Ragy is a technology visionary, entrepreneur, and investor who has played an instrumental role in the evolution of two business-critical channels for the enterprise: social media and email. Prior to founding Sprinklr, Ragy was the president of Epsilon’s (NYSE:ADS) Interactive Services from 2006 to 2008, and the CTO of Bigfoot Interactive, an email marketing leader that Epsilon acquired in 2005.
Average contract size in year 1 is $150,000 with larger contracts reaching as much as $10m annually.
They use 6 primary cloud products to drive up contract value including research cloud, social cloud, care cloud, commerce cloud, marketing cloud, and advertising cloud.
Each of these products have sub-categories that products new customers can pick and choose from in a la carte manner.
They are expanding contract size 20-40% quarter over quarter across their customer set.
First raise was in 2012in $5m deal. Preferred to lose his own money early on versus someone elses. Once he had success, VC’s found him and gave him great deal.
On his 11 acquisitions:
- We acquire to bring in specific capability we did not have
- Almost every acquisition we have thrown away the code and written down the revenue
- We buy companies for “Domain expertise”.
On product positioning:
Ragy: We had to live in “Social Box” last several years. World wasn’t ready for the end game product we’ve launched today.
They’re now focused on the customer experience for the front office. 20:17
CRO rode CRM wave to give more value to CEO.
CMO road to becoming more value to CEO is predicated on customer experience platform.
March 31 2015 raised $46m raise at $1.2B. Just one year later, in June , 2016 did round of $105m (most recent round) at $1.8B valuation.
Nathan: What is your favorite business book?
Ragy: Four steps to execution
Nathan: Is there a CEO you’re following or studying?
Ragy: Bill Gates
Nathan: What is your favorite online tool?
Nathan: How many hours of sleep do you get every night?
Nathan: What do you wish your 20 year old self knew?
Ragy: That I didn’t have a clue!
Ragy: My goal in life is to create so much value that you can’t ignore me.