Building software businesses is extremely challenging. From idea to design to implementation to monetization, there a myriad of issues and problems that can surface along the way. Out of these common challenges, the platform as a service industry (PaaS) was born.
Servoy is platform built to help modernize complex applications. Their software has been designed to help independent software vendors deliver cutting-edge applications in record time, create state-of-the-art HTML5 business applications, and guide them through the entire process along the way.
How much is Servoy doing in ARR?
Servoy is a pure-play PaaS business that charges its customers on a monthly subscription basis. Pricing varies on the volume of usage each user experiences, with the average customer paying them more than $5k each month at this point in time.
According to CEO Jan Aleman, Servoy now serves 1,000 total customers and is doing $30M ARR today. The company has grown in a healthy fashion over the last year and is up from $21.6M in ARR twelve months ago.
What is Servoy’s churn?
Retention has been a strong point for Servoy thus far: Aleman shared that the company is exhibiting 3% gross logo and revenue churn annually right now. The business has also driven expansion revenue through usage metrics and has net negative revenue churn.
In terms of sourcing new deals, Servoy is acquiring their new customers through their sales team, digital marketing efforts, conferences, and partnerships. The company is willing to spend up to $60k in customer acquisition cost, receiving payback with in 12 months.
How much has Servoy raised?
Launched in 2001, Servoy has grown to scale with just $1M in total outside capital. The business had intentions to raise more capital at various point, but instead elected to self-fund using the founder’s capital.
Servoy’s team of 100 full-time employees is remotely distributed and headquartered in Silicon Valley.