Why Outbridge waited 16 years to raise its first funding round

Opinions expressed by entrepreneur The shareholders themselves.

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After failing in his first two enterprise ventures, engineer-turned-entrepreneur Ajay Trehan has found monumental scope in a enterprise he did by chance in his personal proper. Trehan began his second enterprise in 2003 as CoreBPO, outsourcing BPO providers to abroad shoppers. A whole lot of his worldwide shoppers inquired concerning the background verify course of the corporate makes use of to rent individuals. Since he could not discover corporations providing an exterior reference verify in India at the moment, Trehan known as some individuals working in HR for reference and knew there was certainly an enormous enterprise alternative.

Ajay Trehan, CEO and Founder, AuthBridge

Ajay Trehan, CEO and Founder, AuthBridge

“The demand for authentication is large in India. Proper now, this can be a $2 billion business of which solely $100 million is being met,” Trehan mentioned. After devoting a while to doing intensive analysis, he created Authbridge in 2005. Since then, the corporate has captured a big portion of the market.

Trehan defined that whereas corporations had been doing background checks, the entire course of was tedious as a result of it was guide. What Outbridge did was determine a method to digitize monitoring logs and identification particulars. Authbridge began as the corporate’s first product.

“Earlier, verification was very guide, so the method was poor. Understanding that, we began creating know-how that helps us digitize these monitor data by scanning the info internally and integrating it with no matter knowledge the federal government offers us. Furthermore, loads of corporations have given us The info of their ex-employees additionally with their consent which is then saved in massive repositories.With this, the non-public identification knowledge of the worker and his employment historical past might be checked inside a couple of seconds.Equally, we constructed one other product from which litigation data and prison data of workers might be extracted and aggregated for extra of holding.”

Though the corporate was based in 2005, it has grown at a speedy tempo through the pandemic. Though Authbridge offered a handy various to the guide technique of background verify, many corporations nonetheless went the opposite method because it was essentially the most most well-liked technique of doing background checks in India. Nevertheless, through the pandemic, when practically all bodily providers have come to a standstill, switching to a digital background verify has not been a luxurious however a necessity. Trehan explains that for the reason that firm developed intensive databases throughout its tenure, digital cost has helped it achieve a major market. In reality, buyer acquisition for Authbridge was the very best in 2021.

2021 additionally noticed the height of investor curiosity within the firm. The corporate ran till 2021 however secured $7 million in Sequence B funding in December. Trehan mentioned the choice to boost the cash has been on maintain for some time as the corporate has been rising organically and they’re investing every thing they did into the enterprise. Nevertheless, 2021 noticed fundraising because the demand for his or her providers grew exponentially. The funds raised are transferred to strengthen their merchandise, enhance the gross sales course of, and improve know-how.

“I feel the important thing to constructing a profitable startup that operates in our discipline, one must strengthen their operations and make income from the beginning. Scaling up investments might be delayed to get a giant valuation later when the power of the corporate to earn a living is indeniable,” he mentioned. The entrepreneur provides that this is without doubt one of the many classes he has realized from his previous experiences. He provides, “I had three startups earlier than Outbridge. Of the three, two weren’t doing effectively. Over time you perceive why. So subsequent time you go to work, you are wiser.”

The longer term prospects for the authentication enterprise are distinctive, in line with Trehan. Whereas the corporate’s competitors can be evolving as a result of revenue of the enterprise, Trehan believes that Outbridge’s heavy-handed strategy to know-how enchancment is second to none, so the corporate will proceed its momentum by doubling its enterprise 12 months on 12 months in income phrases.