Kovai.co is aiming for unicorn status as the Software as a Service (SaaS) company pursues a product-led growth strategy, according to founder and CEO Saravana Kumar.
With a leaner product portfolio, Kumar said the business is working on a customer success product — one of the fastest-growing product sectors in SaaS — that will be released this year.
“We see huge potential for this product. On its own, it can reach $50 million annual revenue,” he said. He estimated Kovai.co to reach unicorn status, or privately held company with a valuation of $1 billion or more, by 2030.
The London-based company began by developing goods for the Microsoft ecosystem, such as software for the technology giant’s Azure cloud platform, but has now expanded to develop standalone solutions in categories such as knowledge base software for enterprise products.
Kovai. co embarked on a consolidation push, subsuming some of its products under our flagship BizTalk360, primarily to refine its emphasis on major markets.
The 11-year-old company, named after the Tamil name of the city where it pulls the majority of its crucial talent, crossed $10 million in Annual Recurring Revenue in 2020 and is rapidly expanding.
The company’s imminent entry into the customer success area will pit it against US-based unicorns like Gainsight and Totango, who have made significant inroads in the space.
While the customer success market is still in its infancy, queries have been on the rise.
According to Gartner Research, requests for Customer Success Management platforms increased by 88 percent last year.
Customer success is still a relatively new area in SaaS.
It enables companies that sell software to understand usage, ease of operation, the extent of usage of features and functions, and analytics on why customers stop buying the product.
“It’s a pretty early-stage market. Worldwide, there are about 10-15 companies in the market,” said Kumar.
SaaS valuations have recently corrected, which Kumar believes bodes well for the industry in the long run since it forces a return to fundamentals and time-tested growth strategies.
SaaS enterprises, with their high operating efficiencies and room for development, have the potential to reach big revenue and valuation milestones on their own, he added.
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