Rydoo revenue, CEO Sebastien Marchon, team size, customer count, churn, and more in 2022.

hello everyone my guest today is sebastian marchand he's an mba he earned his mba in france started his career in 2000 in the consulting industry and then moved to the corporate travel industry in 2005. uh ben was hired by sadeko in 2015 to create a new business line targeting the mobility services he created and launched his current company rydu in june 2018 to play in the travel and expense management space sebastian are you ready to take us to the top yes i am all right so what is raidu and what's the business model how do you make money yeah sure so raidu is a b2b application that let's say dramatically simplifies the way companies and employees manage their travel and expenses we actually offer two different modules one is a travel booking module so you can have access to uh you know thousands well millions of rates fairs hotels airlines car rental companies train and on top of accessing all these negotiated fares and rates we don't you don't have to pay for it i mean there is a central payment so for the travelers you don't have to pay for it you can just leave your hotel and the payment will be done by your company at the end of the month to which we will send an invoice so we really try to to eliminate all the pain points pain point for the travelers so this travel booking module and then we've got an expense management module and this is the same philosophy trying to uh to reduce the pain points so typically for the expense you just have to take a picture of your receipts when you leave a restaurant for example and then there will be a optical character recognition module that will uh you know pull all the information which is necessary for you to be a reimbursed it's gonna be sent automatically to your approver and that's it's for the for the travelers and sebastian i mean do you have us talking about your revenue model do you have a sas model here or is it a paper transaction so you pay for a subscription per active user per month so a company will pay that not the actual end user absolutely the company will pay for it yes so give me a general sense on average what's a company pay for this kind of software for a year or a month so you pay for a month and you pay per active user if the user does not use the service for a month you don't pay for this month it's a very very flexible model fully fully sus that's great yeah so the question is i'm trying to get a sense i'm sure you have a lot of cohorts but on average what's a company pay per month for this uh yes uh you would pay between uh six six dollars and ten user ten dollars per active user okay but yes sorry so go up to the company level because what i'm really asking is on average what's the team size of the organization signing up so what's the what's the average company pay per month uh it's it's a tricky questions because we have clients that includes only one one employee and we also serve companies with uh 450 000 employees totally totally understand that scarce yeah i completely understand that because it's a short episode we don't have time to go on every single customer cohort so what i try and do is get hone in on a sweet spot so it's a sweet spot for you a team at 10 or a team of 100 or 100 000 what's the sweet spot uh well again we serve any types of of companies small and medium enterprises at large companies initially we were targeting more companies between let's say 100 and 1000 employees but the more we move forward the more big big clients are looking out outdoor and are actually very interested by our service okay let me ask this differently just so we can get to an answer so we can move on because i want to capture the rest of your story if you take the total logos that are paying you and the total team members on those logos and you divide that gives you a number or is it 100 seats typically per account or a thousand or what's what's the number let's say it's going to be around 50 kilo 50. okay per year okay sorry you said 50 team members per year 50 they would pay 50 000 uh dollars per dollars got it yeah got it and and how do you know how many team members that is it's about a thousand uh well yes i think it's going to be around the 1 000 on average correct okay so a thousand a thousand person team would pay about 50 grand per year or about five dollars per year per user no it's going to be it's going to be 50 000 divided by one thousand so fifty fifty dollars per year per uh user got it okay fair enough that's really helpful thanks for that take me back to your backstory here so so you launched the company where were i think you said you launched in 2018 where was your head at that point were you quitting a corporate job or why start the company so i was actually hired by sodexo to uh in 2015 to uh create a new business uh to uh because sodexo was interested to uh expand into the mobility industry and uh so we you know we the first year we took some time in order to meet some uh some potential clients to understand what was the market rationals what were the end user pain points and after this year we set our strategy which consisted in creating an end-to-end solution in the travel and expense industry covering the full value proposition before the trip during the trip and after the trip and then we built this value proposition and to to do it we actually acquired two companies one was named expenditure specialized in expense management and the other was i albatros specialized in in travel booking we merged these two companies we integrated them into one a single entity and we launched in june this year a new entity a new name a new brand which was raidu okay just to be okay let me get something clear though are you a hired gun of sodeko or are you a actual founder with your own idea your own capital the majority ownership's taking the company founding raidu yeah i'm an employee of sudeksu and i helped sodexo uh uh initiate a new business in the travel and expense area okay so let me ask you as an entrepreneur there's always a decision when you have a big corporate partner like us right because you're doing all the hard work you're basically a founder but you it sounds like don't have a ton of equity in the company of some maybe to keep you incentivized but nowhere near what a founder would have if they launched the idea themselves outside of the umbrella corporation why'd you decide to launch inside the company versus quit launch it outside the company and then you know do a partnership model yeah it's it's a good question actually we really saw the benefits of uh being backed up by a very very large company so nexo is a you know well he is the leader in in in the quality of life service worldwide it's a huge company so we we found it extremely interesting to be backed up by such big group and at the same time to have a kind of uh yeah startup mindset and actually sodexo was um working on this concept of uh working with startups and they have actually set up a concept which is named the corp up which is the combination of a startup mentality the startup philosophy with within a a large corporation so we found it extremely interesting to combine these two aspects uh the you know a big group the big group foundation uh partnering with a yeah scale-up or startup mindset that's great and then again you merge them all in 2018 but you've been working on it since 2015 how many customers have you scaled to to date we have 6500 clients and we serve them in the 63 different countries so again very small companies as well as large groups like anchor deloitte etc okay just to be clear those are all that's 6500 paying organizations correct right that average that average about a thousand team members per year that they're paying for yes yes okay and you said you said earlier for a thousand people kind of per team on average they're paying about fifty thousand dollars per year earlier correct yes that's great yeah okay so i mean does the math work out fifty thousand bucks a year is about four grand a month times sixty five hundred customers that puts you at 27 million dollars a month in revenue uh we worked sorry uh can you repeat that please yeah does the math check out so 50 000 a year would be about 4 000 a month in revenue time per per customer times 6 500 customers that puts you at 27 million bucks a month in revenue something seems off to me so yeah let me let me repeat uh a a company will pay between the six six dollars and ten dollars per active use per active user per month yeah i understand that you shared that but you said the average team has about a thousand and the average price is about 50 grand per year yeah 50 000 per year yeah okay but that map doesn't work out right if i take 50 grand per year times 6 500 customers paying customers which is what you just said you had that puts you at a run rate of 325 million dollars a year yeah i i need to make the math sorry for that but uh yeah i i i need to make the mass out of that maybe i didn't catch a quick you know way correctly a question you you had you have 6500 paying customers today correct we have 6500 clients that's correct okay those are paying customers go right and they pay on average fifty thousand dollars per year yeah is it lower it's so it's okay if it's lower and you may and we've...