Zomentum Revenue, Valuation & Funding (2023)

Zomentum generated an estimated $4.7M in annual revenue in 2023.

Zomentum generated approximately $35,000 in monthly recurring revenue one year before the November 2022 interview, implying an annualized run rate of roughly $420,000 for 2021. By late 2022 monthly recurring revenue had reached approximately $250,000, representing 800 percent growth over the prior twelve months and an annualized run rate of roughly $3 million.

Zomentum had 4,000 partners in its network as of late 2022, with approximately 2,800 paying directly and the remainder paid for by SaaS companies that sponsor their partners onto the platform. The company also had 1,200 SaaS companies on the platform.

Pricing for partners started at $39, moved to $49.99, and has since increased, with new partners paying $100 to $200 per month. Grandfathered partners pay a lower blended average closer to $70 per month. The average revenue per user on the partner side is approximately $100 per month for the base sales tool, with additional charges for billing reconciliation, assessments, and integrations. On the SaaS company side, pricing starts as low as $30 per partner per month and scales up; the largest SaaS company customer pays approximately $100,000 per year. Demo-to-paid conversion runs between 55 and 60 percent, a figure Ghatge said she had not seen matched during her time at Accel.

Zomentum operates a two-sided network model, charging partners a per-seat monthly fee for access to its sales tooling and charging SaaS companies a per-partner fee for the ability to manage and grow their partner programs through the platform. Neither side can access the network for free.

As of late 2022, 60 percent of revenue comes from the partner side and 40 percent from SaaS companies, a split Ghatge noted is notable given the SaaS company motion is only a few quarters old. Gross monthly churn on the partner side is below 0.5 percent. Net dollar retention exceeds 100 percent on the partner side through seat expansion and add-ons, with greater expansion potential on the SaaS company side as those customers add partners over time. The platform fuels $800 million in technology GMV and reaches 1.5 million businesses in its network. Growth tactics as of 2022 are events-heavy and outbound-heavy on the SaaS company side, with the partner side driven more by inbound given strong product-market fit and high conversion rates. Profitability was not discussed in the interview.

Zomentum had approximately 75 full-time employees as of late 2022, with roughly 50 percent, or about 38 to 39 people, in engineering. The remaining headcount is divided across sales, customer success, support, and marketing.

The company runs a four-person quota-carrying sales team based in Bangalore. Annual quota for those representatives ranges from $100,000 to $400,000, set at roughly 10 times their annual income. Ghatge noted that early-stage reps were rewarded on effort rather than outcome before the company moved to a fully outcome-based model, and that all sales, including deals with US-based SaaS companies, are closed from India.