How Workforce Next grew to $622.1K revenue and 50 customers in 2024.

hey folks my guest today is grab seth he is building a work from home platform to reduce opex and enhance productivity called workforce next dot i and he's an entrepreneur and people manager working in this area for the past 16 years trying to solve the problems at their root all right grab you're ready to take us to the top yeah hi it's good to have you here so tell me give me an example of a customer that's paying for workforce next so basically india is the country of where most of the people offering the services in order to run any business or in order to make things done so there are a lot of problems in this sector and there are a lot of hurdles to manage things uh online or using telephone so what we do we made a wfm platform to managing those business and specifically for the managing the labor or the workforce they are having so they can manage their all the workforce using a single platform and name is workforce next and what are they paying you on average per month to use the technology so uh that's it what's your range right so what are customers paying you per month to use the tool okay so that's that's a quite nominal charges on the that's the sas platform and we charge only for three to four dollar per user per month uh in order to use that platform and so how when a company signs up how many how many seats are they paying for usually so uh there are a number of companies and large enterprises are uh using uh this platform and i can i can have some names uh into that like uh lg is using our platform and there are some production houses my question my question is when a company signs up yeah what are they paying total per month to use the tool so i understand that's per user per per seat but i don't know so how many users do they usually sign up with so uh our target customers are specifically from 30 users they are having 30 work force in their team to 500 workforce in that game okay so it's fair to say 30 30 people at three dollars each is about 90 per month yeah okay and is that what most of your customers pay today on average ninety dollars per month uh yeah every average customer and the average size of company we are handling is uh people are having a 9200 uh employee in there of nation okay so a hundred employees at three dollars per user per month right is something it's like three hundred dollars per month 300 months i see okay when did you launch the company what year uh we started the product development into 2019 december 2019 and start selling in june 2020 and incorporated the company uh as a private limited entity in december 2020. okay and have you bootstrapped the business or did you decide to raise capital yeah uh that's a buddhist business i love that congratulations so that's quite sustainable and we are running that that into the lean mode uh so now we are trying to scale that up so how many customers how many customers do you have today right now we have approximate 50 companies yeah five zero customers okay and can we do 50 times 300 you're doing about 15 000 per month in revenue yeah 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 it 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 valuation 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 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 round 3.7 raised 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 valuations than what you can get now inside of founderpath and we're thrilled to bring it to you all right we're going to 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 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 that's great and where were you exactly a year ago if you're doing 15 per month now so in this in this financial year we are expecting to double it down so approximately we will have 100 customers in this financial yeah so grav this month you're doing 15 000 a month in revenue how much revenue do did you do last year in may uh last year that was uh uh we we are uh uh scaling that up i mean we are having uh the customer on the twice rate of every year i mean uh for example if we have drops right here i think this is getting too complex i'm just asking you what was your revenue in one month may of last year my ultimate at so one year ago yeah the the half of that you can say approximate 20 to 25 uh usd uh 20 2500 yeah 20 25 so you grew from 2 500 a month in revenue to 15 000 a month today yeah that's great congratulations on the growth yeah thanks and so how are you getting you have 50 customers how are you getting these customers so most of the customers are coming uh either from advertisement or we are some of the larger enterprises we are outreaching them how much do you spend on ads each month uh i didn't have my exact figure right now so sorry it's a range yeah yeah approximate in if if i can tell you in indian rupees will that work sure okay so approximate we have we are spending approximate one to two lakh rupees per month uh on reaching the those people two million rupees per month no uh not two million rupees uh that's a two lakh is sort of 0.2 million rupees 0.2 million 0.2 million rupees yeah i got it so 200 000 rupees you're spending like 2 000 or 3 thousand united states dollars per month on ads yeah yeah and where are you spending that money linkedin facebook google somewhere else the most most of the time uh the money is spending on either on google or linkedin and some some time on outreaching them people so we we have the team of people who outreach the enterprise and change them over the call over the email marketing so on that thing and rob how many folks are on your team today uh right now we have four people in our team uh for the sales zombie are you the how many how many total on the team total number of people we have right now 10 to 11 people okay how many engineers uh there are