As your business scales, landing new customers inherently becomes more difficult. Your total addressable market is finite, thus incentivizing your team to prioritize the generation of expansion revenue to fuel additional growth.
Kapta was built to help account management teams get increased visibility into existing accounts in order to drive expansion revenue. Their software helps companies grow accounts, coach their team to success, and avoid negative surprises along the way.
How much is Kapta doing in MRR?
Kapta is a pure-play SaaS offering that provides subscriptions on both an annual and monthly basis. While deals range up to $100k annually, the current average customer generates $25k in annual revenue for the Colorado-based business.
According to CEO Alex Raymond, Kapta now serves 30 paying customers and is doing north of $60k in MRR. The company has more than doubled revenue year over year and is now managing more than $1B in total contract value on their platform.
What is Kapta’s churn?
Gross logo churn figures were not disclosed, however Raymond mentioned that churn has been low overall, with customers leaving Kapta only when on-boarding was ineffective. The company is exhibiting 110%+ net revenue retention annually today.
In terms of customer acquisition, the company pays less than $10k to land a new deal today and receives payback within 6 months, on a deferred revenue basis.
How much has Kapta raised?
Initially founded as a customer engagement platform, Kapta pivoted to their current product in early 2016. Prior to the transition, the company raised $1.5M in outside capital and has not raised since.
Going forward, Raymond noted that the company is exploring the idea of raising a $3M to $5M Series A sometime in 2019. The company is cash-flow positive at present and is focused on crossing $100k in MRR before looking into funding options.
Kapta’s team of 3 full-time employees is based in Boulder.