Corporate360 Revenue & Valuation (2018)

this is the top where I interview entrepreneurs to our number one our number two in their industry in terms of revenue or customer base you learn how much revenue they're making what their marketing funnel looks like and how many customers they have now it's $20,000 per Tov I haven't experienced his head bent on global domination you just bloke on a hundred thousand units bull mark and I'm your host Nathan Laska many of you who have met in person have seen my unbelievable dashboards that I built you know I'm an analytics like crazy person I love the data and I love presenting the data and beautiful dashboards that my team can use on their mobile devices their phone and TV throughout the office now the way I do this without having to hire a big development team is that Nathan waka calm for Josh analytic it's using a company called a clip folio and I'll tell you more later on the show how I use them Nathan Rocca calm for Dragic analytics consist of six sixty two coming up tomorrow morning you learn from Trevor wolf who breaks down holly gets mega brands to pay him $5,000 to test their advertising before going live during the Superbowl period of mourning relating my guest this morning is Chandran who for founder and CEO of corporate 360 a big data marketing software startup he boots drunken vote of the company in 2012 grew the business into multi-million dollars in revenue with international clients and 40 employees across five countries prior to through corporate 360 he worked for some of the leading technology companies like si P or called Dell and NetApp in three different countries he's a college dropout a national footballer he loves data science and traveling under his leadership corporate 360 is the first international startup from Kerala bringing IT jobs to rural towns and social empowerment Roone are you ready to take us to the top absolutely that is a fantastic introduction thank you good thank you my research team did their research so that's good all right tell us what corporate 360 does in how to generate revenue um we are a state intelligence data company for business-to-business interfaces recently revenue by selling our software to a data as a service subscription model where customers would access our platform to get sales leads okay so it's a SAS platform yes okay and what I imagine is kind of a variety of price points on average what are customers paying you per month it depends on on different options we don't have a standard list pricing where we go with this the type of data or the region the customer want to go after so the typical deal size would range anywhere from 20 K onwards okay and it's the 20 K kind of annual contract yes I forgot it do you only do annual contracts or any monthly we do have some monthly contracts as well but we try to recommend our customers to go with annual or multi-year contracts primarily because we are evangelizing data as a service model as opposed to buying marketing lists because the data accuracy becomes a main issue when it comes to marketing intelligence data although when you are in a data as a service contract what happens is there is a there is an ongoing data refresh process that comes along with the contract that Allah that allows customers to maintain their data with highest accuracy in CRM and marketing automation systems to our our data platform and okay so now that we can have some context there take us back to the beginning what you're do launch the company in 2013 okay 2013 and what yet today in terms of total teammates we have familia 70 employees and five countries now okay and did you do self and kind of bootstrap this review race capital we totally bootstrapped and be sort of listing profits back in the business to grow our business so walk us through that you know when you first launched this first off how old are you back in in 2013 um I was I was thirty years old okay and what is your first crack at entrepreneurship yes so what I in your bootstraps so where did you get the money to launch the company that's a good question so I did eight years in the corporate world working for was some of the world's largest companies such as ASAP or Oh NetApp Adele you know in different countries I was I was working in sales business development and marketing roles and also consulting across these companies so I had some kind of background that saved some money from those jobs that have had however when we started the company I was I started the company with very minimal capital investment I am I died it was probably less than less than $10,000 okay and what I must not go to so I opened the website I learned some machine learning big get up algorithms and and spent a lot of time in cells and learning and having some subcontractors and in India and Philippines and and and we started sitting at home and you know from our bedrooms and started working and and that's how we grew a business so the initial investment was primarily for sort of building the application and as well as you know launching the website and doing some basic out which email campaigns gada and walk isuzu kind of take us back to the beginning again 2013 was launched a less than thousand dollars invested average contract sighs they were kind of around 20k tell us the story of a customer that's currently using you and what they specifically use you for um that's a good question so we have a different use cases in which our customers uses our product they use it