How Loginextsolutions CEO Shruti Agarwal grew 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 and so on before that we were just you know more bootstrapped how much raised to date then we have raised ten and a half million dollars so far okay all equity or was there debt in there as well all equity all equity that's great and then we just you know kind of uh shares share additional details on that we have an interesting split of financial and strategic investors and i've seen um lately i've been advising a lot of very young young entrepreneurs and i i see there's a big trend of a lot of corporations and strategic investors wanting to invest in innovation and in startups and that always becomes a question on you know should we really make uh you know raise money from a strategic or should we stick to financials and so on and i think we have raised from both so we have a good kind of balance there um so for all the listeners you know whoever is interested in talking more about about financial versus strategic money happy to have to spend more time that's great and i appreciate that and then um as you've scaled over the past four years again you raised 10.5 million bucks uh how many total customers have you scaled to uh we work with uh about 50 enterprise customers as of now and how many if you define enterprise customer as someone with more than a thousand trucks i bet you know the number i mean how many logos or companies are there in the you know in the world or the us with more than a thousand fleet trucks is is your max like a hundred comp you know customers or [Music] uh no so we uh we would be uh the total market size uh across the world is about 4000 companies and we already have made a list of all those four thousand guys um that's the whole uh and when we say whole world we really focus on asia pacific and uh north america okay that's the only two markets we are in uh we don't really aggressively sell in in europe or latam uh and china japan australia kind of markets it's just we are not that big to kind of have a spread so wide uh we do have a couple of customers in all these regions but we do not really have any sales force or focus on these regions what's your total team size today uh we are a total of 100 people okay and uh and majority of these are tech guys so we are very sales slam company um a roughly split would be about uh 60 tech 40 non-tech okay where's everyone where is everybody based uh the tech guys are majority based in mumbai in india and the sales guys are majority based in north america uh no so we have a we have a back-end development center in mumbai uh and our cto and my other co-founder uh she is from mumbai uh so she kind of uh leads the whole development workforce it helps us be more agile be uh more cost effective and be more flexible from the times timing standpoint yeah i totally understand that in northern north america though are you remote or all in one spot uh and in north america uh we are uh having a base in fremont california uh we have an office in chicago and new jersey uh but these are very small uh five ten people kind of offices uh usually when we when you walk into office you don't find anyone we are always other customers that's a good that's a good thing so so rounding out kind of the economics here in the math you mentioned earlier 50 bucks a truck i asked you for an average you said about 500 trucks so the you know you're very much in the enterprise space average customer paying 50 times 500 or 25 grand per month uh you then mentioned you got 50 customers if i multiply 50 customers times 25 grand a month it puts you at about 1.2 million bucks per month right now is that accurate that's correct yes okay that's great and what is growth looked like so a year ago in october called 2017 what were you doing um so we uh we were uh close to we were doing um roughly an mrr of about uh i would say half a million back then or 400k so that's what i like mr was uh really healthy growth growing about three three has most likely yeah i think we have been focusing on one thing for sure where we want to grow at least you know twice or thrice every year that's that's a strong focus everybody in the company knows about it and is busy working on that part churn's critical if you want to drive growth what's your revenue churn annually today well and that's why we choose uh enterprise space right the churn is annual churn is less than uh five percent and uh this is more of a gross channel if you see net churn is as positive because we drive more expansion than how far above 100 are you like 110 120 i i would say 108 right now net is eight percent positive that's great congrats yeah so if you have less than five percent if you have less than five percent gross revenue turn annually and you're expanding five those five points to make that up plus an additional eight right so you're expanding driving expansion of about 13 year-over-year for 108 net absolutely absolutely that's great and what when you are driving that expansion what pricing axes are you using to drive higher price points is it just getting them to add more trucks or do you upsell products or seats right as of now we are focusing purely by setting more licenses of the same business unit that we had sold to uh because typically when our customers go live we are more into a land and expand models where they start with uh you know a couple of cities a couple of warehouses or regions and then they would scale up into multiple cities multiple countries uh it's being an enterprise space again a lot of these logos are multinational organizations so they also can you know scale up to multiple countries so i think for the next couple of years we want to be super focused just on selling more licenses and selling by job and and expanding by geography and beyond that we would be having more upselling cross-selling kind of opportunities and talk to you about cac so what will you spend to acquire a new 25 000 a month customer uh we usually spend about uh uh about ten thousand dollars um that's that's our uh you know minimum spend we don't have a very formal calculations but ten thousand dollars is something that we do uh you know including uh the sales and marketing spend and uh the sales and traveling expenses are over and above that so we haven't really encountered that so i think i think if we you know put all together it would come about twenty thousand dollars of check twenty saves marketing how much twenty thousand salaries time travel everything twenty thousand yeah and this is a rough estimate um yeah this isn't the reason i'm asking is like that that's you know a one-month payback right if you're if you're spending 20 grand acquire 25 000 a month customer a one-month payback tells me that you actually haven't figured out a way to spend money to drive like additional growth because you if you have you would drive you'd drive your your payback period up to six months or 12 months or something like that right absolutely and then that's one of the best parts about our model where we are not at all capital intensive um and and we are almost right now reaching profitability uh so we are also and whereas the profitability not the net the gross profitability we are going to be a bit profitable very soon um so so yeah this whole model is pretty efficient from the capital standpoint that's great very good let's wrap up here with the famous five number one what's your favorite business book uh the hard things about the hard things number two is there a ceo you're following are studying right now uh jack ma who also happens to be our investors investors that's a clever way to say that all right number three what's your favorite online tool for building your business um wow um i remember that that name but there was a website um which has a lot of business tools available i i kind of forgot the name i go there i have i have it bookmarked but i i forgot the name of that obviously the nature of the question is you should know it immediately because you would you'd be using this tool every day so like what's a tool you use every day to grow the business um house park okay number four how many hours of sleep to get every night um eight hours it's pretty good especially because you're coming to me live i think from your hotel room in austin after you're after your conference right yes that i always make sure that i have to sleep that's great and what's your situation married single kiddos mattered no catch mary no kids and how old are you [Music] i am uh turning 30 in next six months ah very good that's exciting all right last question what do you wish your 20 year old self knew um i said well you said one foot by 20 years old do what do you wish your 20 year old self knew okay um well i i wish i knew the value of starting up early um we had an um we had an opportunity when i was in carnegie mellon and we had got selected in one of the incubators we didn't even know back in 2010 uh what a startup really means and we we gave up that opportunity because we wanted to work for a corporate bank in uh in new york um so the group of friends we went to new york we did an internship in in uh you know in barclays and ibm and austin young and we gave up that opportunity and i wish i knew the value of that the opportunity cost of that that lost opportunity guys jump into a startup faster login x launched in 2014 today doing 1.2 million bucks per month that's up from 400 grand per month just about a year ago they do this by serving 15 companies that manage fleets of trucks on average these fleets are about 500 trucks they charge 50 bucks per truck or per asset so that's about 25 grand per customer per month they've raised 10.5 million bucks to scale to where they're at today economics are healthy less than five percent gross churn annually 108 net revenue expansion annually they've got a team of about 100 people based between mumbai california and other remote locations they look to keep scaling 2 or 3x year over year javil thanks for taking us to the top thank you so much nitin thanks for having me goodbye