How HBox CEO Banu Dhanakoti grew HBox to $6.4M revenue and 100 customers in 2024.

hey guys recording this here on what is it Friday the 19th maybe you're seeing this on Monday at the latest but I want to let you know we are almost sold out for founder comp sorry founder 500 in Austin Texas here in about a week uh it's gonna be an amazing event 500 B2B SAS Founders I'm looking at the attendee list there's almost um there's almost 60 founders with more than six seven million bucks in ARR it's an incredible group of group there's over uh there's over a hundred over 150 with more than a million uh more than a million Revenue it's an incredible group you don't want to miss it uh grab your hotel grab your flight grab a ticket right now I'll put the link in the bio um in the description here on YouTube and I think there's only about three tickets left okay about three tickets left I'd love to see you guys there don't be bashful grab your ticket now hey folks my guest today is brand new Prasad he's a Serial entrepreneur currently the founder and CEO of hbox a virtual First Care platform company that helps customers in eight U.S states and he's growing quickly they've participated aggressively in the Indian investment ecosystem both as a venture partner in O'Reilly Ventures and as an angel investor Bono you ready to take us to the top yeah sure so it's basically my background is um Bonnie let me let me let me let me lead here okay let me set you up for success with my audience so guys first off if you want to follow along the link is hbox.ai yeah and so Bonnie would start with the start with the platform right so when you say building virtual First Care platform what does that mean so we are uh we are an end-to-end uh uh platform and services company and we serve uh clinics across eight states in U.S where we not only provide the hardware and the software technology but we also provide the end-to-end care delivery services like clinical uh care coaches with billing infrastructure and so on so the basically what we do is we work with clinics mostly specialty clinics like pulmonologist Cardiology what do you mean sorry but you keep using the word Kleenex I don't understand so they are outpatient Healthcare Providers like um if you these are individual clean uh practices or group of Physicians come together and create a legal entity that work with the hospital systems so basically those are healthcare clinics which specializes in three specialty area which is pulmonology cardio biology and Nephrology so we work with so we work with these Physicians to create a virtual clinic inside their clinic so what does that really mean is we provide the required hardware and software for their patients and work with them to help them to Monitor and manage their chronic conditions honey understood so you're selling the positions that work with Hospital chains you're selling directly to those clinics when you say hardware and software plus Services if you look at your total revenue from last year what percent would you say was hardware sales so we don't um the hardware is not sold as Hardware it's an integrated subscription model so we lease those Hardware to the patient so our revenue is all uh subscription Revenue so we don't sell the hardware as a subgrade So when you say the hardware is leased what does the hardware do you have by the way can we see the hardware do you have it there near your desk can you hold it up uh no unfortunately I don't have it right now but is essentially consists of a 10 inch display tablet which we call as health part that comes with different medical devices that gets attached to that tablet depending upon the chronic condition that we are managing for the patient so for in case of pulmonologists it can be as simple as a pulse oximeter plus a spirometer in case of cardiologists it would be a blood pressure monitor and in case of uh it can be a weighing scale it can be a blood sugar Monitor and depending upon the chronic condition the common element is I want to say focused on on the hardware for a second okay so the hbox smart kit I see on your website which it looks like there's an iPad thing there's a little thermometer gauge then there's a little finger thing to get your your blood pressure I think in a couple other tools what does that hbox market that I'm looking on your website what does that cost you to purchase from the manufacturers so we for us landed it comes to close to 200 dollars landed in so we're going to do these are customized even though they are standardized products it's uh branded hitchbox and we work with certain you know so volume commitment and so on so the total cost for us is uh around 200 landed and what volume would you have to commit to with the manufacturer to get your price down at 200 landed so anything between it depends on the iPad volume such as medical devices so it's somewhere around three thousand uh units three thousand units okay time for manufacturing 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 and and how is it 200 landed I mean there's an iPad I see in this package I know iPads just by themselves are five six seven hundred bucks yeah so these are uh it looks like an iPad those are Android tablets which are customized for hbox so they come with uh our built-in software so they are not an iOS platform they are an Android okay same same question though an Android tablet is going to cost just by itself more than 200 bucks correct that is where the that's where I meant that we tap into the um my previous Venture was in the same space so we work with the contract manufacturers in China to bring down the cost so you can get if you purchase three just talk about Android tablets for a second if you purchase 3 000 units and commit 300 years you can get your cost for those Android tablets under you know 150 a unit okay that's right oh wow okay got it okay so your Hardware's 200 landed um that makes a lot of sense and then what do you lease you mentioned you lease it back to your customers the Physicians and clients what's the what's the monthly lease payment so we don't uh let me give you a walk you through our business model right we don't lease Hardware separately what we do is we charge per patient on a per month basis anyway between depending on the volume of the clinic anywhere between 60 to 79 dollars per patient per month okay and and what does that per patient does that number of patients in the system is that just the patients that visited that month no those are the patients that whom we have delivered these uh uh service with which includes the hardware okay my question is a physician or clinic over a five-year period might see a thousand patients correct but last month maybe they only saw 10 patients are you billing against the 10 patients or the Thousand patients no 10 patients but all those 10 patients would have been given this Hardware that they can carry to the patient's home and this is a subscription that patient uh The Physician prescribes to the uh patient to for a 12 months period so we so if I'm a physician...