Bootstrapping from Guwahati: Anjan Pathak, CTO and Co-Founder of Vantage Circle (Part 4)

Sramana Mitra: How many companies do you have today?

Anjan Pathak: In India, we almost have all the big IT companies as customers except TCS and IBM. Tata has selected us as their preferred vendor. 

Sramana Mitra: What revenue level are you at right now?

Anjan Pathak: We will be doing about $30 million this year. 

Sramana Mitra: $30 million from Guwahati with 89 people. 

Anjan Pathak: That is correct. 

Sramana Mitra: I have a few questions about the revenue split. It sounds like you have three different revenue streams. You have brands giving you placing products that you market to corporates. You have the rewards that corporates distribute into your wallet that you take a commission from. Lastly, you have the float.

How does the $30 million revenue split amongst these three streams? 

Anjan Pathak: Whatever the revenue is for rewards, that is the total revenue that I’m talking about. What we can declare as our profit is that five percent. 

Sramana Mitra: $30 million is the reward that is being distributed through your system. That is not your revenue though. Five percent of that is your revenue. Your revenue is really $1.5 million and not $30 million. 

Anjan Pathak: Correct. We have breakage there as well, so we will probably make about 10% from the whole thing. The money stays with us. There is breakage as well, so people in the company don’t redeem their points. That is how it works. Our cash flow is okay. It’s decent.

Now, we have two products in addition to Vantage Points and Vantage Circle. The third product that is doing well is Vantage Fit, a fitness product. It is one of the hottest products right now.

We have built an app where employers can run contests. That is a subscription-based product. We are charging one dollar per employee. It has just started. We already have quite a few clients in the US. 

Sramana Mitra: What do they do? Explain to me what people get from the subscription. 

Anjan Pathak: They get an app. The employer gets an app that they can give to their employees. The idea is that they will run various contests where things are tracked through variables. For example Garmin, Apple Watch, and Fitbit can track their steps.

The mobile app can also track the steps. It’s an app where you run some contests between employees. Due to COVID, that product is being taken up by a lot of companies. They want to get their employees back on track. They want to make their employees move and they are starting with walking.

We also have running and cycling competitions. The whole idea is that employers are incentivizing employees to move and exercise. 

Sramana Mitra: You said that these are US customers?

Anjan Pathak: Yes.

This segment is part 4 in the series : Bootstrapping from Guwahati: Anjan Pathak, CTO and Co-Founder of Vantage Circle
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