EduMESS Revenue, Valuation & Funding (2024)

edumess.com launched back in 2021 they're doing two thousand five hundred dollars per month in Revenue right now by helping 60 schools educate their students on how to do software development he's trained thousands of students and is now codifying that in his platform looking to raise 135 000 right now out of 2 million cap we'll see if it happens 10 people on the team hey folks my guest today is Chiki okoli he's got 12 plus years experience as a software developer and trained over 500 students in software development he's now building edumess.com as a training platform okay cheeky you ready to take us to the top the students or employers or somebody else okay so employers basically are paying for uh 80 minutes K-12 schools and they were expanding to accommodate um coaches and traditional institutions who train uh went into the business of educating others so basically edms is a software that helps educators of all sizes that manage all sides of school simplify their work processes and we implemented AI to help make this processes very seamless and so what is this what does the school pay on average per month to use your training program [Music] okay um it ranges from from 48 dollars to one thousand two hundred dollars and so our model is such that okay when we come to a school for basically educational school model um the students range from 200 uh 250 on average on average based on our numbers and so each each student's pay uh in Nigeria it's between 500 to 1500 and so when you aggregate that on average a school pays uh around 48 dollars to 1 200 monthly that's 40 the K-12 School pays 48 hours a month for one student or ten students no no no no no no no the whole school so we charge we charge um I think that's about one dollar per student and so if you have 250 students you're going to be paying uh 250 I see and how many how many schools pay for igms today okay so we launched August 2021 that's about for 16 months ago so we have 60 schools right now congrats six zero 60 yes60 and that's that's a total of around 16 000 student days wow so you're doing about sixteen thousand dollars a month in Revenue well of course um you experience a massive John rates and um when you when you uh do the maths so uh uh monthly recurring revenue is between two thousand to ten thousand dollar right now what do you mean between I mean it should be the exact number how much revenue did you do last month well so we aggregate our money timely and so this year I'd um be able to say this is what by by the end of that time so academic time is usually uh three in a year three to four in a year first second time and so a school gets to use months January February March and So within this period we collect our Revenue it got it but okay so just so last the past 30 days how much revenue have you done uh that's around two thousand dollar but that's not a good um the best way to evaluate our Revenue model since so um we're in second term academic term schools resumed um in December so in March ending will be going on so they have that window today but last year uh we did a um nearly 25 000 line ARR how much 25 000 25 000. yes that's great congratulations so 20 25 000 last year and what do you think you'll do this year when we hooked to we have an ambitious goal we go to 10x and so we are also reason to help us achieve that and so um we've got some implications so we hope to 10x our goal is to get us to a hundred thousand dollar ARR by the end of juneteen three so you're hoping that 10x so you did twenty five thousand dollars last year hoping to get 250 000 this year right that would be 10x yeah when you ramp that up that would be that would be uh 10x 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 the into the beautiful 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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 evaluation 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 and you said you're raising right now how much are you looking to raise so there isn't one that's five thousand dollars uh 135 000 yes yeah and what's the cap on the safe um two million dollar um Evolution cup why are you worth why are you worth two million dollars so we we put a couple of things uh in place and so we look at the market size we looked at the the scene that's playing we look at also um uh look at a couple of factors that we we we used on but and looked at the projection as well and So within the next um within the next five years we're looking to do over 20 million dollar in Revenue got it do you have a lead yet on the on the Note the save well I wouldn't say we uh he's a lead but we have um an investor who is also on board of advisors um who has um indicated interest to invest ten thousand dollars and so we also have our other board advisor who wants to put in 5K and so we are due diligent stage I'm hoping to conclude that that case that's great and you keep saying we how many folks are on the team today full time okay so I have two other co-founders and I have three engineers and so um that three engineer the CTO is one of them as well and so then we have two sales uh persons who helps to do the sales and marketing so chicken just make it easy for me total employees of the company says how many 10 10 okay great and then there's three co-founders okay got it and and what is your role are you business development marketing and sales or how do you split roles come to see you and see you and I also I also double up as the VP Series so you're doing all the selling so what's your plan how do you go get 60 more schools well we we've been trying a couple of sales channels and