As your business scales, being able to manage inquiries and customer support tickets is critical to landing new deals and retaining valuable customers. Yet, with the copious amounts of inbound and a growing team, it can be nearly impossible to keep up with every request and ensure all issues are addressed.
Luckily for businesses, Hiver was built to solve email collaboration for teams. Their software helps customer support and sales teams manage shared inboxes right from Gmail, track key metrics, and identify areas of improvement.
How much is Hiver doing in MRR?
Hiver is a pure-play SaaS product that charges its customers on a monthly subscription basis. Pricing varies based on number of seats and features, with the average customer currently paying them approximately $20 per seat. With an average deal size of 5 to 6 seats, the company’s ARPU is around $115 per month, according to CEO Niraj Ranjan Rout.
At 1,000 total paying customers, Hiver is doing $115k in MRR right now. Founded in 2011, the company has experienced many shifts in focus prior to settling on their current product offering in early 2017. Ever since doubling down on email collaboration within Gmail, the company has nearly tripled revenue and is up from just $45k in MRR 12 months ago.
What is Hiver’s churn?
The Gmail integration appears to have driven impressive stickiness, Rout explained. Average users of Hiver interact with the product 25+ times per day which has led to 98% gross logo retention per month. The company is also driving expansion revenue via upselling number of seats and features and has hit 102.5% net revenue retention monthly.
Investment into high quality content has helped Hiver generate 80-90% of their sales through organic channels today. The company lands the remaining portion of its deals from AdWords campaigns and budgets around $8k monthly on digital advertising. Overall, they spend around $450 to acquire a new customer, receive payback within 5 months, and assume a lifetime value of $5,400.
How much has Hiver raised?
With just $170k in total capital raised, Hiver has achieved scale by essentially bootstrapping and has hit profitability. Going forward, the company has just closed a $4M Series A from Indian investors on a $15M-$20M pre-money valuation and plans to use this capital to build out additional product features and bolster their marketing efforts.
Hiver’s team of 37 employees are all based in Bangalore.