Hey - Marc here.

Happy Saturday morning, motivated B2B SaaS Founders!

Here's at least one tip to keep in mind as you grow your B2B SaaS company:

Today's issue takes about 5 minutes to read.

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In today's issue, I share some key takeaways from a recent interview between Nathan Latka, the host of Daily Interviews with SaaS Founders, and Sanjay Varnwal, the co-founder and CEO of Spyne. They discussed how he was able to grow his AI tool from $25k to $250k MRR in the last 12 months.

Sanjay's background is in technology and entrepreneurship, having worked for companies such as Amazon and OYO before co-founding Spyne. He believes that the company's differentiation is its technology, which is built in-house, using deep learning, computer vision, and photography techniques.

About Spyne

Spyne is a software platform that uses computer vision and artificial intelligence to automate and streamline visual content creation for businesses. They help used-car dealerships and marketplaces create engaging VDPs with 360° views and images that sell better.

The company works with large internet companies such as Walmart, Flipkart, Penske Motors, and others to create their catalogs. The AI technology is used to convert the car shots taken in the open ground into very premium studio finish studios, including BMW and Mercedes studios.

Spyne's revenue as of the interview was around $3 million. The company is on track to hit $10 to $12 million in revenue by the end of the year. Spyne has raised $1.3 million in seed funding to date and is planning to raise a Series A funding round of $5 million.

PS They mainly serve car dealerships and have 140+ clients across the globe in regions such as the US, Europe, the Middle East, Southeast Asia, and South America.

Challenges

Lack of funding and COVID-19's impact on the market.

However, the pandemic also presented an opportunity for Spyne as more businesses shifted online, increasing the need for high-quality product visuals.

Advice to Other Founders

Help your customers help themselves.

Competition models can help layman users behave like professional photographers. Spyne's mobile application guides users on how to shoot like a pro, making it easier for anyone to get great results and take better pictures.

Leveraging existing relationships is a no-brainer when it comes to growing your customer base.

Spyne has worked with large companies all over the world, and these partnerships have helped them build a strong reputation in the industry. So, if you have relationships with key players in your industry, use them to your advantage.

Setting ambitious revenue goals is key to driving your business forward.

It's like aiming for the stars – even if you don't reach them, you'll still make it pretty far. Spyne is targeting $10-12 million in revenue by the end of the year, which is no small feat. Don’t be afraid to set the bar high for yourself and your team.

Bonus

Sanjay mentioned that he is currently reading "Hard Things About Hard Things" by Ben Horowitz of a16z.
He also shared that he follows and studies Elon Musk, the CEO of Tesla and SpaceX, for his work ethic.
He considers Google as his go-to online tool, although he also uses ChatGPT frequently.
At 38 years old, he is married with a seven-year-old child.
Sanjay wished he had known about the high risk-reward ratio of entrepreneurship earlier in life. He believes that he should have taken the step to start his own business in his early 20s instead of waiting until he was 34 years old.

TL;DR

Spyne.ai allows car dealerships and people working on the floor to take a picture of a car with an ugly background, put it into their application, and create a beautiful backdrop that they can use for product images online. They work with Walmart, Flipkart, and other such companies. They are currently doing $250k per month in revenue, up from $25k a month just a year ago. They are hoping to scale up to $800k per month over the next 12 months. Their last round of funding was a $7 million seed round led by Excel at a $25 million valuation. They have a team of 100 people and are now getting aggressive about scaling in the United States and Europe.

PS Here is a link to the full interview if you are interested in listening to the full episode: How he grew AI tool $25k to $250k MRR last 12 months, on track for $800k MRR this year

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See you again next week.

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