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Pandemic accelerating adoption of SaaS solutions by enterprises across the globe

Aarav Solutions draws 70% revenues from services, 5-20% from emerging technologies

Raj Darji,  Founder, CEO, Aarav Solutions
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Raj Darji, Founder, CEO, Aarav Solutions

Global product engineering and IT consulting company Aarav Solutions have witnessed increased adoption of its services during this pandemic. The company, which counts many Fortune 500 companies as its clients, also sees its growth accelerating further as it plans to come up with new range of software products in the next six months. In an exclusive interview with Bizz Buzz, company's founder and CEO Raj Darji said that the company is hopeful of reaching the $100-million revenue mark in the coming years. The company, which draws around 30 per cent of its revenues from product segment, is also planning to add more people to support its current growth rate.


Does the pandemic accelerate the adoption of SaaS (software as a service) solutions? Therefore, SaaS companies are seeing more adoption during this pandemic period. What is your take on this matter?

Enterprises across the globe are increasingly adopting SaaS solutions. Though this is happening for quite some time now, the adoption has definitely increased during this pandemic period. This is mainly because many businesses are migrating to cloud. As global enterprises adopt digitalisation, SaaS companies are better placed to provide customised solutions to businesses.

Do you work with Fortune 500 companies and what kind of services Aarav Solutions provide to these marquee clients?

We serve the Fortune 500 companies. That includes India and North America. These services fall under B2B (business to business) services category. We provide product engineering services to these clients for whom we go there and solve their problems rather than providing human resources to do that task. We are not into the business of providing resources to accomplish the task. We discuss with the clients. For instance, if there is a revenue leakage, which the client is not able to check then we identify the problem and give them the solution. For providing this solution, we may have to build the algorithm, or design a solution by leveraging AI (artificial intelligence), ML (machine learning) or data analytics. So, whatever is required, we build it and solve the problem. We are a problem-solving company than a typical resource-providing company.

How much revenue are you currently drawing from products? Is it growing for the company?

Currently, we are drawing 70 per cent of our revenues from the services and rest 30 per cent from products. Of course, services revenues are growing for us. Until, Aarav Solutions didn't have technically a product. We were into services business. However, our objective was not to stick to only type of business segment. Hence, we have diversified our business, so that we can serve multiple segments in terms of services and products portfolio. That is the reason, we enter into product business. And now the products we are developing - for instance in machine learning and deep learning space- are likely to change the prospects of serving multiple segments be it marketing or advertisement, be it anomaly detection, be it operations. So, we are coming with a set of products that will change the perception of the people. We have applied for patents on these products. That is going to change the game. We are expecting this to happen may be in next three to six months. So, our objective is to move more towards products side, which will enable us to serve clients better.

How big is your team now? Are your planning to add more people to sustain the growth rate?

From one person, we are a 200-people strong team now. This is because our services are different (from other companies). Majority of our people are operating in offshore locations. The way we operate is around 60-65 per cent of our people work from offshore locations like India. The rest work from the US, Canada and other locations. We have hired nearly 30 people in the last four months. We will continue to hire as we grow.

How much revenue is Aarav Solutions drawing from emerging digital services through leveraging emerging technologies?

We render good services to clients in the emerging technology space such as AI, ML, big data among others. By using AI, we are solving the problems faster. Algorithm built from AI can solve a lot of problems. From the product side, around 10 per cent of our revenues come from digital technologies. Because we have certain products that have AI on the top.

On the services side, it is a mix and match. Out of 70 per cent of the revenue that we are drawing from services side, 15-20 per cent of the revenue is coming from emerging technologies.

What is the growth rate are you currently witnessing? When the company is expected to touch $100 million revenue mark?

As a private limited company, we usually don't reveal our numbers. As far as growth rate is concerned, we are growing at 100 per cent year-on-year basis. At the current growth rate, it is possible to be $100 million revenue company in next three years. We are planning to come up with new products as told earlier. If those (software) product launches are successful, then I don't see $100 million mark is difficult for us.

Which are the companies you collaborate with to provide services?

We work with a wide range of service providers. For example, we work with many product giants like Oracle or cloud service providers like AWS, Azure and others. We also have our cloud offering- Adptx Cloud. We provide a range of value-added service offerings under Adptx Cloud.

We have seen that it becomes difficult to manage both product and services under one umbrella. As you scale up, how do you plan to manage both?

We have now both the offerings under one portfolio. However, if you look at our product portfolio, we have segregated them. For instance, under our product portfolio, we have Adptx Cloud. But Adptx Cloud is not one product but a portfolio of products (bundled into it). It provides services relating to cloud and it also has many AI products offerings.

Debasis Mohapatra
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