Machine learning. Artificial intelligence. Computer vision. All of these terms are hot in the technology space today and if your business isn’t exploring how you can take advantage of the latest trends, you could be left behind.
ParallelDots is an artificial intelligence platform built for developers and enterprises globally. Their APIs, plugins, and SmartReader are helping simplify machine learning and artificial intelligence for everyone.
How much is ParallelDots doing in ARR?
ParallelDots offers plug and play APIs for both developers and enterprises and generates revenue on a pure-play SaaS model. They provide developers with a freemium product that allocates 10k monthly API calls for free and charges once this threshold is crossed. On average, enterprises pay them $30k on an annual basis.
With their freemium product, ParallelDots serves approximately 12k developers each month with roughly 5% of those users converting to paid plans. From a business perspective, their on-premise solution for enterprises is currently generating the most revenue.
According to CEO Angam Parashar, ParallelDots is serving 15 enterprise customers today and is doing $500k in ARR at this point in time. Over the last three months, the company has experienced significant growth and has consistently added 2 to 3 new enterprise clients each month.
What is ParallelDots’ churn?
ParallelDots has not churned any of their enterprise clients thus far. Parashar noted that companies typically agree to 3 year long deals and pay annually, upfront. From the developer side, Parashar explained that churn is high, but did not disclose specific figures.
In terms of customer acquisition, ParallelDots has been able to land new enterprise deals with between $1,500 and $2,000 in spend.
How much has ParallelDots raised?
Launched in 2014, ParallelDots kept their burn rate low for the first two years prior to raising a $2M equity round in 2016. Today, the company has grown their team to 30 employees in India and the U.S. and has not hit the cash flow positive mark yet.
Going forward, Parashar said that the company is in talks to close a $5M Series B round on a $20M pre-money valuation.
