How Artivatic CEO Layak Singh grew Artivatic to $2.1M revenue and 10 customers in 2024.

hello everyone my guest today is ayax singh he is building a company called autovatic.ai it's an insurtech sas platform all right mike you ready to take us to the top hi thanks for joining tell us about the company when you launch hi nadan thank you for uh inviting me here so i launched antibiotic in mid of 2017 2017 kind of at the moment you launched in 2017 yes i did okay and tell us how you came up with the idea and what the company does so basically uh artifactic was started as an uh decisioning platform because that is where most of the enterprises face the challenges while making a decision with the different kind of a either is a customer decision is it profiling or is the kind of a great decisions or it is a kind of risk decisions so we created a platform which can solve these processes however the journey is quite interesting because before building antibiotic i was having online dating and social network and with that i created basically a health and life esl application so in that health and life visual application we were working with partnering with the businesses like clear drape jumaido dino kind of the focus was that the consumer that we have or our platform how we can basically combine their intelligence with these businesses so that we can provide them the better experience for uh cleaning or like they want to go for a travel they want to go for a coffee they want to go for eating together so that was the concept it was there while that didn't work out really well to me and then i thought okay why not we just utilize the same learning to provide decision intelligence to the enterprises so that was the idea behind to create this system so that it can help them to making a decision making sure so like sorry just to be really clear this is an ensure tech sas platform you are helping insurance companies automate their workflows their underwriting and create micro products prevent fraud things like that that's true so automatic is now is completely a full stack uh infrastructure platform for insurance it takes care of the entire life cycle of the insurance in life insurance health insurance general insurance as well i see okay and how do you build for this is it a sas business yes it is available as a sas platform we have 100 plus apis in this platform insurance company can just plug in play any of our apis for risk front writing for documents data decisioning fraud uh support sales anything around that okay and what are people what is the average what's the average customer pay per month for all these tools so it depends on the product wise basically for example underwriting is a core product for underwriting is a core product the customer pays about like a ten thousand dollar to twenty thousand dollar per month and damage but if they're using any other apis then for that they again depending on the transaction of the apis and they again we start paying like uh two thousand dollars or two thousand dollar or transaction for the apis but the core systems they start from 10 000 per month okay but when you look at so you have your smallest customers are two thousand a month your larger ones are fifteen twenty thousand dollars per month but if you sort of look at your full customer base and at would an average be caught five six thousand dollars a month something like that uh so normally like this underwriting products basically the ten thousand dollar i mentioned to you is the very lowest cost what happens basically charge per policy so say an example the insurance company issuing of 5000 policies per month or 10 000 policies per month or 50 000 50 000 policies per month so we charge them in a range of like a dollar five dollar ten per policy in that case is what happens if a insurance company processing like a 10 000 uh uh policies per month they're going to pay us 50 000 per month i understand i understand that but like that's why i'm asking an average is because i don't instead of asking how many policies every single customer puts to your platform i'm trying to get a sweet spot as of now we have seen an average customer who's paying to us is around 20 000 okay got it so so and how many how many policies per month would that be about 20 000 so uh 20 000 uh the policies should be around uh you can say four thousand okay so you're charging five dollars per policy not a dollar five two dollar ten yes so what's it sorry i thought you just told me that you charge a dollar five per policy that's room well no you just told me that a 5 000 person policy is going to be paying 20 000 a month that's four dollars per policy i mean it's the range it ranges between three to five okay sorry i thought you just told me that you charged per policy a dollar and five cents i said five dollar okay got it so when you say a dollar five to a dollar ten you mean 5 you mean 5 to 10 dollars oh i see my mistake okay i understand okay this is great so we understand sort of business now you are launched in 2017 like it's always a magical moment when you land your first customer tell us that story when'd you get your first customer uh an insurance it took a lot of time to get a first customer you know i could correct my first customer it took me 12 months to 2018. 2018 yes how big was the contract and then uh to be honest i got my first check uh to precise feb 2019 and what was the check size i think it was good enough for a ten thousand dollar kind of two sounds so that got you excited enough to say i'm gonna go build this full time uh exactly true and uh on the other side but the benefit of that happened to this way that in the next 12 months from feb to next 12 months i could close five clients very cool all at about 20 000 a month yes that's great so how many customers do you have today currently for last 12 months we have six live customers already in last 14 months okay so like can i take six customers times 20 times 20 000 per month yeah so you're doing i mean you're basically doing 12 120 000 per month uh that's true like basically like some clients are paying less as well but uh some clients are paying higher but average like you can say around uh roughly with combination of all fifty thousand two thousand dollar uh roughly but uh to call like a four uh thirty to forty thousand dollar per month you can say sorry sorry uh uh eighty to eighty two uh hundred k us dollar per month got i got it you as a company right now are doing about eighty thousand to a hundred thousand per month well congratulations on hitting a million dollar run rate that's a big milestone uh yeah that is a but it's still like uh the one challenge is still there right now because the payment cycle is very high so the realization is not that great even the book value is higher than so book value is about a million dollar but their license is less actually the license is less what do you mean by that so for example like if i want to create invoice today to somebody uh insurance company pays like 2-3 months later on [Music] so my invoice is getting created but the payment is not happening okay but they still have contractually signed for 20 000 a month for 12 months right yeah it all becomes we have signed like a minimum guarantee that okay you're going to pay us for these policies minimum 5000 policies 10 000 policies minimum after that any policy is increasing our revenue will also keep increased depending on the policies actually i see okay so have you built this company bootstrapped or did you raise capital uh i invested my own money in the beginning around 100k [Music] were you were you did that make you nervous no in last company i basically invested my own hub mill dollar as well i lost everything so how did you get so rich where did you get all this money to invest in your companies did you exit a company early on in your life or what i didn't work anywhere i started my first start of my college and i built that business in education sector i was generating a good amount of money about a million dollar per year [Music] yeah in profit i had a 52 profit margin on that wow so i saved money from there i did certain investments i bought certain house and all for the remaining money that i had i invested my another company uh i don't have a million dollar so i built that i hired a team but they didn't work out my second business didn't work out really well to me so i was left with some money from my last company i said okay let's give another chance to my life so i left 100k usd i started activating out of that wow and and so how old are you today uh in terms of how are you your age how old are you oh i'm 29 29 okay so so college would have been about six seven years ago uh college was around uh eight eight eight eight and a half years back i grew up basically around uh 21 21 21 years old kind of okay so over the past eight years you had a successful company in college with cash flow that helped you build your own personal wealth you invested a bunch of it in one of your last projects it didn't do well with the money left over you put it a hundred grand into automatic dot ai that's how you started out and then it is fund as well i raised about a million dollar kind of funding after that for this company yes for antibiotic okay and why did you make the decision to sell part...