HR Tech Exec Invested $200k into his own HR SaaS, Raising $200k on $3m Valuation Now
Sep 26, 2023
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Ex Corporate HR Exec builds nest egg to launch HR tech SaaS. Discusses using HR SaaS platforms for employee engagement and people analytics. Highlights customer size and first contract. Talks about HR SaaS company's current funding round and personal financial sacrifices.
UmWelc.ai is an AI-powered HR tech SaaS platform that helps companies enhance employee engagement and retention through behavioral science and data insights.
Despite generating only $10,000 in monthly recurring revenue, UmWelc.ai has achieved profitability by focusing on building the technology and reinvesting customer revenue, allowing them to bootstrap for several years without external capital.
Deep dives
UmWelc.ai: Transforming HR with AI-driven Employee Engagement
UmWelc.ai is an AI-powered platform that helps HR managers enhance employee engagement and retention. The platform, launched in 2019 by Vishal Chopra, enables companies to proactively understand the needs and experiences of their employees throughout their journey. Using behavioral science, UmWelc.ai collects insights on employee behaviors and utilizes its own community to identify gaps and areas for improvement. Among their customers is Puma, which utilizes UmWelc.ai's technology to interact with employees, understand their experiences, and deliver specific experiences to them. With an average customer paying $0.5 to $1 per employee per month, UmWelc.ai currently has 16 brands as customers, amounting to 15,000 paid users and generating around $10,000 in monthly recurring revenue.
Bootstrap Success: Profitable with Lean Team
UmWelc.ai has achieved profitability while maintaining a lean team of six people, all located in India. The team primarily consists of product and technology developers, as the company initially focused on building the technology itself rather than investing in marketing or sales. This approach allowed them to reinvest customer revenue into the company and forego external capital. By managing personal expenses and living a simple lifestyle, Vishal Chopra minimized personal financial burdens, enabling more resources to be dedicated to business growth.
Future Plans: Pre-Seed Funding and Expansion
After launching in 2019 and bootstrapping for several years, UmWelc.ai is now seeking pre-seed funding to escalate its growth trajectory. They are in the process of closing a $200,000 funding round at a valuation of $3 million. With this funding, UmWelc.ai intends to invest in marketing efforts, leveraging their existing pipeline and generating more revenue. Despite the humble revenue figures to date, the company is confident in their ability to scale and prove their worth, now that they have started actively marketing their solutions for the past six months.
Ex Corporate HR Exec builds nest egg to launch HR tech SaaS in 2019. Today he's doing just $10k in MRR but says pipeline is biggest it's ever been. Can he use that data to close his $200k seed round next week?
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