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- Hi, I am Sourabh Nolkha. In 2023, I left my role as a Finance Controller at Mensa Brands – India’s fastest-growing unicorn to launch ZenStatement (SimpliFin) an AI-powered cash flow management solution.
- I had no solid business idea, no co-founder, and no team. It all came together along the way.
- Finding a co-founder was very important and I met 150 people – almost 3 -4 folks a day and eventually found my co-founder.
Backstory
I started my journey with Infosys, India in early 2009.
Not long into my tenure, I decided to spice things up by taking a sabbatical to work with Niwant, a nonprofit with a software division run entirely by visually impaired individuals.
They had just landed their first major client and needed program management, so I stepped in. This was an incredibly enriching experience.
After my time with Niwant, I returned to Infosys.
Things took an exciting turn – I got an opportunity to work for Apple from India, helping them build a global treasury management system.
In 2013, Infosys decided to ship me to the US to continue working on this project.
I spent a couple of years immersed in Apple’s global treasury management, marking the beginning of my obsession with the financial supply chain of products.
Following my stint with Apple, I worked with Deloitte Consulting in the US for a couple of years, again focusing on the financial supply chain side of products.
For a couple of years, I once again dove into the financial supply chain side of things. During this time, I developed credit management and collection solutions that piqued SAP’s interest.
I helped SAP build parts of their product, which is now used globally.
It was an excellent start to my journey!
Idea was born and validated
All in all, these experiences made me realize that I had a strong understanding of foundational finance and the application of technology in business.
This realization sparked my determination to start something of my own.
In 2016, due to certain restrictions in the US, I decided to return to India.
I immediately enrolled for an MBA with the Indian School of Business (ISB) and graduated in 2017 – a transformative year that broadened my perspective on business and entrepreneurship.
2017 was a pivotal year for the Indian startup ecosystem, especially for SaaS companies.
This was my entry into the Indian startup ecosystem, where I spent the next six years working with various startups, playing CFO roles – ITILITE platform for business travel and expense management, Mensa which focuses on building digital-first consumer brands and a few more.
Both Mensa and ITILITE were part of the B2C sector. It was here that I noticed a significant shift in B2B businesses adopting B2C models.
This shift brought new finance-related challenges, particularly in cash flow management and financial analytics.
While still working at Mensa, I took a deep dive into the market to explore existing solutions and identify gaps.
Through countless conversations with potential customers and industry players, I validated the problem statement and assessed the competition.
Quit my job
After six years in the startup ecosystem, I was more than certain that I wanted to dive into the B2B tech space and tackle these challenges head-on.
It was time to roll up my sleeves and get to work on something new, something that could make a real difference in the world of finance.
I decided to leave Mensa, with no idea what I’d do the next day or who I’d start it with. But I knew it was time for a change.
Of course, I made making sure my family had a two-year financial buffer.
What was the plan? The idea was to either
- Move into the B2B tech world, whether in a sales role, consulting role,
- Joining an early-stage startup
- Or starting my own.
Decided to start up
I broke down my tasks during the first quarter post-Mensa, working on each thread every week and making progress.
It dawned on me that I couldn’t find any good startups to join, so I chose to pursue my idea.
In July 2023, I started ZenStatement (earlier we called it SimpliFin). The driving force behind starting SimpliFin was the desire to simplify the lives of finance professionals.
We estimate the market opportunity to be around $1 billion in India alone and $50 billion globally.
What next?
But how do you start? Quitting my job to product launch
Finding a co-founder
I was certain that I would need someone with a product and engineering background.
Unfortunately, my circle of professionals consists mostly of business or finance folks and no one interested in the startup ecosystem.
No option but to look outside of my network! I met almost 50 to 100 people while trying to find my co-founder.
I also tapped into my VC network and reached out to investors in other startups I had worked with, and asked if they knew someone interested in partnering with me.