four units four and are you the only co-founder yeah i have a co-founder that's the cto of our company i mean the main technical guy so he take care of everything so did you guys just split equity 50 50 at the start uh yeah sort of but but till that as we didn't raise any kind of funding so we didn't display the uh equity as of now but uh as soon we will uh raise some fund or we will try to raise some funds then we will decide that how many equity he will have and how many equity i will have my question my question is when you started how did you split the equity then as soon we will start raising the fund so we will start right now grab if you sold the company how what percent of the money do you get if i sold the company how much equity how much equity do you currently own in the business uh right right now i have 100 of equity so okay so that's my question how did you motivate a technical co-founder to join you a startup very risky and to get no equity yeah so my thing is that we didn't split the equity as the company didn't have any worth initially right so yeah but we have the equal salary model so whatever we are earning we are splitting that in equal amount so you own 100 equity but you're splitting profits 50 50. yeah i see does your co-founder make any fixed salary or no he's just doing profit sharing with you he he's having fixed salary okay i see got it so he didn't take any equity because you gave him a fixed salary and then he also gets fifty percent of profits but but um we have plan i mean i have particular plan that as soon we'll start raising the fund i will uh offer him some equity as well i see i'm doing some good things that makes sense okay tell me more about the product what are you building next where do you see sort of workforce management going so thing is the field employees to manage the field employee and forecasting them and how many people we have to put in campus stuff so these kind of problem every day any specific industry are facing in india specifically so uh they are quite hard to manage these things or they are they are not even digitalize these processes as of now so we we are trying to digitalize that those things and are you profitable today uh yeah how much so uh uh in in time of profit our profit right well yeah it's a this is you're the interview no who else is profit i i i thought you are asking for if if they are having some profit or if that tool is giving some profit to them as well i mean uh if i thought you are asking for roi no grab i just i just want to know the answer to the question are you guys you're profitable how much yeah approximately we have 70 profit in our total income okay so of 15 000 top line uh you're taking about 10 000 in profit per month yeah so you're able to pay a team of 10 people using just 5 000 per month yes sort of what do you mean sort of uh see nothing sorry about that but yeah i i don't have exact figure in my mind right now that's fine a range is fine but you just told me 15 000 of monthly revenue and ten thousand of profits mean you only spend five thousand dollars a month and you told me there's a team of ten yeah so uh here in india uh the uh engineer cost is quite low nominal so we are managing into that thing i see i see okay that makes sense and then talk to me about churn are you seeing customers churn and if so what percent so we have quite low chart rate right now so uh since we started we have one or two customers only drop oh that's great congratulations sounds very sticky thanks all right guys what we're rooting for you man in the meantime though let's wrap up here with the famous five number one what's your favorite book i i i didn't read much of books so i cannot number we'll skip it number two is there a founder you're following or studying uh the founder i'm followed mainly the vijay shekhar sharma from paytm atm ceo yeah the paytm ceo vj number three what's your favorite online tool for building workforce uh my favorite online tool i i generally most of the time i use adobe xd to create some graphics or some more is it again what's the tool tool is xd adobe xd yeah it'll be xd all right number four how many hours of sleep do you get every night sorry i didn't get the question how much sleep hours yeah sleepers i generally take six uh six hours and what's your situation married single kids yeah i'm i'm married any kids uh yeah i have two kids and uh luckily when i started the company i got a new i got a kid at the time all right two kids and a startup and how old are you uh i'm 40. 40. last question grov what is something you wish you knew when you were 20 years old uh when i was 20 years right yes something you wish you knew yeah so maybe the maybe the business psychology or the people management the things i i know at that time i wish i know at that time so maybe i could do a lot of defense guys employee time tracking tool and workforce management tool workforce dot net next just broke fifteen thousand dollars a month in revenue up from two thousand five hundred just a year ago team of ten uh grav launched it back in 2019 totally bootstrapped today uh four engineers four sales reps as they look to scale they've only lost two customers currently serving 50 customers that pound average 300 bucks per month that's three three dollars per user per month or per seat all right thanks for taking us to the top yeah thanks thanks nothing thanks for the time one more thing before you go we have a brand new show every thursday at 1 pm 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 arpu cac ltv you name it they share it and the buyers try and make a deal live it is fun to watch every thursday 1pm central additionally remember these recorded founder interviews go live we release them here on youtube every day at 2 p.m central to make sure you don't miss any of that make 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