Earlier today, IIT Bombay incubated startup Covacsis said it raised funding from GenNext Ventures- the VC arm of Reliance Industries, networking giant Cisco and existing investor Blume Ventures. In a quick chat with NextBigWhat, the company’s Co-founder & CEO Tarun Mishra said that it plans to clock Rs 100 cr revenues in 3 years and is looking to capture 50-60% of the market it operates in. Edited Excerpts.
The intent is to become a global player in the space in 3-4 years. In the next 15-18 months, we want significant control in the Indian market with 50-60% market-share. We are targeting manufacturing companies with over Rs 2000 cr turnover in India. Of the top 100 manufacturing companies in India, around 20 are our customers already. Next, we will hit the international market. In the next year 3 years, we want to be a Rs 100 cr company.
How does the investment from GenNext & Cisco help?
This is more of a strategic investment for us. Cisco comes from the technology space and RIL comes from manufacturing. We see RIL as a player which can help us as chase some of our global ambitions. Both RIL & Cisco have the expertise for global play. We need a lot of support on areas such as intellectual property and other legal issues. We’re also talking to large IT companies to become their partners.
Why not a traditional VC?
I always thought that a regular VC may not have great appreciation for us. Not that they won’t understand. But I always felt that strategic investors can play a better role. The need is not money but building the company which requires more. We were profitable from the second year.
Current team strength?
We currently have 63 employees.
How do you charge customers?
There is a one time fee at the time of signing up (for the license) and then there are recurring fees that are calculated based on the services and value addition we provide.
What is your typical contract size?
Typically, we see opportunity of Rs 8- 10 cr from each company that we target. In a couple of cases, we have already realized that revenue potential. If you take the top 100 companies, that’s a Rs 1000 cr market for us.
Why would they spend on your solution?
We sell insights, that’s the ultimate game. We help them understand and act in real-time basis. And we commit return on investment in 6 months. For instance, we started with a Rs 25 lakh contract with one manufacturer two years ago. They’ve seen phenomenal returns and have invested a total of Rs 4 cr on us. The textile company has seen a 50% jump in production after implementing our solution. A leading pharma company saw 25% improvement in asset utilization at their plant in 6 months.