Oases Technovations Pvt. Ltd. Revenue, Valuation & Funding (2024)

guys engage.work is your full Suite HR tool especially if you're based in NDS surrender is growing quickly eight thousand dollars a month in Revenue a year ago now twenty thousand dollars a month in Revenue he's been very Capital efficient just a hundred thousand dollars in a pre-seat around raised where he sold 20 to two angels his team is 44 today 15 Engineers five quota carrying sales reps as they look to scale to be your Again full applicant tracking system payroll management the full life cycle of your employees he'll help you manage it hey folks my guest today is Surendra Varma he's a HR professional with 20 years of experience in the field he's worked extensively in HR policy design automation strategic HR business partnering and all sorts of roles he's now building mgauge dot work that's the URL it's a smart virtual HR management platform all right surrender you ready to take us to the top oh yes yes nothing thanks a shooey think of you like an applicant tracking system no it's not an application tracking system so it's a virtual smart uh manager virtual manager with basically does anything or everything post recruitment so it primarily takes care of things right from onboarding there will be separation piece so primarily something which an HR operation you know guide us right from say helping you to onboard right people getting the induction then managing leave attendance employee helped as query management you know payroll confirmation processes appraisal coordination and the suppression management is is something so you're more you're more like remote.com then it's your full stack start to finish got it got it I see okay give me the back story when did you launch the company what year so B so I've been I've been into entrepreneurship for for almost 10 started with the recruitment firm which was primarily a Services form engage we started in 2018 because uh you know my my first half of career has been working with a lot of carpets website growing organization and being a Founder as well as being HRI realized that there are common problems that every organization goes through uh specifically all the startups and msme right most of these companies either 70 of msmes do not have their own HR department right Mr Andrew I just want to let me just stay focused on your story for a second so you you have a service you have a surface consulting company you launch the software in 2018. fast forward to today uh what are what's the average customer paying you per month or per year to use the technology it's uh if I talk about uh you know INR it is 1.2 lakh per per annum and if we convert that into USD it's it's something around uh around twelve thirteen thousand dollars per annum and so if someone's paying you thirteen thousand dollars per year how many employees are they managing on your platform yeah so currently we are managing more than 12 000 employees across how many companies this stays across 130 customers wow okay um and and walk me through go back to 2018. did you also get your first paying customer in 2018 or did it take you a year or two so we got uh we launched our product in 2018 beginning and we got our first paying customer in middle of 2018. how did you get that customer tell me that story so it was it was basically a friend who was facing a challenge then you know the person the the friend didn't had so he was running an I.T company and he didn't tell any child department and he knew me because they were working together in the last organized Anita said I mean why don't you you know help us in terms of you know managing the entire HR department I really don't want to hire someone full time to manage because I really don't need someone to be full-time and that's how the whole story began yep that makes sense okay so you you onboard him and then um is your only pricing model charging per number of employees managed on the system or is there some other metric you charge on no it is it is per employee per month the number of employees that we manage on the platform okay so 12 000 employees across 113 customers that pay on average thirteen thousand dollars per year that would mean your monthly recurring Revenue today is about 135 000 per month is that about right uh so I'm saying uh you know 13 000 per annum okay yep so so 113 customers times thirteen thousand dollars per year would be 1.6 million annually divided by 12 would be 135 000 per month is that accurate um not really so we probably in terms of when I talk about our mrr is is around 20 000 USD per month 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 evaluation is there's many different ways to value a SAS business so the reason you're going to see three or four different valuations inside of your frowner 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 around 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 valuations 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 okay so which of the which of the metrics are wrong either your average ACV is wrong or your customer account is wrong no so well I I assume that uh you know Revenue use this expert lifted ROM so so uh yeah so if I go back and check it out so it's going to be uh it's not 13 000 it is going to be 1300 1400 I see yeah USD that makes sense so you have 113 customers paying something more like a hundred and fifty dollars per month or one thousand three hundred dollars per year right right okay that makes sense so if you're at twenty thousand dollars a month today in Revenue where were you exactly one year ago do you remember so we were we were almost uh 8 000 USD per month uh 12 months back that's great so where's the growth coming from from today you told us about your first customer how did you get how are you getting customers today what's your growth Channel so so our GPM is primarily you know focused in terms of uh talking to Founders right and uh you know we have uh an inbound so we do a lot of content marketing we publish a lot of knowledge articles around uh the HR challenges faced by startups Founders in msme and and that's how we primarily try to kind of uh you know give lot of uh insight about how HR needs to get managed uh so a lot of a lot of LinkedIn marketing a lot of a lot of email campaign we reached out to a lot of Founders uh what's your favorite LinkedIn tool for LinkedIn marketing so it's a sales Navigator primarily to reach out to the right people yeah that makes sense and how many folks are full-time today on your team so we are close to 44 people team 44 people okay wow and are you only servicing I know with remote.com they actually have legal entities in every country and then they're they're in the employee of record but that's a lot of work are you only working with companies that are hiring employees in India or can someone use you if they're hiring