across sales inside sales they would use the product for analytics they also use the product for marketing campaigns and the fourth use cases for sales operations to give you an example of one of the customer this particular customer based our Japan water to run a competitive attack and they wanted to get a competitive intelligence of one of their competitor so we were able to put it over the data and we they started with the subscription of Japan the campaign went really well they gave us a reference to the team in China and Singapore and eventually it it went down to year of NN and US market and it became a global contract where nearly four thousand six executives are using a product from a an inside sales perspective in total just just in that contract in total the contract become a global contract with multiple use cases eventually or a period of one year so doesn't this ru it's just a simple question so how many how many customers are you currently serving 300 okay and and it sounds like you have seats so how many total seats across standard paying customers is that four thousand four thousand is for one customer we have we have more than more than 40,000 people seeds that are in sold and seats per user licenses sold only for inside sales use case when it comes to analytics or marketing it's based on data and not proceed okay when you're when you're selling though these contracts you mentioned your average contract is you know kind of around 20k and you're selling that to these 300 of these companies so far what specifically are they getting when they for that kind of contract that sucks I'm trying to get at 220 gives the average deal size it could be multiple use case let's say let's take an example that an inside sales team so they would get they could come in and select the specific region such as gyro or a share or it could be even a country depending on the size of the data volume we would we would bring it to the put it together and we'll put into a contract the inside system will get access to a platform to which they will access you know sales intelligence data competitive intelligence data and also an actionable phase leads okay god it's kind of Sales Lead so this is you know I struggle with this space because you know I've talks and I've had Henry on the show from discover or we've had full contact clear bit just a ton of people in this space and it seems like most of you guys are just you're buying access to other people's data to double-check your own and then have your own combination of your own web scrapers to get kind of new data are you using any other data sources besides those so that's what we're trying to create a differentiator we are not a part of any data syndicate we are not buying and selling data from each other they're not a product we need data reseller partners ship then order listen broker we source our own data through our own algorithms yeah but let me brain but if I break that down and call what it is those algorithms are web scrapers right or or not what are they they are web scrapers as well as we gather the data from unstructured data sources for example it could be even a bunch of resumes millions of databases of resumes carry right because it's all so different kind of algorithms including web mining it got it and how do you again so how do you differentiate yourself from say a full-contact it might be doing the exact same thing full-contact is a great company they focused on collecting a lot of data from syndicates and they also have social intelligence as well now if you look at there are hundreds of companies who has contacts data solutions social data gathering solutions but are the question that we need to ask is other really sales kids are they really actionable save leads so so so that's what we bring in our differentiator not burn around so like these are big company so I can came on discover we are doing over five million dollars a month in revenue right and so they also look at unstructured data it's not just social data the question I always ask these kinds of companies is like if everyone's looking at the same kind of data set how do you actually differentiate yourself um so so so the way in which we do this is we gather the data and we have predictive algorithms that look through the data sets to identify patterns and bias behavior and then we predict sales leads on top of it so it's not just accessing contacts and social data right so let's say if it's a ticked up Street Melbourne can you maybe give me a specific excellent like actually name names that give a specific example and maybe that will help us get a better idea instead of kind of using the general terms of the industry like tell us a specific example so like I'm signing I'm signed up and I'm a customer of you Who am I and and how am I going to get a better sales lead from you than I am going to be from somebody else let's say let's say you are a telecom vendor okay how long you want to step yeah you want to sell your enterprise solutions to to businesses okay it could be a cloud services data for the services it could be your unified networking services like you may name name one of those name and ideal customer eighty enterprises correct any industry so let's say any looks at BMW okay say you know any business i'ma tell just to summarize I'm a telecom trying to sell my services into BMW exactly so so what happens what is available to you today largely is that you will have companies like like some of the names