SaaS Interviews with CEOs, Startups, Founders
Kovai $8.5m Revenue, India Bootstrapped, 3 Core SaaS Products
21 Aug 2020
Chapter 1: What revenue milestone is Kovai approaching?
When do you think you break sort of a magic 10 million ARR mark or have you already?
We are close, actually. Like, you know, we are about somewhere around 8.5 to 9, something like that. So we are very close. I think the goal is OK. That's our internal metric as well. We wanted to fit in.
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My guest today is Saravana Kumar. He's the founder and CEO of a company called Kovai.co. That's K-O-V-A-I.co. It's a multi-product software company based out of London. He built and scaled four successful B2B and SaaS products with 1,200 plus enterprise customers.
Document360 is the latest product in the portfolio, a knowledge-based product born out of their frustration writing documentation for their other enterprise products. Saravana, you ready to take us to the top?
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Chapter 2: When was Document360 launched and what inspired it?
$10K to $100K for Serverless 360? Per annum, yeah, Bestock 360, yeah.
Oh, on BizTalk 360 is... As I said, all three products are similar kind of price bracket. So an average enterprise customer will pay anywhere from $10,000 to $100,000 per annum.
Okay, but that's very different than a Document 360 customer paying $100 per month on average.
That's right. It's a completely different... experience for me. You know, we are moving from enterprising to more into like a pure SaaS, $100 ARPU, everything is metric driven kind of. It's a complete switch for us.
So that's why I was telling you, like, you know, we want to focus more on the Document360 because other products, it's a, you know, we don't have like a, you know, Stripe or Chargebee or anything. It's a typical, you know, PO and accounts and those kind of accounting system. The numbers are not very accurate, but Document360 from day one All these things were set up correctly.
So we know exactly what is the R2, LTV, CAC, and all those metrics are in our fingertips.
Is Serverless 360, those 50 customers, are they paying like $100 per month or like $10,000 per year?
It will be $10,000 per year, yeah.
Got it. So that was also an enterprise play.
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Chapter 3: How did Kovai.co evolve from a single product to multiple offerings?
Yeah. Yep, that makes sense. And if you look at your last 12 months revenue, what percent would you say each of these products make up?
Okay, still the company's 80, 90% or 80% of the revenue comes from Baystock 360 because that's our core product and that's where a majority of the company runs. But Document360 is our fastest growing product in the company now. So, yeah, I would say, you know, like I'll say like now 15, 20% of the revenue comes from Document360. I don't know the exact numbers.
That's okay.
The numbers won't match, but, you know, we're just looking at the, just at a very high level, like in terms of, okay, BizTalk360 is our number one product. And Document360, that's exactly where I'm spending a lot of my time in the last two years. And there's a lot of energy gets into this product. And this is getting faster and faster now, yeah.
Yeah, I mean, so if we just focus on BizTalk360, where there's 700 enterprise accounts, and you're saying ACVs are, you know, 10 grand to 100 grand a year. I mean, let's just assume it's $1,000 a month, right, times 700. I mean, you're doing north of $700,000 a month right now in revenue, maybe way more.
Mm-hmm. Yeah, more or less right. I think, okay, yeah, you're more or less right. 600 to 700K per month, yeah.
When do you think you break sort of a magic 10 million ARR mark? Or have you already?
No, we are close, actually. Like, you know, we are about somewhere around 8.5 to 9, something like that. So, we are very close. I think the goal is okay. That's our internal metric as well. We wanted to hit it. You know, somewhere it might. I think the gut feeling is somewhere maybe, you know, like mid of next year or early next year is we will hit it 100%. Okay, we will cross it.
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