EnrichVideo, a video-based customer engagement solution for banks & wealth management firms, was founded in 2018. They were part of the Upekkha Value SaaS Accelerator program and have since grown Annual Recurring Revenue (ARR) by 4X. EnrichVideo was one of the 10 early-stage SaaS startups that Upekkha’s UP Funds invested in last year.  

The beginning

Before EnrichVideo, co-founder Chandu Sohoni founded Newshunt (now Dailyhunt), a platform that got all Indian print houses on mobile for the first time. After exiting DailyHunt, Chandu and his colleague from DailyHunt, Poorna Nayak, started building EnrichVideo.

“Even before Newshunt, I had a passion for stock markets. We saw that a huge amount of data was being generated in finance every day - closing price, portfolio moments and so on. At the time videos were becoming the most preferred mode of communication. So, we started with analyzing technology stocks like Google, Amazon, Facebook (Now Meta), and publishing videos on stock movement,” says Chandu.

Poorna’s entry point into EnrichVideo came from a developing interest in finance that was triggered by managing her household finances. “So when Chandu was starting up a new financial product, I readily accepted to be co-founder.”

Today, Chandu and Poorna have built a data-driven, interactive video technology to help wealth management firms and banks prevent churn and increase sales with the power of personalized, interactive videos.

The B2C to B2B shift

EnrichVideo was initially a B2C business. When a large US brokerage firm showed interest in creating videos of their portfolio using EnrichVideo, the founders realised that financial institutions were their Ideal Customer Persona (ICP) and shifted focus to B2B.

However, the deal with the US brokerage firm didn’t see daylight. Realizing that selling to big banks was going to be a challenge, EnrichVideo co-created its product working with small boutique firms. Ironically, they landed India’s largest wealth management firm and the journey began.

Chandu says that while they moved to a B2B SaaS model, they were focusing on vanity consumer metrics like daily active users, average time spent, etc. There was no focus on these metrics translating into revenue.

Recalling the lowest low in their journey, Chandu says being excessively dependent on Google for traffic led to their users drying up when Google Finance shut down.

“We were surprised to see a trillion-dollar brokerage firm approaching us to use our product. That's when we realized we had the potential to go B2B and sell to large banks. Until joining Upekkha, we were running our B2B business in a B2C fashion. We did not understand what our customers wanted, we had no idea about pricing. On joining Upekkha we understood clearly what it takes to run a B2B SaaS business,” says Chandu.  

The first smashing hit

Then one of Singapore’s largest banks came calling. The founder duo promised them a 10% to 15% response rate on its interactive videos. To their surprise the bank received a 34% response rate with a positive user feedback. The bank was thrilled and wanted to leverage EnrichVideo further by integrating it with their system.

Banks typically send a 30-page PDF document with complex terminologies, which get a response rate of 1% to 2%. Poorna credits the jump to EnrichVideo’s power to simplify finance through interactive videos that explain. “Moreover, video is a preferred medium of communication over text documents,” she adds.

Choice of Market, ICP and Positioning  

EnrichVideo saw its potential customers in banks after an accidental interest from a US brokerage firm. When the deal fell through, Poorna and Chandu decided to target Indian banks.

They found that the Indian market wasn’t ready to house a new product; enterprise businesses in India, including banks, have trust issues with new businesses. They lean towards established products.

Poorna notes that “a lot of credit goes to Prasanna and Upekkha for forcing us to exit the Indian market and enter the global market.

So EnrichVideo set foot in the APAC market and onboarded two of Singapore’s largest banks as its customers. Founders experienced that unlike the Indian market, their decision-making process and response rates are better, which helped them sell the value their product offers more easily. “The Global BFSI market is very professional and has a seamless approach while buying software. Their testing and quality-check processes are rigorous when compared to Indian banks,” says Chandu.

After success in the APAC market, EnrichVideo is planning its foray into the US market. Poorna and Chandu believe that their product has a high-value offering to convince, and innovation to excite potential customers globally.

