How DriveX CEO Rauno Sigur grew DriveX to $1.6M revenue and 15 customers in 2024.

hey folks my guest today is ryono segur he's the ceo of drivex a technology partner for insurers mobility leasing and dealership companies drivex leverages computer vision offers a quick easy trustworthy way to remotely inspect a vehicle ronnu you ready to take it to the top oh yes all right so who are you selling directly to the insurers are they paying or is it somebody else paying that's a great question yes uh we sell directly to companies and we're also launching a product directly to consumers would like to get help in pre-inspecting cars when you say you sell to companies name a couple of them specifically we're really strong in our in our home region which is central and eastern europe and we work with the largest groups such as vienna insurance group and also ergo which is a part of munich red okay this makes sense so how do you price the tool what will ensure what will a big insurer and estonia estonia pay you uh well there are two factors to that mostly on a general level of course the volume of inspections in a given period let's say a month or a year and what kind of features the company wants because our competitive advantage is how much the company our client can tweak the solution themselves so we're looking at between two to seven euros uh per inspection i see so call it call like like six or seven u.s dollars per inspection um yes and what um i guess help me understand so how does the technology actually work i'm an insurer how do i remotely inspect a vehicle of someone i'm insuring that's a great question so in our region and also in the u.s fraud is a very big issue so that's why insurance companies are pre-inspecting a car that's really important to understand what damages are pretty accident and post accident now with our technology they just need to have the vehicle information such as number plates and bin code generate the drivex link in our system or through api and send the link to the consumer usually with an sms and it's all web-based technologies you don't need to download or install anything and depending on the workflow that the insurance company is using that defines the images and validations then the consumer the owner of the car just starts capturing photos and what is really interesting is that we analyze those images in real time and also provide feedback to the consumer in real time to ensure the image quality and also the trustworthiness of data okay got it so the main in way that you're ingesting data is photos taken from the car owner they send it to the insurer so the insurer can better underwrite the car owner exactly and they use those pre-inspection photos when there's a claim so they can go back in time and compare what was the original condition because in the u.s alone over seven billion dollars per year is paid out and fraudulent claims and they could use that technology too yeah but like i guess what i'm asking is there's no way you're not installing like software on these cars because i mean part of it is what if damage occurs it's non-visible you can't capture it in a photo and there's a claim on that how do you how do you capture that that's a brilliant question again thanks so our vision is to combine different technologies together so today we're in our in our roadmap where we're executing the visual inspection but we also want to incorporate audio diagnostics of the car and also connected car data we can access over the cloud of the manufacturer the car manufacturer to ask fault codes of the car let's say engine or or mileage and so forth so that brings a 360 view on the vehicle's condition and of course there are some damages that really cannot be seen or even through fault codes [Music] oh what's going on there youtube good to see you guys now imagine this you love watching these interviews with sas founders but imagine if we took all of the valuation data out from over 2807 interviews i've done manually saves you a lot of time well we've done this we've built it 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this link this link founderpath.com forward slash products forward slash evaluations or if you go to founderpath.com and hover over products click on get your valuation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform i hope to see you there all right let's jump back into the interview i don't know how many inspections did you total last month we're still in early stages so we're talking about about uh ten ten thousand twenty thousand inspections per month well i mean that's that's still a ton so i mean if you did twenty thousand inspections last month can we multiply times seven bucks per inspection to get your revenue uh yes you could and if we are also updating our pricing right now so the prices i told you was what we have what we're charging right now but obviously we have customers who were early adopters and then the price of course is a little bit the same uh difference i mean cheaper because what we're building is really deep tech and how we are better is that we have customers even before we have the technology so really i think i think it's great you pre-sold it but if you had to look at the average price that these insurers paid per inspection last month on the 20 000 inspections would that be more like four or five bucks something cheaper it's cheaper it's around a few bucks because we launched our product in stages and the first stage we the value we provided was image quality detection and visibility detection now we're adding the damage detection which increases the price of the inspection and the value that we provide okay but just to be clear earlier you said inspections cost six to seven euros per inspection that's obviously a little more expensive than historically what charges because you've matured your product historically you said each one's a couple bucks i mean can we take 20 000 inspections last month times three bucks you're doing something north of 60 000 usd per month well if you make the math then yes well i mean it's not just the math i want to make sure i'm calculating that accurately are you doing more than 60k a month currently not it's less okay when do you think you can break that we actually have the plan to break that uh in the end of this year so we're currently growing about 20 month on over month if we look at the subscriptions in the mrr where we're making okay okay so so you're close to like 30 000 a month right now on revenue with a path to get to 50 or 60 by the end of the year yes i see i see and if you're at around 30 000 a month today in revenue do you remember where you were exactly one year ago uh i would have to say that we were like four or five times less okay revenue like so like 7 000 a month or something something small amazing now how did you put this on a timeline for me when did you guys write the first line of code for this technology what year we started uh we registered the company in 2019 december but actually we had the first customer in place in april 2020 and that's where we really started to build the code and the product so first customer was 20 20 and how many customers are you serving now today we're serving uh 15 customers right now but we're already signing first letter of intents in the rental industry which will be the biggest market of our business yeah that makes a ton of sense of the 15 customers you know you do 20 000 inspections across all 15. does one of them make up the majority of those 20 000 inspections no it's actually quite this distributed so um yeah not a big wheel there what is the biggest...