Bootstrapping with a Paycheck from New Jersey: Suuchi Ramesh, CEO of Suuchi (Part 5)

Sramana Mitra: How much did you do in 2018 in product revenue?

Suuchi Ramesh: It was about 10% to 15% of our revenue at that point. We only started commercializing towards the end of the year.

Sramana Mitra: How did that split change in 2019?

Suuchi Ramesh: It was still consistent in 2019. Our customers through 2019 were still the sourcing platform customers. The pie grew, so the percentage was still the same. We began commercializing the software in 2020. 

Sramana Mitra: Until this point, you’re still operating with just that bit of angel financing?

Suuchi Ramesh: Yes.

Sramana Mitra: What revenue level did you finish 2019 at?

Suuchi Ramesh: We were at above $5 million.

Sramana Mitra: What happens in 2020?

Suuchi Ramesh: April 2019 was when we raised our first round of funding. Once we raised our Series A, we brought on executives. We brought on a CFO, a Head of Platform Delivery, and Head of HR. It was good to get these folks on. That helped us double down on the product and flesh out the engineering and product teams.

At the end of 2019, we started to commercialize the product. 2020 has been great. It’s also seen one of our faster growth rates. We are in a decent place in 2020 because we also got into other verticals that are growing fast.

We have our first couple of software customers this year as well. That’s where we’re at now. The goal is to accelerate selling the product as a separate standalone solution.

Sramana Mitra: But your business is still 10% software. You’re still continuing with the sourcing business?

Suuchi Ramesh: We don’t envision turning that off. We see that as a big differentiator. We connect the entire supply chain. A customer has access just to the software. We see that as a differentiator for us. 

Sramana Mitra: Whom did you raise money from?

Suuchi Ramesh: We raised money from Edison Partners.

Sramana Mitra: In 2020, how is the mix of software versus sourcing likely to change?

Suuchi Ramesh: We anticipate a slight shift towards software to 20%. The sourcing platform revenue, we don’t recognize it in a different way because it’s still driven through the software. The allocation and management of the factories is still done through the software.

From a recognition standpoint, we don’t recognize it as two separate line items. But yes, purely for the login business, that would be 20% this year. Next year, we’ll see the impact. We anticipate the next couple of years split to 40% for software.

Sramana Mitra: How has the COVID crisis impacted you?

Suuchi Ramesh: The fashion industry has suffered. The sourcing platform side has suffered. On the flipside, the demand for SaaS has gone up, especially in the enterprise and midmarket. They recognize the need to invest in a digital supply chain solution.

Meanwhile, they also accelerated entries into other verticals. The second vertical was medical supplies. We’re already certified because we have entered the medical supplies industry in the past for some products. With COVID, it started to have a lot of demand. That helped us. 

Sramana Mitra: Great. Thank you for your time.

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This segment is part 5 in the series : Bootstrapping with a Paycheck from New Jersey: Suuchi Ramesh, CEO of Suuchi
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