A personal introduction to #SaaSx4, and why I believe Chennai is the place to be right now for SaaS startups

I have worked with iSPIRT for many years now and one of my key lessons has been around the dynamics behind community and ecosystem building. I have learnt that just having a plethora of startups in one geographical location doesn’t make that place the natural epicenter or capital. There is something more to it, an X factor that goes beyond mere arithmetic.

This X factor is something that I think Chennai has.

There is no doubt in my mind that Chennai is the capital of SaaS startups in India today.

Firstly, the numbers themselves are mighty impressive. Just between Zoho and Freshdesk, two of India’s bellwether SaaS companies, there is around $400m in revenue, about a $100+ million in funding and around 4000+ SaaSemployees.

But what is more significant is that around tentpole companies such as these, a massive ecosystem for many other SaaS companies has been created in Chennai. And this is going from strength to strength as we speak.

To explain why I am personally excited about Chennai and its focused and committed founders who are building companies in this same mould, let me go down memory lane a bit. If the story seems a bit rambling, please indulge me as it is a personal story that is close to my heart.

When Chennai was Madras

My early memories of Madras are when I was probably seven years old and my uncle was posted at the Tambaram Air Force station. When we travelled from Delhi to Bangalore by train, the GT Express would halt in Madras for 5 hours as the engine would get changed. Our uncle would pick us up and we would go to one of the beaches. It was also probably one of my early experiences by the sea. I also got to spend holidays a couple of times in the quiet and green Air Force Base in Tambaram.

Image Courtesy — FriendsofChennai

I got placed by NIIT as a GNIIT in a Madras-based software company called RiteChoice technologies (Yes, I was a GNIITian!). They had built the back office software for the National Stock Exchange and I joined as a Support Executive to help them with the sales/support/installation of the software in the Delhi region. We got intensive training about the stock market and how the software functions at the company headquarters. It was great fun those days as you worked for 6 days and the 7th day would be an off site with colleagues who had come from different cities. In those days, North Indian food was hardly available in Chennai and it was tough to have idli/dosas for almost two months (no offence to all my South Indian friends!). The software segment was just picking up at that time and there were very few IT companies.

Ritechoice was a product company at a time when we really did not know the demarcation between a service and a product organisation, and their other software was called Suxus. I remember interacting with the founding team; they were full of passion and keen on building more products.

The Ramco mafia

I moved on from Ritechoice after six months as we were not able to sell/support the software in Delhi. There were lot of changes being done at NSE and in hindsight, I now understand that we were not able to find the product market fit. I continued with my journey of working with Internet startups with DSF Internet & Trisoft Systems, until NASSCOM happened in 2002. I was again able to interact with a lot of software companies.

In the early days whenever we used to talk about products, the company which drew all the limelight was Ramco. It was probably one of the fastest growing companies then, selling ERP software and making a big impact in the user community. It was fighting SAP in those days. I remember that there were around 60 ERP companies at one point of time. Other notable companies in Chennai at that time were Polaris Software(now acquired by Virtusa) and MyAdrenalin. Apart from these companies, there were a few IIT-Madras incubated startups like as well.

And there was another small company called AdventNet, which had just started making some noise.

The Role of Proto.in

I was introduced to the Twitter/blog world by Kiruba Shankar & Vijay Anand. I remember following them and getting to learn about social media through some of the sessions at NASSCOM. In the early days of the startup ecosystem, very little action used to happen in Chennai, but Proto made a big dent by getting all startups under one umbrella. For me attending Proto gave me exposure to the startup community. I got to see Ashish Gupta surrounded by many people and later on got to know that he was one of the founders of Junglee. The event was at IIT-Madras and it was hard to get into any of the halls. They were just full. The man behind the show was Vijay Anand. There were others, of course, nothing in our ecosystem is a one man show, but Vijay did a magical job of getting it all started.

I remember how Shalin Jain proudly demoed DoAttend which got built because of Proto. Wikis were used quite extensively first in Chennai for Proto: I’m yet to see another event, even in these event-rich times, which uses Wikis extensively.

