How FleetDrive 360 CEO Omprakash Karamchandani grew FleetDrive 360 to $2.5M revenue and 1.4K customers in 2024.

guys this is the great story of a Founder who built a tool for himself he ran his own trucking company in Atlanta had 20 trucks he made 15 000 top line per truck 5 000 net ended up selling that business for a 3X ebitda multiple because he got excited about the software the compliance software for trucking companies he now has over uh 700 trucking businesses signed up which equals 1400 drivers that pay on average 300 per year but that's just the recurring fee there's another 300 bucks per year they make per driver on one time fee so called around a million dollar run rate today he's hoping to break 3 million this year up from 750 000 done in 2022 hey folks my guest today is amkaram chandani he is the founder and CEO of a company called fleetdrive360.com he's a tech leader with a track record of over 25 years in the space now working on this comprehensive cloud-based solution to manage FMCSA and DOT compliance so explain that in a second I'll be ready to take us to the top sure yeah let's do it okay what is FMCSA and DOT compliance so every trucking company they have to follow certain guidelines FMCSA is a Federal Motor Carrier Administration and Dot is the Department of Transportation so if you have a trucking company or you are driving a commercial vehicle on the road you need to follow certain guidelines um you know put by FMCSA and what we have done is we have put together a Consolidated One-Stop shop platform for all the trucking companies to basically um fulfill the requirement laid out by the FMCSA and and do you charge based off number of trucks they're managing or something else a number of drivers oh interesting and so how many how many drivers are on the platform today so right now we have about 1400 and we actually launched this product last year in August and since then we have been consistently getting about 200 to 300 customers every every month okay new customers per month and is that new drivers or can one customer have 10 drivers One customer have multiple drivers so we have few customers have 10 20 15 drivers as well what does your largest customer have in terms of number of drivers so right now we have uh 17 drivers in one customer but we are actually talking to three customers One customer has 500 drivers uh One customer has two two thousand and another customer has about you know 1500 so uh those are kind of Enterprise customers for us and initially we were just focusing on the individual you know call owner operators which is you know one single person driving the truck and those kind of things so we are focusing on that now we are actually getting into Enterprise space which is more larger bigger carriers and how many paying customers today so we have 670 or about 700 paying customers wow okay so 700 paying customers making up 1400 drivers so average of two drivers per one customer so these are small mom mainly small mom and pop like types of driving operations last mile delivery I imagine no this is last mile plus the Long Haul which is the first Mile and um yeah this is over the road so you'll be surprised there are almost four million uh drivers uh on the road um that you know there's an attempt that we are targeting is that in a specific geography or is that worldwide it's just the U.S wow okay so where are you based what state uh so we are in Atlanta but we are actually um catered to the entire U.S United States um drivers okay got it so you're targeting four million you're at 1400 right now you've got 700 paying customers you launched last year in 2022 um take me back to your first customer how did you get that customer signed up and paying so um you know I I actually owned a trucking company myself so I come from the technology background I have done 25 years of truck uh technology implementation large you know um products and stuff like that and I started Trucking Company when I was doing the trucking company I found this that there's no solution to actually manage your compliance and um you know seven out of 10 trucking companies go out of business because of the compliance issues either they are not safe to operate or they have any compliance issues so every um when you say you run a trucking company like can I like how many trucks did you have on your balance sheet for your for your company 20 trucks at the top 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 interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for evaluation this year now the secret valuation is there's many different ways to value a SAS business so the reason you're going to see three or four different evaluations inside of your founder path dashboard this is all free by the way is because depending on who's doing the buying of your SAS company you're going to get a different valuation a VC is going to pay a different valuation private Equity Firm is different if you're going to do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when I hover over here here right so the teal is what a VC would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on YouTube all these datas are built from real-time valuation data points Founders share with us on the show so traction 1.2 million seed round 3.7 raise they sold 22 percent of their business go in here and filter by the event maybe you only want to see companies that have sold the whole business well here are a bunch that have been acquired the valuation and the multiple maybe you're going out right now and you're raising your seed round well go in here and look at all this recent seed deals that went down what they raised what valuation they raised at and what percent that they sold there's never been a larger data set of SAS valuation than what you can get now inside of founder path and we're thrilled to bring it to you all right we're gonna go back to the YouTube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at 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 so you would actually buy the truck and then you have to make sure they're compliant to actually make money doing deliveries and driving that is correct so you have to have a compliant drivers who actually do the drug and alcohol Consortium you also need to have the vehicle maintenance records you also need to do a lot of additional things on the safety um you know you get a DOT inspection on the road and if there's any non-compliance they will flag you and then your safety scores will you know take a hit so all those kind of things so when I was doing it I found that there's no one single solution available there's a lot of service provider what they were doing was they were doing manual like Excel you know OneDrive kind of stuff and I don't get visibility into my Trucking Company you know how I'm doing you know whether I'm safe I'm compliant I'm not complying and there was nobody could actually give me the services so I created my own small system because every company has to go through the audit first year within first year it's called new when did you write the first line of code for Fleet Drive 360 what year uh 2020 okay 2020. and then when did you bring on the first paying customer uh it was 2022. but you were the first customer right uh no um I was I sold my company but uh I had a few connections you know my friends um uh those started using and they really found it very extremely helpful so they actually brought more customers for me well wait real quick I imagine my listeners are curious about the trucking company so you sold your trucking company that had 20 trucks huh yeah what what what what would you make an average month on one truck uh it's about you know you you can make about uh 5 000. that's cash flow net or gross isn't it and what what about gross uh gross will be about uh twelve to fifteen thousand interesting and then and then the 10k of expenses those are things like licenses paying the driver all that kind of stuff that is correct yeah it depends you know if you have a um you know there's two kind of things one is a spot Market where you actually go on the load mode and get the loads other one is the you know contractor rates um you can make it the gross revenue anywhere from twelve thousand to twenty five thousand and when covet hit it was like even going up to 30 000 a month so these 20 trucks that you owned were all based in Atlanta uh yeah my office was in Atlanta but they were going all across the US so did you did you employ 20 drivers full-time on your...