B2Chat Revenue, Valuation & Funding (2024)

B2Chat generated $3.2M in revenue in 2024.

B2Chat reported monthly recurring revenue of approximately $120,000 as of late 2021, equivalent to roughly $1.4 million in annualized revenue. That figure represented a doubling from the prior year, when the company was generating approximately $60,000 per month, or about $720,000 annualized. Richter confirmed the year-over-year growth in the interview, stating the company was able to duplicate its monthly recurring revenue over the course of 2021.

B2Chat reported approximately 500 customers as of late 2021, up from roughly 300 customers a year earlier in 2020. Customers are primarily businesses in Latin America. The average monthly price per customer is approximately $200, covering a subscription that includes seats for multiple agents and access to messaging channels, with WhatsApp being the most commonly purchased channel. Additional charges apply for WhatsApp API message volume.

Richter noted that the average customer remains with the platform for approximately two years, which she described as the company's lifetime value proxy. She was unable to provide an exact expansion revenue percentage during the interview but confirmed that upsell occurs primarily through additional seat purchases as customers grow their agent teams.

B2Chat operates a subscription-based SaaS model with two revenue components: a per-seat, per-channel subscription fee and usage-based charges for WhatsApp API messages processed through the platform. The average revenue per customer is approximately $200 per month, and with 500 customers as of late 2021, the company was generating roughly $120,000 in monthly recurring revenue, or approximately $1.4 million annualized.

Monthly gross churn was 1.8 percent as of 2021, equating to approximately 5 to 6 customers lost per month on a base of 500. Richter confirmed this figure and described it as stable. The average customer lifetime is approximately 2 years, which serves as the company's LTV proxy. Richter was asked about net dollar retention and expansion revenue percentage but stated she did not have the exact expansion percentage available during the interview.

The company generates 700 inbound leads per month and was converting approximately 30 to 40 of those into new customers per month as of late 2021, implying a lead-to-customer conversion rate of roughly 4 to 6 percent. Each of the 7 account executives carries a quota of 12 new customers per month, which at $200 average monthly revenue translates to $2,400 in new monthly recurring revenue per rep per month, or approximately $30,000 in new ARR per account executive per year. Richter confirmed that quota attainment was below target at the time of the interview. Profitability was not discussed in the interview. Burn rate and runway were not discussed.

B2Chat had 35 employees as of late 2021, up from 7 at the time of the company's founding in 2017. Approximately 30 percent of the 35-person team, or roughly 10 to 11 people, are engineers. The sales team consisted of 7 account executives. Richter also referenced a group of approximately 14 to 15 people in another function, though the specific role was not clearly defined in the transcript. The company was targeting a headcount of 50 employees by February 2022.