Posted on Wednesday, Apr 21st 2021
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My conversation from 2014 with Gaurav Khandelwal, CEO of ChaiOne, became an interesting strategy discussion about a company doing substantial revenue based on services, had productized a piece of its services business that was also generating over a million in revenue.
Sramana: Gaurav, let’s go to the beginning of your story. Where were you born? What kind of background were you raised in? Gaurav Khandelwal: I was born in Kolkata, India. I came to the US for my undergrad. I grew up in a large city and I really wanted to experience something different, so I applied and went to school in a very small town in northern Indiana that was in an Amish community called Goshen College. Different universities come through India and interview students and applicants. That gives students a chance to meet with deans and hear about the schools. I met with several of them and this particular school was very interesting. They had a program that required every single student to spend a semester abroad to graduate. I had never heard of that before. I thought it was fantastic to know that every single student at that school had spent a semester in Indonesia, China, or some other country.
I felt that the culture and heritage at that school would be very rich. I really liked that so I decided to go to school there and study computer science. My parents did not pay for school, so I had to be enterprising and start businesses to pay for tuition. I did everything from selling kitchen knives to delivering pizza. Ultimately, I had a startup in my senior year of college which I was able to sell when I graduated.
Sramana: What timeframe was this? Gaurav Khandelwal: I was in school from 1997 to 2001. Sramana: What kind of business did you start that you almost ended up selling your senior year? Gaurav Khandelwal: When we were applying for jobs our senior year, we found that it was difficult and problematic to go to all of these different websites. Monster had just started, HotJobs and CareerBuilder were out there as well. There were a lot of job sites. Then, when you did all that, your information just dropped into a database and you might get a phone call, but you probably would not. We built a recruiting social network where anybody that had an interview with someone at Microsoft or IBM would then upload the recruiter’s name and in exchange they would get access to other recruiters’ contact information. In this manner, all students who were job hunting could populate the database with recruiter information, and that allowed students to reach out to recruiters directly instead of going to job sites.
We did that for students on our campus and the site grew very rapidly. However, for me to stay in the US, I had to get a job and get a visa. I could not pursue the business because of that. I had to sell the company. I made enough to pay off 4 years of debt.
Our conversation continues
here. This segment is a part in the series : Best of Bootstrapping . Bootstrapping to an Exit . Why is Bootstrapping Important? . How Can You Play this Low-Probability Game Intelligently? . Do NOT Go to VCs as Beggars - Go as Kings . Excess is NOT Required for Success . Bootstrap First and Raise Money Later . Some Bootstrapping to Exit Case Studies . The Buy Side of Bootstrapping to an Exit . Blitzscaling vs. Bootstrapping . Bootstrapping to Unicorns More »» . Cinedigm Acquires Bootstrapped 1Mby1M Company Future Today for $60 Million . Mailchimp Bootstraps to $600M Revenue . Bootstrapping from Arizona to $10 Million . Bootstrapped Basecamp Executes a No Nonsense Strategy . How Under30Experiences Bootstrapped to $5 Million . Bootstrapping with a Paycheck . How Algo.ai CEO Amjad Hussain Bootstrapped using Services from Michigan . Seed Investors Who Like Bootstrapped Businesses . How iHeartRaves CEO Bootstrapped a Niche e-Commerce Company to $20 Million . Bootstrapping with Services . How The Intern Group CEO David Lloyd Bootstrapped to $13 Million . How Passageways CEO Paroon Chadha Bootstrapped from Indiana . How SmartBuyGlasses CEO David Menning Bootstrapped to $50 Million . Death by Overfunding . How RainmakerForce CEO Mack Sundaram Bootstrapped Decisively to $5 Million+ . How FormAssembly CEO Bootstrapped a Virtual Company