantly clear that the country’s SaaS ecosystem has finally come of age. While the market is growing at breakneck speed, building a successful SaaS business is not easy. Like any business, it takes time, effort & a lot of innovation to scale a business in today’s ever-evolving environment.

    Launching a SaaS company involves many steps, which can be daunting for first-time entrepreneurs. Let’s go over the process of getting your software business started:

    1. Getting an Initial Set of Clients

    No matter what industry you’re in, every founder has the same burning question: “how will I get my first 10 customers?” The best way is to start with your existing network. It’s low-hanging fruit. Talk to the people you know. It may not yet be a big number, but in the process, you may find a few relevant connections among your friends and family. And don’t get disappointed if none of them is directly interested in using your service; they might refer to somebody who may need it.

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    2. Things Founders Must Focus on Amidst Noise

    You’re off to a good start if your product addresses a pain point or fulfils a burning need for someone and does it better, quicker, and/or cheaper than its competitor. Here are the following things that can be helpful:

    Build a Quality Product

    The success of a business depends on how well you understand the market needs and then build a product that addresses the users’ needs or problems. Therefore, spending some time and resources to understand customers’ requirements is fundamental & key to success. Once you’ve established a product-market fit, you are on the right path.

    Be Agile

    Change is the only constant, and this maxim is truer for SaaS companies. The business landscape is changing so fast that it may become obsolete by the time your product hits the market. Agility is not just about the product features; it includes everything – IT stack, business model, and culture. It should be nimble and should be able to respond faster to remain competitive. Therefore, it is essential to have a keen eye on the changing market landscape, evolving customer preferences, and competitors.

    Establish Robust Customer Support

    It might sound a cliché, but your customers are the heart of your business. Apart from the product quality, they always want to know how fast their problems can be resolved satisfactorily. Therefore, build robust customer support service that enhances the overall customer experience.

    Even if you don’t have the financial muscle to put a 24*7 customer support team, there are many options. You can use Twitter and Facebook to provide quick support. You can also implement a ticket system to manage the support request or can put a well-defined FAQ page/User Guide on the website.

    3. Building a Team That Delivers

    It is essential to have a clear vision, commitment, and sincerity to realize your vision as a founder. You must believe in your product and have a clear roadmap of how you want to take it forward. And most importantly, you need to build a competent team that can help realize your vision. While hiring people, pay attention to skills, but it should not be the sole factor. Along with qualifications and skills, hiring people with a growth mindset, the right attitude & cultural fitment are key. Also, be extra careful while building your initial team as these are the set of people who are more likely to stay with the company for a long time. They should exhibit a clear commitment and drive to achieve something and excel in their work in a fast-changing environment.

    As a founder and also your team members should be fully aware of what’s happening in the industry and what’s hot in the space. And of course, keep an eye on the competition. Know what your competitors are doing, what features they have built & what is their overall strategy. Keep tracking industry trends, technology and other news items pertaining to your industry. Networking with other startup founders, and attending industry events and peer groups is the best source to have a sense of what is happening in the environment around you!

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    Conclusion

    Building and sustaining a SaaS business can be exhilarating and overwhelming at the same time. Though there are many steps to take before you can even start thinking about making money from your SaaS business, the points discussed above are crucial to starting right!