Coastr Revenue, Valuation & Funding (2024)

Coastr reported approximately $240,000 in annualized revenue as of early 2022, equivalent to roughly $20,000 per month in monthly recurring revenue. Biswajit Kundu Roy told Latka that the company was "roughly about the 20" in MRR at the time of the interview, up from approximately £2,000 to £2,500 per month a year earlier, when the company had only four to five paying customers.

Coastr had 50 paying customers as of February 2022, all in the Tier 3 segment, defined as operators with fleets of 10 to 1,000 vehicles. The average Tier 3 customer fleet is 150 to 200 vehicles. The company had four customers at the start of 2021.

On the Tier 2 side, defined as operators with 1,000 or more vehicles and averaging 3,000 vehicles per fleet, three to four customers were in the process of coming operational as of the interview date. Roy said the company was targeting 10 to 12 Tier 2 customers by end of 2022. Tier 1 operators, which Roy described as multinationals such as Hertz with fleets of 100,000 or more vehicles, were not a current sales focus.

Standard Tier 3 pricing is £3 to £4 per vehicle per month on the base software plan. Tier 2 operators receive a 25 to 30 percent volume discount, paying £2 to £3 per vehicle per month. The platform also offered free trials of three to four months during the pandemic period starting in 2020. Average contract value for a Tier 3 customer is approximately £750 per month, and connected mobility add-ons such as telematics and keyless entry can triple that figure.

Coastr operates on a per-vehicle, per-month subscription model. Customers are billed based on the number of vehicles actively on their fleet at any given time, meaning the monthly charge fluctuates as operators add or remove vehicles. Roy explained that smaller operators typically defleet vehicles on a six to eighteen month cycle, which causes natural variation in monthly billing.

The platform has two primary revenue tiers: a software-only plan and an expanded plan that includes connected mobility features such as telematics and keyless entry. The upsell multiplier for connected mobility add-ons is 3x the base software price. Coastr does not charge commission on bookings; revenue is tied entirely to asset management. Roy stated that reaching £100,000 in MRR would represent breakeven for the business. Profitability below that threshold was not confirmed, and the company was still deploying its 2021 seed capital toward sales, customer success, and product development at the time of the interview. The typical vehicle defleet cycle for smaller operators is six to eighteen months.

Coastr had 30 full-time employees as of February 2022, split roughly evenly between two locations. The India team comprised 15 to 16 people and the UK team comprised approximately 15 people. Roy said 70 to 75 percent of the total headcount, or roughly 21 to 22 people, was focused on product and engineering, with the remaining 30 percent covering marketing, sales, and administration.