ENACT SYSTEMS INC Revenue, Valuation & Funding (2024)

Enact Systems was operating at approximately $1 million in annualized revenue as of late 2021, according to Deep Chakraborty, who told Latka the company was "right now around a million dollar a year run rate in revenue." That figure represents growth of roughly 40 percent from 2020, when the company generated approximately $714,000 in revenue. The host noted the prior-year figure as being in the range of $600,000 to $700,000, consistent with the $714,000 figure in the extraction data.

Enact Systems had more than 100 enterprise customers across 23 countries as of late 2021, with over 1,000 users actively logging into the platform. Chakraborty estimated the potential US market at 50,000 or more platform users, noting the company had already crossed the first thousand.

The platform uses a user-per-month subscription model. Small and medium-sized business customers in the provider segment spend less than $10,000 per year to use the platform. On the consumer side, a homeowner using the end-customer app pays approximately $50 per year, while a large commercial customer such as a hospital might pay approximately $1,000 per year given the scale of their system.

The consumer app, launched on iOS in June 2021, had crossed 1,000 homes as of the third quarter of 2021. In Delhi, India, the platform had surpassed 500 users within the city, which Chakraborty cited as an example of dense geographic adoption driven by an active local ecosystem.

Enact operates a dual-sided subscription model serving both solar industry professionals and end customers. The business-to-business segment, which serves solar developers and installers, accounts for 80 percent of revenue and has been the company's primary revenue source since its 2015 launch. The consumer-facing app, which allows homeowners and facility owners to track energy savings and project performance, contributes 20 percent of revenue and was described as the faster-growing segment.

The platform processed more than $1.5 billion in solar and storage project value since September 2020 across 23 countries, and has facilitated the deployment of over 3 gigawatts of projects. Chakraborty noted that Enact is a software platform only and does not develop projects, sell hardware, or provide financing.

Profitability was not discussed in the interview. Gross margin, churn, LTV, CAC, burn rate, and runway were not disclosed. The company's largest named competitor has raised $321 million, a figure Chakraborty cited to contrast with Enact's capital-efficient approach; that figure is attributed to Chakraborty's characterization and is not a company-confirmed figure from the competitor. Enact's equity investors hold less than 40 percent of the company collectively, with founders and employees retaining above 60 percent. The US legal maximum annual ESOP grant per employee of 15 percent was cited by Chakraborty as the cap the company has sought to maximize each year.

Enact Systems employed 18 people full time as of late 2021, with seven based in California and 11 in India. Of the 18 employees, 16 are engineers, reflecting the company's product-focused orientation. Chakraborty noted the company does not have a large sales team, with only three people in selling roles including himself, one additional person in the US, and one in India.