How x0pa Reached $3M Run Rate and 300+ Customers with an AI Hiring Platform (Interview with CEO Nina Suri)

Introduction and Background

Nathan Latka

00:00Hello, everyone. My guest today is Nina Suri. She's the Founder and CEO of x0pa. This is her third venture. She's been an entrepreneur since 1997. Started her first company with an investment of $1,000 to make a multi million dollar company across five continents. She pivoted to the digital platform in 2017 and is the recipient of over 23 awards, including Female Business Personality of the Year Entrepreneur in Asia. Nina, you ready to take us to the top?

Nina Suri

00:25Absolutely, Nathan. Excited to get started.

What x0pa Does

Nathan Latka

00:28You bet. So you came on about a year ago, x0pa.com. If you guys want to follow along, it's an AI SaaS hiring platform. Nina, walk us through what you guys are doing.

Nina Suri

00:38So we work with government, we work with enterprise, and we work with academia to help promote objective hiring using AI and ML. So, you know, making it objective, making it unbiased, and taking it to scale. So so those those are the main key features.

Pricing and Contract Structure

Nathan Latka

00:58Mhmm. And what are customers paying you for this product today?

Nina Suri

01:03So we have... It's a SaaS platform. It's a subscription. Typically, the subscription can be anywhere from one year to five years, depend... Depending on the clients.

Nathan Latka

01:12Mhmm. And what are they paying on average per month?

Nina Suri

01:16So 50,000 is typically the starting point, and it all depends on

Nathan Latka

01:16Per year?

Nina Suri

01:16On the usage and the number of, users and CVs that they process. So anything from 50, and we've also got clients who paid 500,000.

Nathan Latka

01:32And just to be clear, that's $50,000 per year on average?

Nina Suri

01:35That's correct.

Nathan Latka

01:35About $4,100 per month.

01:38If someone pays you nearly $50,000 per year, about how many resumes are they processing?

Nina Suri

01:44So there's a limit of 10,000 resumes and as the volume gets higher, then they go to the next tier and so on.

Nathan Latka

01:53The 10,000 limit is with what price point? $50,000 a year?

Nina Suri

01:56That's correct.

Nathan Latka

01:57And 10,000 per what is the customer that's paying you the most? How much did they pay you in 2020?

Nina Suri

02:03So we have a client which has... The highest that we've got is 500,000 per client. So, yeah.

Nathan Latka

02:03That's great.

02:11And how many resumes did they process last year?

Nina Suri

02:14So it wasn't just related to the resumes, it was also about the workflow. It was a completely 100% automated workflow right from, acquiring the application, taking them through automated testing, taking them through automated, you know, hybrid assessment, and bringing it to the point where the recruiters can then engage with the candidate. It was a logistics firm. So it wasn't just to do with the resumes, it was also to do with the automation and the workflow.

Customer Count and Growth

Nathan Latka

02:44Now when you came on back, about a year and a half ago, actually, this was 2019, you were at about 32 customers. How many customers today?

Nina Suri

02:52Yes. So we've got more than 300 customers now.

Nathan Latka

02:58Wow.

Nina Suri

02:59Yes. And we had a great year.

Nathan Latka

03:04Well prepared. So

03:06I love it. So sorry. Read me read me some of those numbers on that sheet.

Product Stats and Platform Metrics

Nina Suri

03:11Sure. Sure. So we've got we've got we've got three three products. So one is the AI recruiter, which goes end to end hiring. We also have an assessment platform called Room. Room is a hybrid assessment, which does video interviewing as well as multiple choice questions, essay type questions, and so on. Again, very, very AI enabled to do cognitive, analysis, transcriptions, and so on. So, we had, for example, 396 assessments done last year, through one twenty eight

03:44clients, and they assessed more than 11,000 candidates, last year. So that's one of the stats. The AI recruiter, so 14,757 candidates were processed through our AI recruiter last year, over 7,760 jobs. So so pretty mind blowing COVID year, in spite of the issues with COVID.

2020 Revenue Run Rate and 2021 Target

Nathan Latka

04:10What what does that mean in terms of your run rate? What did you finish in terms of 2020 revenue run rate wise?

Nina Suri

04:16Yes. So we finished at 3,000,000. Our target was 3,000,000. We finished at 3,000,000 and we were super excited. We are gunning for 9,000,000 this year.

Nathan Latka

04:16Yeah,

04:25it's all This on is so impressive. I'm so excited for you. So that's basically, I mean, that is well over, you know, over 300% growth from the end of twenty nineteen to the beginning year of 2021.

