How Loginextsolutions CEO Shruti Agarwal grew Loginextsolutions to $25M revenue and 100 customers in 2024.

hello everyone my guest today is druvil sengavi he's played a pivotal role in revolutionizing logistics with the use of data science and machine learning he's been facilitated by forbes as one of the top 30 under 30 achievers in 2017. he's also recognized by as achiever of the year in 2017 by business world as he continues to develop his product logie next all right drewville are you ready to take us to the top absolutely thanks for having me nathan you bet tell us about the company what's loginx do and how do you make money what's your what's your revenue model uh well we are a sas company uh we are focusing on optimizing movements for enterprises so take it as uh similar to how google maps optimizes your movements on a daily basis when you go from your work to your home to your friend's place and so on we do a similar thing at scale for large enterprises we charge them on a monthly basis for uh the number of licensed users okay and and give me a customer example just so i understand this clearly is you're helping them actually move office locations uh no so when we say we had them move uh their uh you know their assets uh what we mean is that we help logistics and supply chain companies move their trucking their shipments and so on so if i just you know spend a couple of more minutes on what exactly we do uh we work with one of the largest retailers uh in the us and we also work with one of the largest transportation companies in the u.s now both these verticals they are pretty much the same from the logistics standpoint where goods are moving from their warehouse to their stores and from stores to their home right and then especially with the advent of e-commerce every customer is wanting faster deliveries right i mean amazon has changed the world where people want things in like four hours six hours same day next day um so having having said all this the market trend has been going more and more towards uh how do you really fulfill customers needs by pushing shipments faster and whatever software does it kind of aggregates multiple customers together based on the time preferences location data traffic information available truck capacity and so on and we put a machine learning there to it so that the routes become optimized and these enterprises fulfill their customers with shipments faster is this all the way from kind of the warehouse to the consumer or is it only kind of last mile uh it's a lot of uh different models that we have and we have different configurations for that um so when we say logistics optimization to most people it looks like one word but honestly it's a whole complex world behind the scenes um so that it could be last mile from uh from a warehouse it could be last mile from a station which is a small sorting hub uh it could be from store right so if you if you go to target.com when they ship they don't ship it from their warehouse they ship it from their nearest store um it could be uh you know grocery deliveries could be food deliveries when the food is coming from the nearest restaurants um so there's so many different models uh how the shipment arrives to you sometimes it's called drop shipping where the shipment comes straight from the merchant and doesn't go to any of the warehouses emotionally somebody who's selling on a marketplace an e-commerce marketplace so we support all these different models and we are the only platform which has end-to-end coverage to make sure every logistics model is covered and who is typically paying you who is your customer is it the actual product creator is the shipper who is it two kind of customer base one is shipped and one is carrier as we call it shippers are the ones who are either marketplace companies retailers uh food delivery companies and so on which are shipping goods they may not be owning any assets which we call it as drivers or trucks on the road and the carriers are the one who are like you know fedexes and ups of the world there are tons of other trucking companies uh in in the u.s across the world where they have their trucks they have dedicated drivers working for them and then their job is to keep on optimizing their productivity just like how uber's job is to is to make sure all drivers are busy uh and the busier the driver is the more money driver makes and the more money uber makes we help traditional offline transportation companies become similar to that okay and you mentioned you charge as kind of it's a sas model how do you how do you equate all this back to a sas model uh so well we have uh what we do is we charge per asset that means uh let's say if you have a thousand trucks uh across the u.s and you want all these drivers to be routed via a loginx platform you or you want all these drivers to have login next app on them uh then you could just pay us monthly on for all those thousand uh drivers and uh that would be our uh revenue model it's not the driver it's the truck it's the it's the asset right not the employee is the asset uh so of course there will always be one driver in one asset but the user uh cannot be a truck right so let's say if there's a mobile app it has to be installed into the driver's phone okay so then we charge for driver not for truck but ultimately you know you will have the same number of drivers as the number of trucks you may be owning i see and what and i'm sure this answer is going to be very complex so i'm hoping you can simplify it for us if i have a truck and i'm doing this kind of thing and i'll drive anywhere in the us i mean like what would i what's it what's it maybe an average of what i might pay you per month to help me be more efficient uh well we usually work with companies uh with at least a hundred trucks in their fleet so we do not really work with any small or mid-scale providers um and hence our minimum fees are like 50 dollars per month per asset as we call it and then these 100 uh trucks can be purchased as minimum usually the range of the customers we have is starting from 100 truck owners to 10 000 truck owners and when we say truck owners a lot of times they don't really own the truck because owning a truck is an expensive thing right sometimes a lot of times in fact all these larger companies they are aggregated models of trucking uh so they really work with other smaller and mid-scale companies uh like a five truck 10 truck kind of guys and they push our software onto them so that they can be optimized who are dedicated asset providers within the network of a large company so that's the kind of range that we wanted and what would you say i know you said you you know you go as little as 100 up to some with you know thousands get i'm going to force you here into an average just to make our conversation simpler which is the average customer that you have maybe say have a thousand trucks or is it more like 9 000. uh our current is 500 exactly uh so the majority of is between 100 and 500 and because there are very few companies across the world who would be uh having more than thousand trucks on their fleet so that's roughly so just to have our statistics right um out of uh the entire fleet of the u.s 90 of the fleets are less than 10 10 trucks uh so that just directly leaves us with the ten percent of the market and within the ten percent also it goes from ten to thousand which is the majority of it and then there are very few companies who are owning more than thousands it's just a very common the more trucks that you have dedicated and the more trucks you own the business complexity becomes uh more and more you know higher and higher primarily because it's an offline word has always been you know about calling drivers making sure they're doing their job well uh there's tons of compliance there's a tons of people and services aspect to it so this whole world has been more and more or less offline and that's when the whole you know driverless uh you know trucks kind of a new vision which is coming up because the more drivers that you have the more complexity that you have in the business and nobody wants that so juravil just to be clear at 50 bucks a truck and if your averages call it 500 trucks i mean your average customer is paying you caught 25 grand a month something like that but yeah absolutely yes and that that directly puts it into the enterprise space and why we prefer to be in the enterprise spaces because while you're focusing on smb with enterprise together in our space especially the whole selling model the product functionalities the configurations becomes vastly different an smb customer does not really care about complex workflows integrations and training change management deployment customization and whatnot uh versus an enterprise customer wants all of this and probably 10 more things beyond it they also want to talk to it's just more high touch sales and in our space we we have kind of you know become one of the one of the only companies focusing on enterprise it also gives us a more uh greenfield opportunity where we don't have to compete a lot with a lot of other smaller software providers who are offering sas like pr play sas softwares which can be purchased online when did you launch this company what year it's been i would say close to four years now we started back in the end of 2014. in 2015 is when we kind of you know raised our first out of investment that's what we kind of you know started having our team sales people marketing...