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SaaS Interviews with CEOs, Startups, Founders

x0pa Breaks $3m Revenue, Grows 6x selling B2B Hiring tool

17 Jan 2021

Transcription

Chapter 1: What revenue target did x0pa set for this year?

0.115 - 6.242 Nina Suri

Our target was 3 million. We finished at 3 million and we were super excited. We are gunning for 9 million this year.

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8.545 - 28.571 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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29.392 - 35.663 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting.

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Chapter 2: How did x0pa achieve a $3 million revenue milestone?

36.164 - 40.211 Nathan Latka

Like Eric Wan, 18 months before he took Zoom public.

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40.572 - 44.719 Unknown

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

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44.851 - 64.762 Nathan Latka

Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Bean before Google acquired his company for $2.6 billion. We want to see a real pervasive data culture, and then the rest flows behind that. If you'd like to subscribe, go to getlatka.com.

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65.263 - 89.95 Nathan Latka

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. My guest today is Nina Suri.

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89.97 - 110.872 Nathan Latka

She's the founder and CEO of Zopa. This is her third venture. She's been an entrepreneur since 1997, started her first company with an investment of $1,000 to make it a multi-million dollar company across five continents. She pivoted to the digital platform in 2017 and is the recipient of over 23 awards, including Female Business Personality of the Year Entrepreneur in Asia.

110.932 - 123.93 Nathan Latka

Nina, you ready to take us to the top? absolutely nathan excited to get to get started you bet so you came on about a year ago zopa.com if you guys want to follow along it's an ai sass hiring platform nina walk us through what you guys are doing

125.682 - 145.973 Nina Suri

So we work with government, we work with enterprise, and we work with academia to help promote objective hiring using AI and ML. So making it objective, making it unbiased, and taking it to scale. So those are the main key features.

146.654 - 149.378 Nathan Latka

And what are customers paying you for this product today?

150.151 - 160.086 Nina Suri

So it's a SaaS platform. It's a subscription. Typically, the subscription can be anywhere from one year to five years, depending on the clients.

Chapter 3: What role does AI play in x0pa's hiring platform?

203.763 - 209.636 Nathan Latka

That's correct. And what is the customer that's paying you the most? How much did they pay you in 2020?

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211.46 - 218.094 Nina Suri

So we have a client which has the highest that we've got is half a million per client. So yeah.

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218.415 - 221.181 Nathan Latka

That's great. And how many resumes did they process last year?

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221.802 - 245.914 Nina Suri

It wasn't just related to the resumes, it was also about the workflow. It was a completely 100 percent automated workflow right from acquiring the application, taking them through automated testing, taking them through automated hybrid assessment, And bringing it to the point where the recruiters can then engage with the candidate. It was a logistics firm.

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246.374 - 251.681 Nina Suri

So it wasn't just to do with the resumes. It was also to do with the automation and the workflow.

251.701 - 259.291 Nathan Latka

Now, when you came on back about a year and a half ago, actually, this was 2019, you had about 32 customers. How many customers today?

260.132 - 274.545 Nina Suri

Yes. So we've got more than 300 customers now. Yes. And we had a great year. Yes. I love it.

274.625 - 278.068 Nathan Latka

So sorry, read me some of those numbers on that sheet.

279.369 - 304.231 Nina Suri

Sure, sure. So we've got three products. So one is the AI recruiter, which goes end-to-end hiring. We also have an assessment platform called Room. Room is a hybrid assessment, which does video interviewing, as well as multiple choice questions, essay type questions, and so on. again, very, very AI-enabled to do cognitive analysis, transcriptions, and so on.

Chapter 4: What pricing model does x0pa use for its SaaS product?

377.542 - 388.941 Nina Suri

trying to raise the capital. So we just decided to do a quick one on convertible notes. It's a kiss note. And we are now raising our series A. So hopefully the convertible note will be converted into shares as well.

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389.081 - 391.525 Nathan Latka

Oh, great. Now, how much are you targeting to raise right now?

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392.567 - 394.33 Nina Suri

Between $3 to $5 million. Okay.

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394.891 - 396.293 Nathan Latka

And what valuation are you targeting?

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397.075 - 398.537 Nina Suri

We're targeting $30 million.

398.585 - 408.055 Nathan Latka

Three, zero or one, three, three, zero targeting. And what are early conversations sound like? Do you think you'll be able to get essentially a 10 X multiple on your 3 million run rate valuation wise?

408.423 - 432.895 Nina Suri

Yes. I mean, look, I mean, the thing is that the numbers are very, very promising. We have a very solid pipeline. We are on track to do 9 million this year. So from that point of view, if the investors are smart, they're going to get the best return for their money. So we are already sitting on 1.2 million ARR for next year, 2021. What does that mean you're sitting on it?

433.347 - 448.223 Nina Suri

It means it's all the spillover, right, from the previous year. So the annual recurring revenue for 2021. So those are already in the bag. So you already got that happening. And 2022, we are already on a million ARR.

448.704 - 451.267 Nathan Latka

Is that because you're signing multi-year contracts?

Chapter 5: How many customers does x0pa have now compared to a year ago?

791.7 - 792.221 Nina Suri

Oh, I'm 53.

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792.722 - 795.124 Nathan Latka

Okay, last question. What's something you wish you knew when you were 20?

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796.806 - 797.887 Nina Suri

What was my wish at 20?

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798.007 - 799.248 Nathan Latka

Something you wish you knew when you were 20.

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801.631 - 812.068 Nina Suri

Gosh, oh. I can't think of anything, Nathan. You caught me there. But no, I always wanted to be an entrepreneur and my wish came true. And I'm so glad I did what I did.

812.688 - 829.767 Nathan Latka

Guys, there you have it. Zopa.com growing exponentially. It just passed a $3 million run rate up from just $500,000 run rate about a year and a half ago. They've done it all just pretty capital and resourceful. $2.5 million raised. So they do more revenue than the total amount they've raised. We love that trend. end. They went from 32 customers to 300.

829.788 - 842.668 Nathan Latka

They're now raising a $3 to $5 million round on a $30 million valuation. That's a 10x revenue multiple, but they have plenty of runway in the bank. Good through June. We'll see what happens across their three product lines as they scale their sales team. Anita, thank you for taking us to the top.

843.509 - 845.893 Nina Suri

Thank you, Nathan. Always a pleasure to talk to you.

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