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SaaS Interviews with CEOs, Startups, Founders

1218 This Browser Notification Company Just Hit 400 Customers, $600k ARR

24 Nov 2018

Transcription

Chapter 1: What is the browser notification system and how does it work?

0.031 - 1.813 Nathan Latka

subscription is the way forward.

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Chapter 2: How did the company achieve $54,000 per month in revenue?

1.833 - 26.373 Nathan Latka

He's doing $54,000 per month in pure play SaaS revenue from 400 customers paying north of a hundred bucks per month for his browser notification system that he's created. They got a team of 32 people based mostly in India economics, negative 3% net negative monthly revenue churn, which is obviously super healthy lifetime value north of 13 months and $3,000 payback period, less than nine months.

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Chapter 3: What is the customer base size and pricing model for the service?

26.393 - 53.859 Nathan Latka

They're growing quickly and he's doing it bootstrapped, which I love. This is the Top Entrepreneurs Podcast, where founders share how they started their companies and got filthy rich or crash and burn. Each episode features revenue numbers, customer counts, and other insider information that creates business news headlines. We went from a couple hundred thousand dollars to 2.7 million.

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54.099 - 55.802 Vivek Kendalwal

I had no money when I started the company.

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Chapter 4: When was the company launched and what is its backstory?

56.103 - 69.798 Nathan Latka

It was $160 million, which is the size of many IPOs. We're a bit strapped. We have like 22,000 customers. With over 5 million downloads in a very short amount of time, major outlets like Inc.

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Chapter 5: What previous experience does the founder have in the telecom sector?

69.818 - 89.283 Nathan Latka

are calling us the fastest growing business show on iTunes. I'm your host, Nathan Latka, and here's today's episode. Hello, everyone. My guest today is Vivek Kendalwal. He is a two-time founder with experience of building MarTech products. He's got experience of working across telecom, education, and MarTech, building products that have touched over 100 million users.

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89.683 - 106.127 Nathan Latka

He's passionate about how mobile and web are shaping the future. And on the sidelines, he loves cycling and catching up with his favorite podcasts. Vivek, are you ready to take us to the top? Sure. All right. Good. Tell us about your current company, Datability, and you've got a product, I believe. Let's jump into that. What do you guys do and how do you make money?

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Chapter 6: How is customer churn managed in the subscription model?

107.407 - 130.838 Vivek Kendalwal

All right. We run a product called Izuto, which is a browser notification platform for retailers and publishers. Classic SaaS product where retailers use Izuto to push notifications to their users for retargeting, engagement, retention, right? And they pay us on a monthly basis for usage.

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132.24 - 135.304 Nathan Latka

And so like on average, what's the customer paying you per month, would you say?

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136.162 - 142.388 Vivek Kendalwal

Our typical customer or retailer would be paying us anywhere between $150 to $200 as of now.

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142.629 - 149.396 Nathan Latka

Okay. And what controls how much money they're paying you? Is it number of notifications sent, number of website hits? What is it?

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150.437 - 160.547 Vivek Kendalwal

Right. So our pricing is based on their growth metric, which is the number of subscribers who have opted in to receive notifications. Yeah.

160.567 - 160.667

Okay.

161.255 - 169.272 Nathan Latka

Okay. And are these the things when you go to like a retailer site, it'll have a little pop up across the top that says, Hey, like allow us to ping you when a new product comes out or something like that.

169.653 - 169.894 Vivek Kendalwal

Yeah.

Chapter 7: What strategies are used for customer acquisition and growth?

170.194 - 171.978 Vivek Kendalwal

Yeah. Yeah. Yes. Absolutely. Yes.

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172.239 - 181.238 Nathan Latka

Okay, great. So, so again, these customers paying anywhere between 150 and 200 bucks a month and they're paying based on how many subscribers opt in. Give me more of the backstory here. So when did you launch the company?

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182.332 - 191.347 Vivek Kendalwal

We started off almost two years, two months back. We started in March 16. Okay, 2016. A year and two months, two years, two months, yeah.

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191.367 - 200.762 Nathan Latka

And you have a history kind of in working across many different product lines. Give me a sense of what the products were that you said you drove over 100 million users on and why jump directly into MarTech?

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203.105 - 214.883 Vivek Kendalwal

So prior to this, we used to work on products which were dealing with telecom operators. We used to work with almost all the leading operators in India, which includes Vodafone, Airtel, and so on and so forth.

Chapter 8: What is the expected lifetime value of customers for this service?

215.004 - 228.184 Vivek Kendalwal

We are building mobile products which are delivered over either SMS, USSD, voice, or mobile web. We go as back as 2010-11 right now.

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228.637 - 254.492 Vivek Kendalwal

uh we built a company for almost about six years uh seven years in fact right uh we had built solutions around ed around edtech uh and then we had done we had basically uh fled the same platform and turned into an ad tech platform as well right uh there we sort of i mean because we worked with almost all the large operators in india we covered close to about at a point that we were covering almost about

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254.843 - 258.874 Vivek Kendalwal

350 odd million users across all the operators.

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259.115 - 263.206 Nathan Latka

Yeah, but what does that mean? I don't understand. So you worked all these platforms. What were you delivering for them?

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264.831 - 290.672 Vivek Kendalwal

We were helping these operators monetize their subscriber base. Yeah. So all the operators enjoy access to a certain amount of inventory across their user base. And this inventory exists in multiple formats. This inventory exists on voice calls, on SMS, on USSD. We were helping operators, these operators, monetize this inventory using our platform.

290.692 - 299.7 Nathan Latka

You mean like literally someone in India would open up their messages that people have texted them and one of the messages would be an advertisement that you monetized for the network?

300.777 - 322.942 Vivek Kendalwal

Yes. For instance, you made a phone call to a friend. You got the call. You got a balance alert or SMS. And that balance alert was then appended with a small text ad. What do you mean a balance alert? Sorry, your prepaid balance, your mobile top-up time.

323.303 - 327.207 Nathan Latka

So I'm calling you in India. You're one of my friends. In the middle of a phone call, I get an ad? Yes.

327.794 - 335.648 Vivek Kendalwal

Now, after the phone call ends, you are informed that you have X many minutes left in your talk time. And by the way, here is an ad for you.

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