um right now we do our online Arts but we recently discovered something that worked we noticed that the school owners are aggregated on WhatsApp platforms and so we began to run ads we convinced them to begin to accept our Arts directly on their platform and so Nationwide we've been putting ads on their WhatsApp platform putting our ads directly in their face and and it's been giving us a massive ton of leads and can you name some of the WhatsApp groups that are the big groups that K-12 schools hang out in okay so there is uh they have an association called Maps National Association of private school Proprietors of Nigeria and so they have another one called absent so um yeah can you spell it first one is apson apps on WhatsApp that's a WhatsApp group in Nigeria that schools hang out in they created that group so it's a region it's like a body a governing body so there are two one is naps National Association n-a-p-p-s and so they created a WhatsApp group and so we approached them we said okay since you guys are here I mean in Nigeria alone we have over um in the fct we have over 2 000 of them you know in different WhatsApp subgroups and so uh we we we're targeting them um in Nigeria alone we have a total of seven seven thousand private schools just uh excluding the government on schools understood that sounds like an exciting growth plan um so you're looking at raising you've got 60 schools today you mentioned churn is really high if if the students are liking the platform why are the why are the schools churning okay so we we discovered something that we are changing our model to help us and so the students like the parents like a ball because we are depending we were depending on the school owners to pay us right so we it's B2B then since the school owner has the the appropriate students and so the school owner includes uh bid on the fee so we discovered that depending on the passion under the educator in question even though this solving a problem uh for them sometimes they collect less money and you know there is that temptation to go back and so we what we've done is we've um evolved our app in such a way that it gives the parents the parents updates from time to time so using what we call um uh communication book so the parents get sold because of that we notice um that as big that has started declining the challenge I started declining and so that was the issue where the the school owner has carried expenses and and oh suddenly realized that this hasn't been factored out and and suddenly so we we we we're changing that understood we're certainly rooting for you uh we hope it goes well in the meantime let's wrap up with the famous five number one what's your favorite book oh my favorite book Advanced certain strategy Byron Tracy so I think that book has had the most impact on my life number two is there a CEO you're following or studying in Nigeria [Music] um I wouldn't say that I have one right now I'm just studying my competitors and and number number three what's your favorite online tool for building edumess well HubSpot number four how many hours of sleep do you get every night bye and what's your what's your situation cheeky married single kids married two kids two kids and how old are you I'm 38 38 last question something you wish you knew when you were 20. I wish I knew how to build a foundable startup on time guys there you have at edumess.com launched back in 2021 they're doing two thousand five hundred dollars per month in Revenue right now by helping 60 schools educate their students on how to do software development he's trained thousands of students and is now codifying that in his platform looking to raise 135 000 right now out of 2 million cap we'll see if it happens 10 people on the team cheeky thanks for taking us to the top thanks you need some pleasure to be here one more thing before you go we have a brand new show every Thursday at 1pm Central it's called Shark Tank for SAS we call it deal or bust one founder comes on three hungry buyers they try and do a deal live and the founder shares back-end dashboards their expenses their revenue our poo CAC LTV you name it they share it and the buyers try and make a deal live it is fun to watch every Thursday 1 p.m Central additionally remember these recorded founder interviews go live we release them here on YouTube every day at 2PM Central to make sure you don't miss any of that make sure you click the Subscribe button below here on YouTube the big red button and then click the little bell notification to make sure you get notifications when we do go live I wouldn't want you to miss breaking news in the SAS World whether it's an acquisition a big fundraise a big sale a big profitability statement or something else I don't want you to miss it additionally if you want to take this conversation deeper and further we have by far the largest private slack Community for B2B SAS Founders you want to get in there we've probably talked about your tool if you're running a company or your firm if you're investing you can go in there and quickly search and see what people are saying sign up for that at nathanlacka.com forward slash slack in the meantime I'm hanging out with you here on YouTube I'll be in the comments for the next 30 minutes feel free to let me know what you thought about this episode and if you enjoyed it click the thumbs up we get a lot of haters that are mad at how aggressive I am on these shows but I do it so that we can all learn we have to counter those people we got to push them away click the thumbs up below to counter them and know that I appreciate your guys's support all right I'll be in the comments see ya