How Vervotech CEO Sanjay Ghare grew Vervotech to $2.9M revenue and 200 customers in 2023.

guys vervotech.com helps people understand with a unique identifier what hotels are on what street with what internet at what pricing they launched in 2018 today do over 240 000 a month in Revenue up from about 150 000 a month just a year ago and what's great about this company completely bootstrapped 30 ebitda margins is the target 25 profit sharing plan with employees Sanjay really built a great company and excited to share that he sold the company just last week to Constellation group where he's now excited to thrive under the Juniper subunit there we'll see what they do next hey folks my guest day is Sanjay Gary He's a CEO and MD of vervo tech he comes from an engineering background as an industry veteran and influencer he leads and drives the company's vision for organizing the world's accommodation Data before starting the company he worked as vice president of the SAS company at taviska which is a division of JP Morgan and Chase for over a decade company today again vervotech.com which offers a combination data mapping products Sanjay you ready to take us to the top yeah thank you for having me nothing you bet so I want to make sure my audience quickly understands the niche you're in you know when we book our conference venues for SAS open we always get these reports from the hotel venues saying if you do you know theater style seating here's what the room could look like if you do Circle Style seating here's what it looked like are you the kind of technology that powers that sort of planning and mapping uh no not really what what we do is any travel agency who is selling hotels online Nathan they try to Source the inventory from multiple Hotel suppliers and you know for in order to get the best rates for their customers what we do is we do standardization so that when travel agencies are showing hotels and rates on their website they are able to show unique listing at hotels and rooms and rates okay I'm not sure I'm following let's try and use a real example uh if there's a big travel agent that's listing four you know hotels in San Francisco uh that are available tonight um I guess uh I guess why not just go use Expedia and find the cheapest price for the hotel in San Francisco yeah beautiful so let's say you go to Expedia and trying to find the cheapest price for a specific hotel when Expedia is trying to get the cheapest price for that hotel Expedia will go to 100 of suppliers to really give and out of those hundred may be the same hotel is coming for from more than 50 sources and there is no standardization there is no way to uniquely identify the same hotel from different suppliers so we help by assigning a master ID to each hotel where Expedia can recognize okay this is the same Hotel coming from supplier one as same as Supply two same as Supply 3 with different different IDs why can't they just use the the hotel name and the and the address of the hotel as a unique identifier why do they need to pay for vervo Tech to do that absolutely so you know the the way Hotel names are you know uh return and the printed you will find the same Hotel lean on the same street 10 times in many cases uh so the address is different one property may be just at the same address uh same road there may be a one property which is a five star with the same name and next to it there is a one star property with the same name so that information will not be accurate because guests will book something assuming I'm booking five star and they will get a booking in one star so that there will be a lot of complications because there is no standardization and I usually stay at the Triton Hotel in San Francisco I can't remember walking down any major city street and going there's a Hilton that's a one star and then right next door there's another Hilton name the exact same that's a five star I've never seen that is this a common part problem this is a very you know very common problem so you know when you look at let's say you know a Hilton or Trident it may be a five-star property or it's a chain property so there may not be exact same name but there are properties you know uh where this happens very commonly because if you look at the global accommodation data right now there would be more than three million properties across the globe and the problem may not be there for the top one which may be let's say you know uh you know 20 or 30 000 properties but beyond that there is again a challenge when someone is telling you this is Hilton and they're giving address and they're giving location the other supplier may be giving the same name which you can match but the address may not exactly match location won't exactly match star rating may not match someone may call Wi-Fi someone else will say internet how do you really map all this to show the things in a unified way I'm not sure I believe this is a real problem but your numbers can prove me wrong so I guess help me understand what a customer's pay on average per month to use your technology today yeah so we were in the SAS and the average fee ranges between twelve thousand dollar annually to actually hundred thousand dollars per year it depends you know based on the usage okay that's a big range though would you say the average customer is paying you something like thirty thousand dollars a year today uh no so average right now would be around sixteen thousand dollar per year but the customers pay between twelve to hundred thousand okay so six sixteen thousand per year so something like twelve hundred dollars per month something like that correct 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 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 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 evaluations or if you go to founderpath.com and hover over products click on get your evaluation 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 what's the back story here what year did you launch the company in yeah we we started the company back in October 2018. okay and uh the reason behind that so there was you know this problem is very old problem uh you know there is there are companies who had been doing this and uh we just saw some inefficiencies and like who who was doing it before you you too so you know there are actually 100 plus companies who are doing you know this name the top three yeah but now you know so uh one of them is a company called demonics who has a product mapping.works the another one is named called Data binder then there is another company uh you know whose name is matching uh so there are you know a lot more other companies who are doing this globally okay so you launched in 2018 and and how did you remember how you got your first paying customer uh yeah I think we got after seven months uh because the the product you know we just had six suppliers you know the top one which we targeted at that point of time and I think seven months later we got our first customers on the product that's amazing do you remember what that first contractor value was uh yeah I you know so it is it is actually one of the a good paying customer uh it would be paying around I would say 30 000...