After trying all these combinations, and meeting 2 or 3 people almost every day for three months, I finally found my co-founder Ankit Narsaria.
Finding a co-founder is like finding a needle in a haystack; it’s a leap of faith.
(There are programs like Antler, Buildspace, Entrepreneur First, and Y Combinator where you can meet like-minded people and potentially find your partner. You might want to do a pilot project with them for a month or two to figure out your chemistry.)
Building an MVP, self-funded
We adopted cost-effective strategies by working with part-time professionals from our network and interns, keeping our burn rate low.
We invested money for the first six months prudently, relying on part-time developers to build our minimum viable product (MVP). This approach was necessary due to our limited cash flow.
Quality is also something that you need to control and be deeply involved in.
Onboard our first client
We took the MPV to our first customer, which was a unicorn.
So that was a major testament to our ability to execute and, the product’s relevancy.
Angel round
Once we onboarded the first customer, we went to raise the angel round.
It triggered the process of hiring full-time engineers, and even interns were utilized to build, which took some time.
Built a team
That small angel investment acted as a foundation to build a team.
This took some time.
To build a team, we needed tech resources—product and engineering professionals. I handled sales, and my co-founder handled products.
Initially, with limited funds, we couldn’t afford a full-time engineer, so we looked for freelancers who could work part-time.
Want to start your own?
Your purpose has to be very clear in your mind
If you are not convinced of it, the rest of the journey will be hard.
Validate, validate, validate
There are no shortcuts.
From a statistical significance perspective, talking to at least 30 potential customers or industry experts is the magic number.
Through this process, I confirmed the gap in the market and the opportunity for SimpliFin.
By engaging in these rich conversations, I was able to refine our value proposition and ensure our solution was tailored to real-world needs.
Takes time to go from idea to execution
I contemplated starting something in 2016 but spent the following years refining my ideas.
It took me about eight years to reach the point where I was ready to start SimpliFin.
The key was to continuously acquire insights and prepare for the right moment.
Think about the ingredients required for your startup
For those seasoned professionals considering starting their ventures, it’s vital to identify the necessary ingredients and work on acquiring them.
For me, it was:
- Financial preparedness. Are you financially ready to start? Getting funding is not easy. So have a two-year cash runway planned to avoid running out of fuel midway.
- Building a solid CFO network over the last 5-6 years has been invaluable. This network wasn’t initially intended for starting a business, but it became a crucial asset. Being part of the community and contributing to it has paid off now.
Gestation period before you start generating money or raising capital?
This period could range from one to two years, depending on whether you’re bootstrapping or seeking funding.
Despite any past experience, figuring out a product-market fit or service-market fit can take time. For me, even with 20 years of experience, I needed to give it a couple of years to materialize. You need to give it an honest chance to succeed.
Convincing your family and having a support system
Outline a two-year timeline, and discuss these plans with your family and mentors. They can help identify any gaps in your plan. This prep work becomes even more important if you are already ahead in your career.
Post their conviction, you can start your journey, by talking to customers, validating the problem, and finding a co-founder.
Once you find that co-founder, the next steps are funding, equity splits between founders, and building a team. You start tapping into networks, from day one.
Wrapping up
It is not going to be an easy journey
Now and then, you would get scared and have doubts about whether you’re on the right track or not. The easiest way to quell that anxiety is to set smaller milestones.
For example, set goals for 1 month, 2 months, 3 months, and so on. When you achieve these milestones, it boosts your confidence. If you miss a milestone by a margin, you can still assess how far off you are.
We too have missed a few milestones. For example, we aimed to raise a slightly larger round, but it didn’t happen after trying for about six months.
We decided to go for an angel round instead and made peace with that.
We believe our next four-year journey is going to be very, very excruciating but we are ready for it.
- Celebrated our first year with numerous happy customers, including a few Unicorns!
- Processed 10M+ transactions worth $50M+!
- Built a talented team of 15 driven professionals who trust and support each other.
But remember, we’re just getting started!
