Chennai-based accounting software firm Reach Process Outsourcing Ltd, which owns and operates Reachaccountant.com, was in the news recently when reports emerged that it is close to securing more than $500,000 in its first institutional round of funding from venture capital firm Sequoia Capital. Started in 2007 as an online tax preparation service Reach Tax, the company pivoted to the online accounting SaaS application in April 2010.
Founded by Robin Moses (CEO), the company has a 150-member team and is present in 10 cities in South India. It is looking to expand to North India in three-four months. In a chat with Techcircle.in at the Techcircle SaaS Forum held in Bangalore recently, Moses talks about the firm, products and growth plans. Here are the excerpts:
You are a B2B player and have been growing well. How many customers have you bagged so far?
We call ourselves the online version of Tally; we are a next-generation accounting software firm. Unlike traditional accounting software, Reach Accountant can import and categorise transactions automatically from your bank accounts. This reduces your accounting time by 60 per cent. We also offer a mobile version of our product which is available on Android as well as iPhone. As of now, we have close to 14,000 customers.
We offer a combination of products and services. Our ERP product is priced at Rs 25,000 for the first year and can be renewed for Rs 5,000 in the following years. Then we have a business automation product, targeted at schools, logistics companies, builders and jewellers. It is available at Rs 15,000 in the first year and the renewal fee is Rs 5,000. We also have a billing product which works for traders, super markets, restaurants and textiles. It is priced at Rs 10,000 and can be renewed for Rs 2,000.
Our online accounting software is priced at Rs 6,000, and the renewal charge is Rs 2,000. We also offer a combination of accounting software and accountant to do the accounting. This combo solution is priced at Rs 25,000 per year.
You have a good presence in South India. Are you planning to expand to other parts of the country?
We are a South India-based company started in Chennai, and it is quite natural to explore and make the most of this market before turning our focus to other regions. We currently have 10 offices in South Indian cities, including Coimbatore, Bangalore, Pondicherry, Hyderabad and Visakhapatnam. We are planning to open an office in the north region in three-four months. However, we can't share the details now.
Could you share your revenue figures? Also, there were reports that you are close to raising $500,000 from Sequoia Capital. Is there any update on that?
We have so far generated a few crore rupees in revenues. In fact, we don't have a fiscal target per se, and we target on a quarterly basis. Generally, we try to double our revenue every month or at least every quarter, and we have been doing it for quite sometimes.
I cannot comment on fundraising rumours.
Do you see yourself present in foreign markets?
As of now, we are not looking at foreign countries, as we feel we have enough customers in the domestic market itself. We are looking to build a good customer base here. However, it does not necessarily mean that we will not look at foreign markets in future. Once we reach 50,000-60,000 customers, we will start eyeing foreign countries. But it is at least five-six years away. We will start with English-speaking markets when we expand.
What innovations are you bringing in to your products?
We are syncing our desktop accounting software with mobile phone. It means that when an accounting team is working on a desktop, you should be able to see your data on mobile phone from anywhere, anytime. It will be a big value addition to our customers.
(Edited by Joby Puthuparampil Johnson)