Nina Suri

04:37That's right, Nathan. Yes.

Nathan Latka

04:37Did

04:38three you raise more capital to do this or you still have 1,500,000 raised?

Fundraising: Convertible Note and Series A

Nina Suri

04:42No, we raised a million dollars in convertible note. You know how COVID is and I was quite focused on revenue. I didn't wanna waste my time, trying to raise the capital, so we just decided to do a quick one on convertible notes. It's a KISS note, and we are now raising our series a. So hopefully, the convertible note will be converted into shares as well.

Nathan Latka

05:01Oh, great. Now how much are you targeting to raise right now?

Nina Suri

05:05Between 3 to 5,000,000 US dollars.

Nathan Latka

05:07Okay. And what valuation are you targeting?

Nina Suri

05:09We're targeting $30,000,003.00

Nathan Latka

05:09or $1.03?

Nina Suri

05:12$3.00. Targeting 3.

Nathan Latka

05:13And what are early conversations sound like? Do think you'll be able to get essentially a 10 x multiple on your 3,000,000 run rate valuation wise?

Nina Suri

05:21Yes. I mean, look, I mean, the thing is that the numbers are very, very promising. We we have a very solid pipeline. We are on track to do 9,000,000 this year. So from that point of view, if if if the investors are smart, they are gonna get they're gonna get the best return for their money. You know? So we are already sitting on a a 1,200,000 ARR for next year, 2021.

Nathan Latka

05:44What does that mean you're sitting on it?

Nina Suri

05:46It means it's it's all the spillover, right, from the previous year. So the the annual recurring revenue for 2021. So those are already in the bag. So, you already got that happening. And 2022, we are already on a million, ARR. So

Nathan Latka

05:46Is that because,

06:02you know, you're signing multiyear contracts?

Nina Suri

06:04That's correct. Yes.

Nathan Latka

06:05I So

Nina Suri

06:05most of the clients do at least a three year contract. It's a very sticky business.

Nathan Latka

06:09Yep. And so just to be clear, if I take a 3,000,000 run rate divided by twelve months, last month, you did about $250,000 of revenue. Correct?

Nina Suri

06:18That's correct.

Nathan Latka

06:18Yeah, and you think by the end of this year, that number will be in December 2021, you'll hit $750,000 in sales that month, which would be a $9,000,000 run rate.

Nina Suri

06:27That's correct.

Growing to 300+ Customers: Market Focus and the Room Product

Nathan Latka

06:28That's great, I love this. Okay, and now I wanna learn. I wanna learn how you did it. So how did you do it? How'd you go from 32 customers a year and a half ago to 300 today?

Nina Suri

06:36Yeah. I think a couple of things. One, we kept a very close... You know, we we were not sure whether we should go international and and balance our risks, but then we took a call of focus. So we said focus is going to drive growth. So we really, really focused on some key markets, Singapore being one of them, India, with the large local consumption. So, we signed up with the with these... With the private office of

07:02sheikh al Maktoum in UAE. So we had a very solid partner there as well. So our four... The four main focus areas were Singapore, India, UAE, and London. And we we just drove focus, and we said, let's just kind of get get the get the name out there. We had a very cool invention during COVID. We call it the COVID, accident, which is our product room, And it was a completely out of the box pivoting. You

07:30know, we wanted a assessment platform, and the the deal was won even before the product was created. So the the engineering team just worked on it. It's a fantastic product. It is highly AI cognitive. It can do offline at scale video interviews. You know? So one one one link go... Goes to many kind of candidates. So it's been it's been actually, piloted by quite a few colleges now to to to see whether they can use it

07:59for admissions. You know?

Nathan Latka

07:59Mhmm.

Nina Suri

07:59So that... Which which I think is damn cool because, admissions has always been such a subjective... You know, it's always been about grades and, you know, scores, and and and and I hope we can disrupt that.

Nathan Latka

07:59Mhmm.

Nina Suri

07:59We have very cool features like anti anti cheat. So it's got proctoring, feature there. So it's also being used by schools to do their assessments and their tests because of COVID, and social distancing.

Team Size and Sales Structure

Nathan Latka

08:28And what what about some other critical things? I mean, team is obviously critical in building this business. What's your team look like today? How many people?

Nina Suri

08:33We have 45 now, Nathan.

Nathan Latka

08:3345. How many engineers?

Nina Suri

08:33So we've got, 20 engineers, and we've got around 20, 18 odd salespeople and the

Nathan Latka

08:33They all quota?

Nina Suri

08:33The sales have all quota. Yes.