that you indicated could give you I have 10,000 contacts of BMW I have all the subsidiary information of BMW I have all the social profile of all these BMW people right but when you get the data right what would you do with that the first question that you ask cell smart sales guy is that you know who is the key decision-maker from this and what is he talking about what are his pain points right whether is he really looking for is a really a safe lead out there right so what we do is that when we when you subscribe to our platform you get a 360-degree view point of you know seven modules right we even gather what is the IT infrastructure or telecom infrastructure that company is providing what is the product cycle what is the existing product is expiring right we look through all of those data points and then we create a predictive modeling where we indicate to you that a these are the ten contacts who could be ideal fit for your cloud services because these people indicated that read our information in these kind of bases that we have now that you've never tube these are the ten point of contacts would be buying your your cloud solutions or data center solutions because they've bought your competitors solutions ten years ago and they are running on older versions or older systems so this is a time that it would be idea for you to go in and pitch to them for a refresh what they would be considering a migration to the to the points we captured from all the data sources that we mined and we indicate that to you so you get some some handy information available to construct your sales pitches rather than dis accessing abundance contacts emails and in a company profile enables you later makes total sense for and thanks for the jumpin and kind of given that example so it's turning back to now kind of the economics that run your business so you said three hundred customers currently paying kind of you know 20 grand on average per year so it's sort of say they're doing about six million bucks per year right now in terms of air are we close yeah beyond that range you know some final I would say sorry what would you say really close to about five million range no dry with you got it so it's March 2017 you're right now about a five million dollar kind of air our rates of healthy business but what are you talking about kind of customer growth and customer turn specifically what is your gross customer turn on how do you manage it we you know we're not really aggressive in terms of relational marketing approach we we've maintained a very lean team and we have a fantastic process that we follow so it's all about taking care of our customer needs and giving them all the support they need so one of the things heating the produce we conduct in a cubillas every quarter with all of our clients and listen to them their problems and what they're trying to do with our data sets and what their objects are then we design our contracts or our features of the product based on client feedback a lot of investment and focus towards improving our products based on customer feedback we're in what is your before you tell me about all the ways your your driving turned down what is your current churn what gross customer turn monthly it's listen listen 10% okay all right so I mean it's still pretty let's say it's nine percent that's still pretty high that means on average you're losing 90 percent or more of your customer base every year and I was saying that we lose about nine percent 9.2 percent of our customers every year oh and that's an annual sorry that's annual okay my bad yeah got it so less than one percent monthly good customer churn yeah and most of these customers are premium startups let me see when you look at the trending of the customer that is dropping out for our contract they're primarily these enterprise starters that are coming up they come up with a pilot we come over the pilot contract for them and some of them those are the business so they don't race of Scone capital you know issues like that or they they could also consider multiple competitors you know but when I look at the analytics of it yes mostly startups are the ones who are dropping out from our contract but at the end of price level we have more than what a 95% rate all right it's great and in terms of acquiring customers on the page spend you arguing what are you what's your customer acquisition cost I don't have an exact figure of pivot on top of mine right now like I said it's a lean process you don't have any field sales out there so only account managers and we do everything how many accounts account managers of your seventy seven seven okay and and how much are you spending per month on any kind of paid acquisition we pull that's a good question basis is it meaningful the only challenge which we try paid acquisition is to LinkedIn ask but when we look at the other way of that obviously the impressions are good brand is being built but meaningful same things we're not that great so we kind of drop in how much did you spend on LinkedIn total probably over 200k loss here okay got it and so you're not like you're not doing any paid acquisition each month this year at all um I wouldn't I would perceive the budget is going to go down because we were getting a lot of inbound and existing contracts are growing so yeah you're right yeah I wouldn't be spending a lot of money on unpaid acquisition okay and then what do you assume like obviously you have an Account Manager on these on