Some of the companies that showcased at Proto 1

Some of the well known companies like Myntra, iXigo, Drishti (Now Ameyo), ValueFirst, iCreate (Now Fintellix), Novatium, etc launched their products at Proto 1. Do take a look at Proto 2 as well. Thanks to Amit Ranjanwho continued to upload all these decks and also write about them at WebYantra. If Proto was alive today, it would have probably been the biggest enabler of the startup ecosystem in our country. Pity that it isn’t, but we need to remember that the movement actually started in Chennai.

Me at NASSCOM, and how the Emerge community took off

Some of the initial people who really made the EMERGE community happen were people like Suresh Sambandam of Orangescape (now KissFlow), Late Mr. Raja from Coromondel Infotech, Lakshman Pillai of LPCube, and George Vettah of Kallos. These were also product companies and played an important role in building the community. I continue to stay in touch with Suresh and leverage him as much as I can in building the ecosystem.

Apart from Delhi, it was the EMERGE conclave in Chennai that was a roaring success. So many people took ownership of the event. It was almost completely driven by people in Chennai and we successfully were able to build a community for product companies.

For the first time, Sridhar Vembu of ZOHO spoke at a NASSCOM conference. It was at the EMERGE that ZOHO won an Innovation Award for the work that they were doing to hire freshers and train them. They continue to do so and it’s also very impressive to see the ecosystem that ZOHO has built in Chennai. The ZOHO mafia (Girish/Freshdesk, Arvind/Zarget, Sridhar/Credibase, Krish/ChargeBee) has created many founders (around 42, says Quora). The other Vembu brothers are also still going strong. Clearly ZOHO has played an important role in creating a culture in Chennai.

The unfolding story

In the early days of iSPIRT, I did get to do some playbook roundtables at the Orangescape office. I remember Ashwin Ramaswamy of PipeCandy(in those days it was called ContractIQ) volunteered for most of the playbook roundtables. I remember I got introduced to Girish Mathrubootham by Sairam Krishnan for the first time in their small office….met them in the boardroom and i remember one of the members was working in the boardroom as they were falling short of space 🙂

First Playbook by Shankar Maruwada in Chennai

I did get to do some playbook roundtables in the early days of iSPIRT, basically i would use Chennai to validate some of the playbook roundtables. Most of the playbooks were done at Orangescape and more recently Aditya Sanghi(Hotelogix) got some 6–7 founders from Bangalore to learn SaaS scaling from Freshdesk. I remember, it was one of the insightful playbooks and I got to meet Sanjay Parthasarthy from Indix for the first time at their office and also did a tour of the ZOHO campus which was quite far from the city.

In 2014, I was in Chennai for some meetings. It was around the time of SaaStr and it was then that it struck me that two large SaaS companies are already based out of Chennai, that and many others like KiSSFlow, UnMetric, Indix, Chargebee, Pipecandy and Zarget were all SaaS companies. It became clear to me that this city had a strong DNA of building SaaS/B2B products.

I and called up Shekhar Kirani from Accel (I consider him to be the Force behind the SaaS ecosystem in India). I bounced this idea off of him, asking for support for something around SaaS in Chennai. I got a green signal after which I reached out to Suresh and Girish. I got full support from them and in less than 20 days, we pulled together SaaSx Chennai.

Full credit to Suresh Samabandam for coining SaaSx. By the way, EMERGEOUT was also his coinage. The energy at SaaSx is always very high and we did the first three editions every six months. The beauty of SaaSx is that it is by entrepreneurs for entrepreneurs and some real sharing is been done by people like Girish, Suresh, Avlesh, Paras, Krish, etc..

Playbook Led by Avlesh(WebEngage) & Suresh(KissFlow) at SaaSx

As iSPIRT, we are blessed to have strong support from such people who believe in paying it forward and are happy that we have been able to create a robust & safe place for SaaS founders. We will continue to stay focussed, curate the audience, and ensure that the platform becomes a meaningful one for SaaS founders in India.

Audience from the first SaaSx

We are all excited about the fourth edition of SaaSx in Chennai on 17th March, and I’m proud to continue to bat for the city (like Krish Srikkanth) and make an impact in the SaaS ecosystem.

