Sidharth Kakkar knows all about the pain of leaning on a giant spreadsheet. When he started his old company, Freckle Education, he got to the point where the main spreadsheet filled with data that everyone used would no longer load or crash the computer.
His company was eventually bought out, but that sore spot stayed with him, so when Kakkar left, he started doing discovery interviews about how other companies handled what he called “nightmares.” spreadsheets”.
“One of my favorites was a CFO who took a company public, and at the roadshow people were asking for all these cohorts, and his team was going crazy putting them together just for the roadshow and literally not doing anything with them anymore ,” recalls Kakkar.
That’s when he and Michelle Lee, his first bizop hire, decided to launch subscription intelligence startup Subscript in December 2020. Targeting subscription-based SaaS businesses, Subscript develops APIs that fetch data from CRMs, general ledgers, and billing products and organizes it in a way that the data is not only easy to find, but provides up-to-date metrics of subscription revenue.
Kakkar says the subscription business has recently seen a “ridiculous tear,” but while they like the idea of returning or recurring customers, not everyone wants to use the language of subscriptions to make business decisions.
The company, still in beta, has provided $3.75 million in seed funding, led by First Round, with participation from 40 angel investors, including Plaid CTO Jean-Denis Greze, the founder of Pilot Waseem Daher, CircleCI+ Founder Dark Paul Biggar, Head of Growth Postman Jesse Miller and Gusto Head of Growth Allen Wo.
Subscript creates custom data pipelines, and the pipelines create what he called a “source of truth revenue” in Subscript. For example, if someone completes a deal in Salesforce for $1 million in bookings, the system will separate what is considered one-time revenue and recurring revenue. The finance manager will have the final say on what he sees.
From there, the user can slice and dice the data into what they need for investors, board and management teams to make data-driven decisions.
“You can have the big decision points that the leadership teams are looking at and also use them to course-correct,” Kakkar said. “Sometimes you don’t know in the middle of a term if you’re going to hit your number, where you’re headed and how things are going.”
Subscript currently works with 21 clients, including Circle and Flipcause, and tracks over $100 million in client revenue. Kakkar said that’s a number the company internally takes as an indication of the scale of the business.
The company is opening its beta and will use the new funding to build the team and the product. Due to the fact that it is still at the beginning of the journey and building a complex product, Kakkar said adding more people will be key to engineering fictions and market support.
As more companies structure their business models to accommodate the type of recurring customers that subscription businesses have, Subscript sees how vast the opportunities are to accommodate these types of ideas, such as user-based billing. ‘use.
“This pattern is really becoming mainstream,” Kakkar added. “There’s a depth of complexity to these types of businesses that we dive headfirst into, but it’s impossible to do that without software.”