Nathan Latka

08:49Interesting. How many... I mean, can I ask what what their annual quota is?

Nina Suri

08:54Per salesperson or... I mean... Yeah. So we have we have three teams this year. Last year was just one sales team. This year, we've got the enterprise sales teams, which does, like, the really big business, multi... Multimillion dollar businesses. We've also now started an online business, which is just about, you know, getting the deal across the line and just signing up online. So this is something new. The single team used to do everything. So we've divided

09:21them into into a marketing slash online sales team, and we are in the process of building our outreach team. So we decided that we should have an outbound and an inbound team separate. So we have the money now, so we are in a bit bit better situation to make these decisions. Last year when I spoke to you, we were counting pennies. So Yeah. We didn't have that liberty. Yes.

Cash Runway and Series A Process

Nathan Latka

09:43How much cushion do you have in the bank? How much cash?

Nina Suri

09:46Till June. So I'm pretty good. You know? And if we raise our series a now, that should take us to 2022 very easily.

Nathan Latka

09:53And what does that mean? So through June, is it like 1,000,000 in the bank or 500,000 in the bank or what?

Nina Suri

09:58Yes. We've got 500,000 in the bank, but we've also, we've we've we've just exercised some tools, on debt funding. So we've got we've got, you know, we we are mobilizing that. And we are already in the due diligence with the with the VC for our series a. So if we get the lead investor there, there are quite a few who are very keen to follow the round.

Nathan Latka

10:17I love that. And last question on the sales reps. So what do your enterprise sales reps, what is their quota target annually?

Nina Suri

10:23Typically, a senior person does around 1,000,000 per year. Yeah.

Churn and Revenue Retention

Nathan Latka

10:28That's great. Very good. What about churn? What's your revenue churn look like?

Nina Suri

10:33Minimal. Touch wood. I think it's very early years. We are only in the second, third year of commercialization. Typically, the contracts are three years, two years, three years. So, when the renewals come up, we'll see how that goes. But the early renewals have already started to happen. We are already in the second phase of some of the clients. I'm... I wouldn't say it's 100%, but it's definitely, well above 90%, Nathan.

Famous Five

Nathan Latka

10:57Nina, let's wrap up

10:59with the famous five.

11:00Number one, what's your favorite business book?

Nina Suri

11:03From good to great.

Nathan Latka

11:04Number two, is there a CEO you're following or studying?

Nina Suri

11:08Oh, I think Satya is amazing, Satya Nadella.

Nathan Latka

11:11Number three is that what's your favorite online tool for building your business?

Nina Suri

11:15Oh gosh, so many. I mean, I would very easily say LinkedIn because, you know, we are really LinkedIn on onto that. Yes.

Nathan Latka

11:22Nina, now it's clever.

11:23Number four, how many hours of sleep do you get every night?

Nina Suri

11:26Oh, well above eight hours.

Nathan Latka

11:28Love that. And what's your situation? Married, single, kids?

Nina Suri

11:31Married, two boys, 27 and 23, married super young.

Nathan Latka

11:35Oh, that's great.

11:36They're my

Nina Suri

11:37glad I did that.

Nathan Latka

11:37They're my age. They're my age.

11:39I love that. And Nina, can I can I ask you how old you are?

Nina Suri

11:44Oh, I'm 53.

Nathan Latka

11:45Okay. Last question. What's something you wish you knew when you were 20?

Nina Suri

11:49What was my wish at 20?

Nathan Latka

11:50Something you wish you knew when you were 20.

Nina Suri

11:54Gosh. Oh, I can't think of anything, Nathan. You caught me there, but, no. I I always wanted to be an entrepreneur, and my wish came true, and I'm so glad I did what I did.

Nathan Latka

12:05Guys, there you have it, x0pa.com growing exponentially. They just passed a $3,000,000 run rate up from just $500,000 run rate about a year and a half ago. They've done it all just pretty capital and resourceful, 2,500,000 raise. So they do more revenue than the total amount they raised. We love that trend. They went from 32 customers to 300. They're now raising a 3 to $5,000,000 round on a $30,000,000 valuation. That's a 10x revenue multiple, but they

12:28have plenty of runway in the bank. Good through June. We'll see what happens across their three product lines as they scale their sales team. Nina, thank you for taking us to the top.

Nina Suri

12:36Thank you, Nathan. Always a pleasure to talk to you.

Nathan Latka

12:40One more thing before you go. We have a brand new show every Thursday at 1PM central. It's called Shark Tank for SaaS. 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

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