- Krepling Investor Updates
- Posts
- February 2024 Update
Introduction
In February, our focus has been on expanding our pipeline through new agency leads and laying the groundwork for the launch of Krepling Pay, alongside preparing for the scheduled development sprints that will bring to life the free trial of Krepling and ensure its maintenance post-launch.
Our development teams have been traditionally divided to cater to our two distinct products. However, we are beginning the process of integrating these teams as their projects start to overlap. This change is anticipated to enhance our efficiency and decrease our overall burn as we move forward.
We have started to see an uptick in closed deals, realized through our agency leads. This uptick is attributed to the unification of our outbound sales and marketing strategies. Our executive team has been focused on creating a more self-reliant sales GTM strategy, emphasizing internal outbound efforts and direct merchant sales instead of just agencies and lead-gen. This shift signifies a departure from our previous reliance on agencies for merchant decision-making, moving towards a more direct engagement with our merchants.
Our recent BDR hires are proving invaluable, developing a predictable ROI for our pipeline. We have also begun working on a sales strategy around Krepling Pay, aiming for a direct approach to merchants. Early conversations with some of the largest web agencies in the US and UK have shown a strong interest in Krepling Pay, highlighting its cost-effectiveness, ease of integration, and customization capabilities without displacing existing tech stacks. These discussions have helped us refine our GTM strategy for Krepling Pay.
Simultaneously, our marketing team has begun work on their own GTM strategy for our core product, focusing purely on self-serve merchants. A few updates ago, I spoke about our pivot to focus our sales team on merchants with ACVs between $12k and $60k only, which not only allowed us to grow revenue more efficiently but has now left the vast array of potential self-serve merchants to our marketing maestros, complemented soon by the magic of a completely free trial of Krepling. We've learned an incredible amount from this pivot. While our competitors remain entangled in servicing overwhelmingly large merchants, with big names on paper, huge GMV numbers, and exuberant monthly fees that sometimes go into the tens of thousands, we've seen where e-commerce is really heading. It's a world where sales are only needed for direct engagement with higher-tier ACV merchants, who are growing their tech stack and in dire need of a tool like Krepling, where friction for onboarding is minimal, and where the real growth lies in understanding and reducing the barriers for those at the lower end of the scale. This is where we feel Krepling is truly unique in its positioning. A platform where a merchant can start small and grow big. We're applying these same discoveries to Krepling Pay too, a part of e-commerce that is even more political than the enablement space Krepling’s core product is already disrupting.
Revenue 🚀
Krepling is now at $240.2k in MRR, pacing 10-15% MoM revenue growth.
Other KPIs 📊
Average monthly gross churn (%) is at 1.6%, Average MRR net retention is at 104%, Average gross margins are at 95%, ARPU is at $4.5k
Burn 🔥
Krepling burnt $44,320 during the month of February.
Runway 🛫
We estimate we have 24-36 months of runway given the current cash on hand.
Team Size 👥
Krepling currently has 12 team members (including both co-founders).
Click here to explore openings at Krepling
We are hiring in almost every sector! Feel free to reach out with resumes you feel we should be taking a look at.
Product Update ⚙️
The current development status of V0.1.0 of the product (titled 'Core Release') is at 91%.
Asks and Discussions 🗣
We’d like to inform shareholders that there is an available allocation of $820k within our Seed Round, specifically reserved for insiders and potential angels.
While we are not in an active fundraising phase, we are having exploratory discussions with potential Series A firms. Our intention is to understand and align with partners whose vision and commitment match our long-term goals and to start these conversations from a position of strength (i.e not need the capital)
That being said, we’re looking to increase our sales and marketing burn and, should there be a mutual fit, we are open to welcoming additional capital from angles insiders to strengthen our case for a Series A down the road.
Reach out 👋
My email: [email protected]
If you would like to quickly catch up let's schedule 15 mins here:
Best, Liam