In this podcast, co-founders of Numberz discuss their journey from inception to acquisition, including the backstory of how the company got its name, managing co-founder and team dynamics, and pivoting towards scale and acquisition. They also highlight the challenges of implementing their product, approaching acquisition, and the pressure and moral dilemmas of decision-making. The podcast concludes with a celebration of their recent milestone achievement and their future goal of going global.
Transitioning from selling to SMBs to selling to larger enterprises requires a different mindset, team composition, and skill sets.
Managing and getting the best out of people is crucial for the success of a company.
Constantly engaging with investors and potential investors is important for fundraising and exit success.
Success in exits is relative and can be defined by the positive impact on stakeholders, emphasizing the importance of transparency and morally sound decisions.
Deep dives
Starting with FitTech Pros
The founding team of a startup called FitTech Pros, acquired by ChargeB, shares their journey in the FitTech ecosystem. Aditya, the co-founder, shares his journey from being a tech professional to starting the business. Rajiv, a mechanical engineer, talks about his reluctant journey into entrepreneurship. They met at MBA school and realized their shared excitement for the financial software space.
The Genesis of Numbers
Aditya's work at Intuit India and Rajiv's experience in complex sales brought them together to identify a common problem faced by small businesses - cash flow management. They saw a gap in the financial services available and understood the importance of having real-time data to offer tailored financial solutions. Inspired by a US company called Fundbox, they saw an opportunity to use accounting data to provide financial services to small businesses, leading to the birth of Numbers.
Challenges and Pivoting
Initially focusing on selling software to SMBs, Numbers faced challenges in monetizing their product. The annual contract value was low compared to the high customer acquisition cost. They received interest from large corporates for accounts receivables solutions, which sparked their pivot. They studied the market, saw similar solutions in the US, and realized the global potential of their product. In 2018, they made the tough decision to pivot away from SMBs and focus on serving corporates with their cash flow and accounts receivables solutions.
Continued Growth and Acquisition
Numbers experienced rapid growth, partnering with banks and acquiring large corporate customers. They raised funding from Sequoia and other investors. In 2021, they were acquired by ChargeB. Their journey involved managing conflicts, building trust, and acknowledging emotions within the team. They emphasized the importance of taking tough calls and being open to pivoting when necessary.
Challenges in Transitioning from Selling to SMBs to Enterprise
The podcast episode discusses the challenges faced by a company when it transitions from selling to small and medium-sized businesses (SMBs) to selling to larger enterprises. The speaker emphasizes that this transition fundamentally changes the soul of the company, requiring a different mindset, team composition, and skill sets. The process of selling to enterprises becomes more complex, involving longer sales cycles, multiple stakeholders, and the need for credentials and experience. The podcast highlights the importance of underestimating the mindset shift and the need for substantial changes in sales, marketing, product architecture, and team dynamics.
The Importance of People in Running a Company
Another key point discussed in the podcast is the significance of people in running a company. The speaker shares that the most challenging aspect of running a company is managing and getting the best out of the people involved. While attrition rates may not be high, it is crucial for founders to ensure that they are able to align their team members and keep them motivated. The success of a company lies in the ability of the founders to create a positive work environment, understand individual strengths, and continuously reinvent themselves to tackle different challenges at each phase of the company's growth.
The Journey of Fundraising and Successful Exits
The podcast episode also touches upon the journey of fundraising and successful exits. The speaker advises founders to constantly engage with investors, potential investors, and other partners, and to never stop raising funds. Highlighting the importance of having multiple buyers and finding the best home for the product, the speaker shares that when it comes to exits, success is relative and can be defined in different ways. The true value of success lies in the positive impact it has on stakeholders, such as the team members who were able to buy houses after the acquisition. The importance of maintaining transparency and making morally sound decisions throughout the exit process is also emphasized.
A Fintech's journey from inception to acquisition!
In Episode 1 of Unotumbler Stories, we are in conversation with Aditya and Rajeev. In 2015, they both co-founded Numberz, a Fintech company focused on solving the Account Receivables problem for Enterprises. The company was successfully acquired by Chargebee in 2021 and has now been rebranded as Chargebee Receivables.
Hear, as the still in sync and still on point, co-founders discuss and breakdown their (6 years only!) journey from inception to acquisition! Hear the backstory about how the name Numberz came to be (don't miss the story of their earlier name), how they managed co-founder & team dynamics and how they pivoted from their early thesis towards scale & acquisition!
Know more about the founders and about Numberz here:
