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SaaS Interviews with CEOs, Startups, Founders

Tootris Launches Daycare as a Service, 100 Customers

25 Nov 2020

Transcription

Chapter 1: What challenges do working parents face with childcare during the pandemic?

0.031 - 26.545 Alessandra Lozama

I think that earlier in the lockdown, a lot of folks were ecstatic to go home and work remote. And I think that as you know, as we have evolved in this, in this pandemic, there are more and more employees that recognize that their productivity may not be the same at home. So what we're seeing is that the need for childcare, while earlier in this process, it was, it was it,

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26.93 - 66.765 Nathan Latka

somewhat conservative, what we're seeing now is that the demand is returning to the market. And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public.

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66.945 - 71.111 Alessandra Lozama

We've got to grow faster. Minimum is 100% over the past several years.

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71.492 - 76.74 Nathan Latka

Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise.

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Chapter 2: How does TOOTRiS help parents find childcare solutions?

76.96 - 82.789 Nathan Latka

Or Lookers CEO Frank Behan before Google acquired his company for $2.6 billion.

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82.955 - 86.979 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

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87.779 - 114.811 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked. Hello, everyone.

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114.831 - 118.817 Nathan Latka

My guest today is Alessandra Lozama. She is the founder of a company called Tutris.

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Chapter 3: What is the pricing model for employers using TOOTRiS?

118.857 - 138.51 Nathan Latka

It's a service provider that helps working parents access and secure affordable, quality childcare in real time. The company is available online or by mobile app and provides search by location, schedule, budget, and specific program distinctions, along with virtual tour capabilities, enrollment, and pay-as-you-go payment processing. Alessandra, are you ready to take us to the top?

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138.49 - 141.053 Alessandra Lozama

Absolutely. Thank you for having me here today.

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141.093 - 150.705 Nathan Latka

You bet. So first off, on the show, we usually feature exclusively SaaS founders, software as a service. You are applying software to something, but it's really a productized service. Would you agree?

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151.365 - 155.13 Alessandra Lozama

Well, it's a SaaS product in and of itself, except for we have the backend as well.

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Chapter 4: How many employees typically participate in TOOTRiS services?

155.15 - 170.86 Alessandra Lozama

So we have an operations team that helps enable placements when parents and or providers are not connecting based on their requirements. But ultimately, this is 100% a SaaS application that is also accessible by mobile app.

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171.447 - 174.11 Nathan Latka

That's great. And are parents the ones paying or child care providers?

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174.13 - 200.644 Alessandra Lozama

Neither. Isn't that a beautiful thing? It's 100%. Well, what we do is we work with employers to incorporate child care as a benefit solutions. So employers pay us a fee, a subscription fee, so that we can incorporate a search based on the requirements of their workforce and ensure that we have inventory ready for placement of those children.

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Chapter 5: What changes has TOOTRiS made in response to COVID-19?

201.248 - 205.038 Nathan Latka

Okay, so what does an average employer pay you for that service?

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205.479 - 210.512 Alessandra Lozama

$19.97 a month per participating employee.

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211.334 - 214.161 Nathan Latka

And how many employees participate on average per company?

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214.732 - 240.013 Alessandra Lozama

You know, the surveys typically come in at about 40% participation, and that's primarily because we're focused on the zero to five age group. However, due to the pandemic and based on this remote learning, I'll call it opportunities for children to stay home and go to school. What we found is that learning hubs is a solution that we could extend

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240.297 - 254.373 Alessandra Lozama

to parents through extended childcare for school-aged children. So I guess bridging the gap currently through COVID-19, we're not only supporting zero to five age groups, but also school-aged children.

255.434 - 261.381 Nathan Latka

So Alessandra, the question I was getting at is how many seats or employees is the average company paying you for?

261.441 - 264.264 Alessandra Lozama

Well, that would depend, right, on the size of the company.

Chapter 6: How does TOOTRiS ensure the quality of childcare providers?

264.284 - 266.727 Nathan Latka

So 100- Well, that's why I'm asking the average.

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267.027 - 272.876 Alessandra Lozama

All right. So on average, 60, 60 seats per organization.

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273.697 - 281.289 Nathan Latka

OK, so this is sort of breaching middle market, potentially pushing sort of enterprise. This isn't for a small company with 10 people that have two people that need child care.

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281.85 - 301.967 Alessandra Lozama

This is for any organization that has a need for it, to be honest, because there aren't any minimum required seats. And currently we are an early stage organization. So we've recently launched to market actually when the first ordered the lockdown in March, that's when we came out to market.

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301.987 - 316.069 Alessandra Lozama

So we have exponentially grown the scope of our services and the delivery of our services through the pandemic. And we're really scaling up in terms of the size organization that's adopting our solutions.

Chapter 7: What geographic areas does TOOTRiS currently serve?

316.353 - 321.089 Nathan Latka

So how many unique employers now pay you for your service, for one seat or 1,000?

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322.132 - 327.831 Alessandra Lozama

If I had to just throw a dart, I would say around 100 employees.

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328.52 - 337.995 Nathan Latka

Okay. Wait, why do you have to throw a dart? I remember when I first found my first SaaS company, I was looking at new customers every single day. I knew the number like the back of my hand. I knew their families, their personalities, everything.

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338.075 - 355.523 Alessandra Lozama

Yeah, well, it's a great problem to have because we're onboarding every day, all day long. And because we're also providing non-standard care and 24-hour care and weekend care, so we're adding subscriptions all day long.

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356.363 - 362.433 Nathan Latka

Okay, but you think about 100 employers right now, and on average, one employer signs up for about 60 seats.

Chapter 8: What future plans does TOOTRiS have for expansion?

362.633 - 368.142 Alessandra Lozama

Correct. That would be on average, right? So we have it all over the map. You ask for an average, that would be the average.

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368.983 - 379.38 Nathan Latka

So 100 companies times 60 seats on average would mean you feel you've got about 6,000 paid seats on your platform currently at $20 on average per month.

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379.741 - 380.061 Alessandra Lozama

Correct.

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380.762 - 382.926 Nathan Latka

Which would be about $120,000 a month in revenue.

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383.326 - 383.687 Alessandra Lozama

Correct.

384.308 - 388.416 Nathan Latka

So you've gone from nothing to $120,000 a month in revenue over the past 12 months?

388.496 - 402.722 Alessandra Lozama

Now, granted, this is all yes. And so these are subscriptions that will activate over time. That means that as soon as the parent is active in our platform, they will start paying for that subscription. They don't start paying for the subscription immediately.

402.702 - 417.516 Alessandra Lozama

So this is an on-demand platform, which is a beautiful type of solution for our employers because they can stretch like an accordion, right? So they can drop seats, they can add seats as those are warranted.

418.177 - 421.44 Nathan Latka

Yeah, the flexibility is important. So how many paid seats would you say you didn't have today?

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