Edited by Sairam Krishnan & reviewed by Sumanth Raghavendra

SaaS-y marketing with Nuns: How @ChargeBee used guerilla marketing to promote an unsexy B2B product.

This is the story of how we spiced up our marketing campaign, brought a lot of smiles and drew attention during the recent SaaStr Annual event.

Background

The objective is to create the largest Enterprise Software company from India. This can be accomplished if top entrepreneurs can learn each other and then pass the learning to others.

When doing your job right involves going unnoticed, how do people find out about your product? Managing subscriptions and recurring billing for Software as a Service (SaaS) companies places us in this category. This is the story of our latest efforts to get the word out about Chargebee.

“This is a revolution, there will be a Before Chargebee (B.C.) and an After Disruption (A.D.), in the industry!”

“O.K. but how do we get people’s attention?”

“We play on the B.C. and A.D. theme; this is year 0 for subscription management.”

“O.K. but HOW do we get people’s attention?”

“Let’s have people dressed as evangelists hand-out flyers.”

“Why not sexy nuns?”

“Hmm, na, company image? We’re a billing company, we must stay somewhat serious. ”

“OK, regular nuns? Nuns handing out the 10 Commandments of SaaS?”

“Might work! But how do we go about it?”

Guerilla Marketing Nuns

SaaStr annual would be full of attendees from our target audience; it was approaching fast. We had just a couple weeks to write out the 10 Commandments of SaaS, get our design team to run its magic, print the mini tablets, and find the nuns!

On opening day, we were struck by divine luck, the SaaStr Annual was being held across the street from a Cathedral!! It was meant to be.

Our plan was to distribute the “10 Commandments of SaaS” as flyers. We included the hashtag #SaaS10 hoping this would become a little social media event. As it turned out, we were violating the event regulations by distributing marketing materials without sponsoring the event. We were gently warned by SaaStr folks to keep it out of the venue. In all fairness, they were right and we moved to corner of street to distribute.

But we then ran into another problem; the building’s agreement with the city forbids distribution of materials in front of the venue. We were however, told the sister could stand in the area in front of the conference entrance if we weren’t distributing anything. We had to regroup.

“Let’s print this tablet size?”

“You mean like the actual 10 Commandments?”

On the second day, the sisters were holding tablet sized commandments. And the result was surprising!

When the sisters had been trying to distribute flyers, people thought they were authentic nuns protesting the conference.

By having them hold big tablet sized SaaS Commandments, people realized this was just good fun, and started asking the nuns to take pictures with them. The social media fall-out was much stronger than the first day!

We brought a lot of smiles. More pictures and even more Tweets.

Plus we landed a 90 second interview. 🙂

Prior to the event we were a bit worried that doing something edgy to spread the word about us might affect our corporate image.

As it turns out, this had a hugely positive impact and we had a lot of fun doing it. Your smiles and pictures made us so happy! Thank You!

Here is a quick run-down of the operation :

  • $400 number of dollars spent for costume, printing.
  • A few hours of planning, design & execution.
  • Finding people for the sister act
  • 5000 SaaStr attendees.
  • 3-4 hours of exposure when most folks are walking in.
  • 2000 views. 100 likes. 25 retweets.

And the 10 Commandments :

Be My Valentine

Feeling the buzz from this event’s success, we had 24 hours to complete another marketing tactic if we were to be in time for Valentine’s Day.

Earlier in the month, we had decided we wanted to occupy mind-space. We decided to send a Valentine’s Day card (yes an actual paper card) to 200 start-up C.E.O.s, to grab their attention, and hopefully make them smile.

We created this :

Chargebee-Valentine

We spent the better part of the afternoon stuffing envelopes, finding mailing addresses, licking stamps, and placing a heart sticker on the back so these wouldn’t be considered “junk mail”.

We managed to ship them all out in time….the only problem is that we have no way to trace the effectiveness of this method. No “open, click-through” stats for snail-mail.

Our next step is to reach out to the 200 people via an email about this blog post to see what the response is. Fingers crossed!

We’re happy to share our tactics but remember the 10th Commandment of SaaS : “Thou shalt not covet thy neighbor’s growth hacks.” 😉

If you think managing recurring revenue, subscriptions and invoicing is a pain in the SaaS, let us help you

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