The two largest Swiss Banks, with assets under management worth $ 1 trillion, are in EnrichVideo’s pipeline to become potential clients.

Initially, EnrichVideo positioned itself as a text to video converter that sends beautiful videos to banks’ customers. But when the videos are made interactive and personalized, banks have the opportunity to gather feedback from their High Networth Individuals (HNIs) and upsell their products.

“There was a mindset shift about B2B SaaS after joining Upekkha. We didn’t even know what ICP meant back then. Upekkha taught us not to talk to companies that do not fall under your ICP radar,” says Poorna.

Over time, EnrichVideo’s ICP have become large banks because of the number of customers they have and the need for digital adoption for personalized communication.  

Poorna says, “EnrichVideo is not just a video creation tool. It helps banks create and store profiles of their customers, digitally. Over the next 2 years we are planning to enter the US market. Our vision is simple. If any bank wants to communicate with its clients, it has to be through EnrichVideo. That’s what we are aiming for.

Value-based pricing and funding decisions: The Value SaaS way

Coming from a B2C background, EnrichVideo founders have seen that vanity metrics are given importance to get high valuations. Profitability and value delivered to customers are often turned a blind eye to.

Initially EnrichVideo was offered free to acquire customers. But coming into Upekkha, the founders learned that customers are more than happy to pay for the value you deliver to them.“Upekkha’s ValueSaaS taught us about the value we deliver to our customers and the price we charge them for the value delivered,” says Chandu.

What value does EnrichVideo provide to its banking customers? It helps banks gauge satisfaction levels of High Networth Individuals who have million dollar accounts with them. That’s a highly valuable offering and banks are ready to pay for the value they receive.

“It's not a one-time sale and then we disappear. We also ensure that our customers continuously get the value out of our product with the help of our customer success team,” adds Poorna.  

After giving away their software free of cost during their initial days, today EnrichVideo has an annual contract with quarterly billing including a flat fee and usage-based fee. It charges its customers 10 cents for every video sent. EnrichVideo's Annual Recurring Revenue is currently $150K.

Traditionally, banks spend on software annually. “They need to cap their spend. We were charging a lower flat fee. So, when we wanted to bring a variable pricing model - that is the more you use the more you pay - there was some initial resistance. Later, when they understood the value of the product and the benefit of the pricing model, they were happy,” says Chandu.

From a funding perspective, EnrichVideo wants to use the revenue generated from its customers to scale the business. “We don't want to get funded upfront and then decide how to spend the money. We want to be funded by our customers. The minimal funding that we have received so far is from Upekkha’s UP Funds,” Chandu says.

Learning from the Value SaaS community

Community support went a long way in their journey, say the founders. "The community is available to help you anytime. Whenever we need clarification or help, we just drop a message and there we have more than 150 founders offering their advice,” says Poorna.

“We have got founders who have already been there and done that. Learning from their mistakes and experience helps us save a lot of time. The most important thing about the Upekkha Community is the open and honest conversation you can have with them. You can say ‘I screwed up’ and no one judges you. The emotional support you need as a founder is aplenty here. They have got your back any time,” says Chandu.

Takeaways from the EnrichVideo experience:

Talk to your customers

Never decide what is good and bad for a product by yourself. Have those customer conversations very early in your journey and listen from them about what they need in a product. What is a high value problem your product can solve for your customers? Speak to at least 50-100 potential customers who fall under your ICP to understand their high-value problem.

Go global

Build a product for the global market from day one. Selling software is difficult in India. Indian businesses keep you engaged. You go in circles without seeing any end result. Indian enterprises even ask startups to offer their product free of cost. Have some paying customers early in the day so that you have predictable payments.

Invest in sales and marketing

Start marketing your product before you build it. Talk about your product and the problem you solve in your LinkedIn network even before you build it. Most of the founders today focus on technology and the product leaving the sales aspect of it. Customers don't bother about the technology you use but how simple is the solution that you are offering.

(With inputs and edits from Malvika Tegta)