Bootstrapping to $100 Million: Edifecs CEO Sunny Singh (Part 5)

Sramana Mitra: You were doing what kind of revenue level now?

Sunny Singh: In 2008, we were about $8 million to $10 million.

Sramana Mitra: In 2006, you’re back in a healthy state. What’s the next major development?

Sunny Singh: In 2001, when all this was going on, we came across this mandate from the government called HIPAA where all healthcare transactions had to comply with HIPAA standards. We entered healthcare but we didn’t have any idea about it or how it works. We just focused on taking on one customer at a time and making them successful. Before you know it, after five to seven years of good traction, healthcare companies started loving us. We had new approaches to solving problems. We were very customer-centric and our products were really good. From 2006 onwards, from being an EDI tools company we went on to become a products company because we started doing production transactions. We pivoted again to healthcare by supporting HIPAA. Then, we pivoted again by selling more of providing services starting 2007 to 2008. We started building out that competency.

Fast forward to 2008 to 2009, we became more mature. We took off. Because the HIPAA mandate was maturing and our products had matured, we had gotten traction and became more and more of a healthcare company. Only less than 2% of our revenues come from the non-healthcare segment. We grew from a $7 million company all the way to more than a $100 million company this year. It really took off and pivoted really well from having products in healthcare and selling it to the IT side of the house, to selling complete solutions to the IT side of the house, to now selling solutions to both the IT and the business side. It has been a very nice growth from 2008 to 2014. We expect to grow even faster over the next three years.

Sramana Mitra: Did you raise money or did you continue to grow organically? Is this still a bootstrapped company?

Sunny Singh: Edifecs doesn’t have any outside investor. We’ve been profitable for the last 14 years now. As a company, our fundamentals are exceptionally strong. Our revenue stream is very diversified and also diversified across product lines. We don’t depend on a product line or a customer. We are a $100 million company with no investors, no debt, and are profitable. You can talk to any of our healthcare customers and they will say great things about us. Circumstances forced us and we took action based on our own thinking. We had to innovate with our backs on the wall. We became more disciplined. We never lost the core value and we never let our customers fail. Those two really define Edifecs more so now than ever.

This segment is part 5 in the series : Bootstrapping to $100 Million: Edifecs CEO Sunny Singh
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