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Lessons from scaling Ramp | Sri Batchu (Ramp, Instacart, Opendoor)

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Jun 25, 2023

Guest

Sri Batchu

Sri Batchu, a growth leader at Ramp and former team member at Instacart and Opendoor, shares invaluable insights on scaling businesses. He discusses Ramp's surprising early growth tactics and the innovative strategies that propelled it to the forefront of the SaaS and fintech sectors. Sri emphasizes the importance of failing conclusively and utilizing a data-driven approach for metrics and measurement. He also advocates for employee autonomy over rigid hours and preferring payback periods over CAC for ROI assessment, revealing essential elements for cultivating rapid growth.

01:17:18

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ANECDOTE

Cap Table as Growth Strategy

Ramp's co-founders leveraged their existing network and reputation.
They got influential operators and advisors onto their cap table, many of whom became early customers.

insights

INSIGHT

Ramp's Secret Sauce

Ramp’s growth distribution isn't unique compared to other companies at its size and stage.
Their "secret sauce" is a data- and technology-driven approach in all areas.

question_answer

ANECDOTE

Growth Engineering for Sales

Ramp has a growth engineering team dedicated to supporting sales efficiency.
This includes using AI and third-party data to automate workflows.

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Unprecedented Growth Metrics of Ramp

03:52 • 2min

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Growth Strategies at Ramp

06:16 • 21min

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Growth Strategies and Metrics in Business

26:53 • 12min

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Exploring Holdouts and the Importance of Experimentation in Growth Teams

38:46 • 2min

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Metrics that Matter: Driving Growth in Business

41:08 • 16min

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Balancing Experimentation and Effective Growth Strategies

57:02 • 2min

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Strategic Talent Acquisition and Performance Management

59:19 • 13min

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Integration of Product and Marketing for Enhanced Collaboration

01:12:42 • 2min

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Expert Tips on Cost-Saving and Hiring Strategies

01:14:20 • 3min

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Stories of Your Life and Others

Ted Chiang

This collection includes eight short stories by Ted Chiang, each exploring unique and thought-provoking themes. Stories such as 'Tower of Babylon' and 'Story of Your Life' delve into concepts of time, space, and human perception, while 'Understand' and 'Division by Zero' examine the consequences of advanced knowledge and the breakdown of mathematical principles. The collection also includes 'Hell Is the Absence of God,' which probes the nature of belief and faith in a world where divine entities are real. Chiang's stories are known for their rigorous imagination, sharp intelligence, and ability to raise profound questions about the nature of reality and humanity.

Never Split the Difference

Negotiating As If Your Life Depended On It

Tahl Raz

Chris Voss

VOSS/RAZ

This book, written by former FBI hostage negotiator Chris Voss and co-author Tahl Raz, provides a masterclass in influencing others through negotiation. It distills the Voss method, revealing skills such as establishing rapport, creating trust with tactical empathy, and transforming conflict into collaboration. The book is filled with real-life examples from Voss's career, illustrating how these techniques can be applied in both professional and personal life to achieve goals and defuse potential crises.

Brought to you by Attio—The powerful, flexible CRM for fast-growing startups | Coda—Meet the evolution of docs | Eppo—Run reliable, impactful experiments

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Sri Batchu currently leads growth at Ramp, the fastest-growing SaaS business (and fintech business) in history. Previously, he led growth strategy and operations at Instacart and was one of the first 50 employees at Opendoor, where he built, scaled, and managed a variety of business teams, including analytics, sales, and pricing. During his time there, the company grew from $100M to $5B+ in revenue and to 1,500+ people. In this episode, we discuss:• The surprising tactics behind Ramp’s unprecedented early growth• A breakdown of Ramp’s current growth org and growth channels• Why you need to be “failing conclusively”• Ramp’s unique approach to metrics and measurement• Examples of Ramp’s “secret sauce”: a data- and technology-driven approach to everything• Why Sri prioritizes employee autonomy and flexibility over hours worked• Why team structure is a red herring for growth teams, and what Sri focuses on instead• How to set good North Star metrics, and why you should have more than one• Why Sri prefers payback periods over CAC for measuring investment ROI

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Find the full transcript at: https://www.lennysnewsletter.com/p/lessons-from-scaling-ramp-sri-batchu

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Where to find Sri Batchu:

• Twitter: https://twitter.com/sri_batchu

• LinkedIn: https://www.linkedin.com/in/sribatchu/

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• Twitter: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

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In this episode, we cover:

(00:00) Sri’s background

(04:07) Stats surrounding Ramp’s hypergrowth

(06:20) How Ramp set the stage for their remarkable growth

(09:19) New customers vs. customer expansion

(10:20) How Ramp has prioritized data-driven decisions

(12:12) Ramp’s growth engineering team, and how it supports the sales team

(13:41) The structure of the growth team at Ramp

(14:36) The “skunk works” team

(15:49) How Ramp maintains working at such high velocity

(19:11) How Ramp boosts morale and keeps employees engaged and excited

(21:45) How to promote hard work

(25:10) Optimizing efficiency in your growth engine

(27:28) Leveraging PR and fundraising

(29:20) Traditional media vs. newsletters and podcasts

(30:49) Building a repeatable and scalable growth process

(32:28) Examples of good North Star metrics

(37:09) Lower-level metrics

(40:30) When it makes sense to use the North Star framework

(42:03) Why Ramp doesn’t allow signups through personal emails, and how to reach out if you’re in that position

(43:11) Efficiency metrics and volume metrics

(46:49) Payback period vs. CAC for measuring ROI

(48:55) Defining payback period and contribution margin

(49:51) How to sequence growth tactics for B2B

(52:18) Experimentation and the importance of failing conclusively

(58:06) Ramp’s tool stack

(1:00:32) How to hire great people

(1:03:21) The importance of compensating employees properly

(1:06:28) The MECE framework

(1:09:21) Lightning round

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Referenced:

• How Ramp builds product, in Lenny’s Newsletter: https://www.lennysnewsletter.com/p/how-ramp-builds-product

• Eight Sleep: https://www.eightsleep.com/

• Keith Rabois on LinkedIn: https://www.linkedin.com/in/keith/

• Packy McCormick’s article on Ramp: https://www.notboring.co/p/ramps-double-unicorn-rounds-behind

• Gibson Biddle’s framework: https://gibsonbiddle.medium.com/9-the-gem-model-65c89face5de

• DoorDash’s business model: https://businessmodelanalyst.com/doordash-business-model/

• Airtable: https://www.airtable.com/

• Mutiny: https://www.mutinyhq.com/

• Gokul Rajaram on Twitter: https://twitter.com/gokulr

• Claire Hughes Johnson on Lenny’s Podcast: https://www.lennyspodcast.com/lessons-from-scaling-stripe/

• MECE principle: https://productfolio.com/mece-principal/

• Never Split the Difference: Negotiating as If Your Life Depended on It: https://www.amazon.com/Never-Split-Difference-Negotiating-Depended/dp/0062407805

• Stories of Your Life and Others: https://www.amazon.com/Stories-Your-Life-Others-Chiang/dp/1101972122/r

• Everything Everywhere All at Once on Hulu: https://www.hulu.com/movie/everything-everywhere-all-at-once-fa320000-8cf3-46fc-8c45-df5ec67b71f2

• Fellow kettles: https://fellowproducts.com/

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Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

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Lenny may be an investor in the companies discussed.

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.lennysnewsletter.com/subscribe

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