Barcart Revenue (2023)

Barcart generated approximately $1.6 million in annualized revenue as of August 2021, up from roughly $600,000 in 2020, representing growth of approximately 150 percent year over year. On a monthly basis, the company was running at about $130,000 per month in combined revenue at the time of the interview.

Barcart had 155 brands on its platform as of August 2021, of which 114 were paying customers. The remainder joined during an early beta period before the company began charging. The first paying customer was acquired in June 2020.

Paying brands are charged $199 or $299 per month depending on their plan. At 114 paying customers and an average price point of approximately $199 to $200 per month, the SaaS subscription base generates roughly $30,000 per month in MRR. The average brand processes approximately $10,000 to $11,000 in GMV per month through the platform. Average order value is $100 to $110. Pal also noted a potential contract was pending that could push the total brand count above 200.

One customer had churned as of the interview date, which Pal described as not a good fit. Gross monthly churn was 1.6 percent on a revenue basis, with some downgrading also occurring within that figure.

Barcart operates a dual-revenue SaaS-enabled marketplace model. Brands pay a monthly SaaS fee of $199 or $299 depending on plan tier, and Barcart also collects a 10 percent take rate on all GMV processed through its buy button. Contracts are month-to-month for most customers, with the exception of some larger accounts that have longer-term agreements. Pal described the GMV-based revenue as usage-based rather than purely recurring, though he noted there is a recurrence to it given brands transact regularly.

In its most recent month, Barcart processed approximately 10,000 orders at an average order value of $100, generating roughly $1 million in GMV and approximately $100,000 in transaction revenue. Combined with approximately $30,000 in SaaS MRR, total monthly revenue was approximately $130,000. The average brand contributes $10,000 to $11,000 in monthly GMV, and Barcart's 10 percent take rate on that yields roughly $1,000 to $1,100 in transaction revenue per brand per month.

The company was profitable as of August 2021, though Pal said he did not have the net profit margin figure available and described the operating posture as reinvesting all earnings into new hires rather than accumulating profit. One plan tier also includes customer purchase data insights shared with brands to support digital marketing, including automated lookalike audience creation on Facebook. Profitability beyond breakeven was not quantified in the interview.

Barcart had 11 full-time team members as of August 2021, including 3 engineers. The remaining 8 staff cover operations and customer support. The company's first engineer was hired in May 2019, marking the formal transition from a retail operation to a technology company. Pal indicated the company needed to add salespeople, operations staff, and more engineers as it considered outside capital for the first time.