these some of these accounts which means you kind of have to understand lifetime value to understand what kind of incentive the account managers and the rest of your team with well you know this is back in the napkin calculation but what do you assume lifetime value is on these customers lifetime value if I look back the three years journey we had it could cleaned it away from from 45 K to a million bucks data it just depends alright good and you said a team of 70 where you guys based so we've got five offices globally we have Singapore headquarter in Singapore so we have a fairly large team there we've got a large BPO center in Philippines and India where most of the research jobs are happening the technology development is happening out of us and Singapore movie our state's office in Dublin Ireland as well when I was recently in New York meeting dozens and dozens of you that listen to the show I showed many me light mics that analytics dashboard I also showed you my website and a conversion dashboard for impression apprecia a paying customer along with many other dashboards I use in my business like my social media command center and a few others now all of these are built with one tool I just drag and drop them together you can see how I did that at Nathan waka calm forward-slash analytic that's maple akadama forward slash analytics Mel B dashboards guys are critical to my business you know I will crush them on my mobile phone right when I wake up in the morning I roll over I'm boom refresh while we'll rush them take off on a flight that I'm just addicted to data and numbers they drive my business so I think they probably drive your business too you can see my dashboards how I use them at Nathan like a column for rush analytics now if you go to the regular website that the school's clocksmith folio you only get 14 days free you go through my link you get 90 days free so I got a great deal for you guys it does expire so you got to go there now okay stop to tribe I have to tell you many people go Nathan you came out of nowhere your website's going so fast how'd you do it the answer is simple so I use Hostgator now if you guys know that I use Hostgator and the reason I do they have like about 4500 free templates I can use because I don't code they've got a great ecommerce plugin and guys i bug the heck out of their supported that 24/7 support which i love so what i've done is i've worked with them you guys wanna make great deals if you go to hostgator.com forward slash nathan you can sign up get your own domain for 30 percent off and a 45 day money back guarantee okay again I make great deals for you guys go to hostgator.com forward slash needs to grab that now got it awesome good stuff will ruin let's wrap up here with the famous five number one what's your favorite business book [Music] I am not reading now I don't get time to read anything now I was saying that I I can't think of anything on table not right now I'm not ready to get out I'm not reading anything right now is it can do it now okay number two is their CEO your file when you're studying the little musk and number three what's your favorite online tool like acuity scheduling I've use all Google Apps to do my thing number four how many hours of sleep to get every night probably probably four hours yeah you only get four hours of sleep every night how old are you three okay and with the situation married or single or have kids I'm gone okay so it's a single no kids yes okay so last question and take us back 13 years what do you wish your 20 year old self knew it was something both something that changes lives all right top tribe guys there you have a build something that changes lives with Varun he's the founder of corporate 360 again bringing predictive sales analytics and sales leads directly into your inbox and into your CRM again they launched several years ago totally bootstrapped now doing now doing that about 300 customers on average paying you know 20k ish on annual contracts doing about five million dollars an AR are super low gross churn and in fact they're retaining over ninety percent of our customers annually again building the software with your team of 70 across Singapore Philippines India the United States and Dublin room thank you for taking us to the topic endeavor thanks for having me if you enjoyed beroun today go back and listen to the founder of unbound yesterday Olly gardener I get him to reveal last year's revenue how many customers he had and how much money is raised it would mean the world to me if you've got any value from this episode if you would go leave a review on iTunes right now and then subscribe you know I hustle I have to give these episodes out every freaking day for you guys and struck me I love it I would do it with no listeners but boy oh boy it makes my day and make my team's day when we see great reviews and get your feedback thanks so much okay top tribe I love giving away the free money I feel like hope we're giving away cars I have something special for you today how many of you have heard our super sharp cats talk about success they've had with Facebook into the lab well all of you listening right now if you're listening you get $100 and free AdWords here's how you get it thanks again thanks for listening it took $300 from Google right when you sign up with my website post provider first better go sign up now to get your free money hostgator.com forward flash Nathan again that's hostgator.com forward flash Nathan [Music]