and paying employees in Canada and London and all over the world right so we have customer base so primarily it is focused on India but you do have couple of customers I would say three percent of our customers having an office in multiple law you know geographies or multiple countries and what's your model are you the eir the employee of the employer of record yeah so we it's like so if you understand peo which is professional Emperor organization market right so we we kind of give you the platform here and we also give you virtual HR manager who is going to kind of ensure that your entire HR gets managed by that particular dedicated virtual HR manager of course everything happens on the platform but surrender this is like a very it's a very direct and it's a very legal question when when when if I'm using you and I hire an employee are they signing an employee contract with engage as the employee on record or are they signing it with me and you're just helping me manage payroll so so had an extended I have they signed the employee agreement with the the customer directly okay so you're not an EO you're not an employer of record then you're not you're not okay understood understood and talk to me about how you've capitalized the business today are you bootstrapped or have you raised capital so we have angels on board right uh these are the people who are my exceos from my last organization uh so there are two angels that I have on board they've instantly been on boarded it's been it's been a year and from the time that they've joined in so they invested last year last year yes how much do they invest so they invested almost 100K okay and um most folks in our pre-seed round are selling you know 20 of the company is that kind of what you gave them yeah yeah absolutely okay interesting so you value the business at something like 500 000 a year ago was that the right move yeah I mean uh the the idea was not to get an investment but the idea was to get people they are not just an investor but they are their advisor on board so so these folks have a background of of you know creating a company and running it to taking it to you know almost 200 million dollar Revenue in 10 years and uh I have worked very closely with them where in they were business heads and I was part of HR team and I knew that this you know I need their experience to kind of help me scale up pregnancy so a lot of mistakes that I was doing probably with day coming on board you know you know if you see the surge in the in the in the monthly recurring revenue from eight thousand dollars to twenty thousand dollars today is is you know credit goes to these two yeah that makes sense and how is your team structured 44 full-time how many are engineers so my tech team is around 15 people yeah and where they are based Bangladesh and I somewhere else they are in Ahmedabad it is so the so the so the state is Gujarat uh which is near to Mumbai Mumbai okay near Mumbai great and do you have any quota carrying sales reps or no no you do have you have full time uh five sales representative how do you set their quota yeah so the quota is again you know bringing the monthly return Revenue uh so they'll have to ensure that uh you know there is there is a minimum commitment that every customer that they're bringing at least 12 months minimum commitment uh and and then rest when the when we onboard the customer after that it is primarily they'll service deliberating which has to ensure uh that they you know the lifetime value of a customer moves Beyond 12 months too so our average lifetime value for a customer is around two and a half three years minimum but you haven't been around for three years you're just multiplying your churn by arpu I mean that's it can that can be a we'll see if that turns out and pans out to be right but I guess my question I'm asking is what quota what actual dollar figure quota do you give your sales reps So currently uh you know what we do is we we ask them to kind of add up anywhere around you know uh seven to eight thousand uh uh dollar CEO which is spread across 12 months that's what primarily we give them the quota and you want them to do that once per month once per month yeah every month they'll bring this new yeah so you want your five quarter carrying wraps to close one new eight thousand dollar per year customer per month yeah okay and how many of your sales reps last month hit that quota so we had uh four people uh hitting that so last month we we kind of closed it almost uh uh you know twenty thousand uh uh you know po yeah so like three contracts at eight grand a pop something like twenty four thousand dollars in new new and new annualized business very cool well listen uh we're room for your surrender we're out of time though for today let's wrap up with the famous five number one what's the last Business book that you read the last Business book that you read I read the book which I am currently holding is multipliers yeah that's a good one number two is there a CEO you're following or studying I follow uh you know Steve Jobs number three what's your favorite online tool for building engage online tool that I like is this there's a product called high Bob sorry follow and there's something called Bambi Bambi HR in US number four how many hours of sleep do you get every night I am sure that I have at least seven hours sleep okay that's good and situation married single kids I married and I have two daughters two kids and how old are you the the Elder one is no no you how old are you I am 41 41 last question what's something you wish you knew when you were 20 years old I always wanted to be an entrepreneur to start a company faster huh yeah yeah I did it when I was 31. yeah guys engage.work is your full Suite HR tool especially if you're based in India Surendra is growing quickly eight thousand dollars a month in Revenue a year ago now twenty thousand dollars a month in Revenue he's been very Capital efficient just a hundred thousand dollars in a pre-seed round raised where he sold 20 to two angels his team is 44 today 15 Engineers five quota carrying sales reps as they look to scale to be your Again full applicant tracking system payroll management the full life cycle of your employees he'll help you manage it surrender thanks for taking us to the top thanks for having me here one more thing before you go we have a brand new show every Thursday at 1pm Central it's called Shark Tank for SAS we call it deal or bust one founder comes on three hungry buyers they try and do a deal live and the founder shares back-end dashboards their expenses their revenue our poo CAC LTV you name it they share it and the buyers try and make a deal live it is fun to watch every Thursday 1 p.m Central additionally remember these recorded founder interviews go live we release 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