with a Paycheck . TimeSlips CEO Mitch Russo Bootstrapped to Exit with Sage . The VC-Entrepreneur Compensation Disbalance . BioConnect CEO Bootstraps with Sophisticated Strategic Maneuvering . Tremend CEO Marius Hanganu Bootstraps from Romania . Gesture CEO Jim Alvarez Bootstraps to $10 Million . SproutLoud CEO Bootstraps to $30 Million from Florida . Tuft & Needle CEO Bootstraps to Over $100 Million . Co-founders Bootstrap Linguamatics to Over $10M from the UK . Ownership Matters . Vainu Co-founder Mikko Honkanen Bootstraps from Finland . Entrepreneur Couple Bootstraps to $10M from Colorado . Power2Motivate CEO Bootstraps to $80M from Canada . Financial DNA CEO Bootstraps to $10M+ from Australia . Big Barker CEO Bootstraps a Niche E-commerce Brand . PrecisionLender CEO Bootstraps to Over $10M from North Carolina . Master Bootstrappers with Over $1B in Exits . Ultra Mobile Founder Bootstraps to Over $100 Million . Bootstrapping a Two-Sided Marketplace to $10M . Can You Bootstrap a Virtual Company to Over $5 Million? . Capital Efficient Entrepreneurs Turn $1M into $80M . Discussing the Journey Through Failure to Success . From a Small Town to $12 Million . Bootstrapping to Y Combinator and $10 Million Series A . Bootstrapping a Marketplace to Over $10 Million . Freightwise Bootstraps to $33 Million . Bootstraps First to $5M ARR, Raises $10M Later . Bootstraps in Europe, Raises Money and Goes Global in the US . English Major Bootstraps a Tech Company . Bootstraps with a Paycheck to $15M from Tennessee . Queue-It Bootstraps from Denmark to the US . Bootstrapping A Virtual Company To $25M . ActiveCampaign CEO Bootstraps Using Services to $40M . Alteryx Bootstrapped with Services to a Public Unicorn . Inspyrus Bootstraps Using Services to an Awesome Business Model . CEO Bootstraps Using Services to Millions from Russia . Wiredrive CEO Bootstraps Using Services to $10M . Scaling to Over $10M by Bootstrapping Using Services . Bootstraps Using Services from Poland to a US SaaS Company . ButcherBox CEO Bootstraps a Perishable Meat Business to Significant Scale . Waveform CEO Bootstraps to $8M . Bootstrapped Entrepreneurship from Estonia . From Laid-off Engineer to Successful Startup CEO . Imagine Easy Solutions CEO Bootstraps to Exit . BannerBuzz CEO Bootstraps to $35M . Bootstrapping a Virtual Company to Scale . Bootstrapping Using Services from Wisconsin . Best Tactic for B2B Startups . Bootstrapping by Piggybacking from Romania . Bootstrap First, Then Scale with VC Funds . Bootstrap to +$10M First, Raise Money Later . Madwire CEO Bootstrapped First, Raised Money Later to $120M . Bootstrap Using Services First, Raise Money Later . Wonderful Bootstrap with a Paycheck Story . RushOrderTees CEO Bootstraps to $23M . Bootstrapping with Freemium and Free Trials to $13M . Bootstrapping, Pivoting, Gaining Liquidity, Scaling to $100M+ . Bootstrapping with Affiliate Marketing . Bootstrap to Exit, Bootstrap Again, Then Raise VC Money . Bootstrapping Using Services to $12M . Bootstrapping an Ad Tech Company from Paris . Bootstrapping a 100% Virtual Company from Ireland . MiQ CEO Bootstraps with Services from London . Bootstrapping to $8M During the Covid Crisis . Bootstrapping a Marketplace from Brazil . Bootstrapping Using Services from Sweden . What Should Startups Do To Raise Seed Capital in 2021? . EdTech Unicorn Bootstrapped First from Canada . Coalition Technologies Co-founders Bootstrap to $10M . Bootstrapping a Virtual Company to $10M from Atlanta . Bootstrapping a SaaS Company with a Paycheck and Scaling . Bootstrapping with Services to $20 Million . Onit CEO Bootstraps First, Raises Money Later . Pura Vida Founders Bootstrap to $130M . Lawline CEO Bootstraps to $10M . Bootstrapping a Technology Product Company from India . Codesigned CEO Bootstraps Using Services . Rukkus CEO Follows Bootstrap First, Raise Money Later Strategy . Bootstrapping and Managing a Successful Pivot . Ukrainian Entrepreneur Bootstraps to Global Scale . Bootstrapping a Niche E-Commerce Venture . Bootstrapping Planon to $100M from The Netherlands . Co-founder Bootstrapped with a Paycheck from Indiana . Bootstrapping an Education Company . Bootstrapping an IoT Company from North Carolina . Serial Bootstrapper Bootstraps to $27M . Bootstrapping Identity Automation Using Services from Houston . Bootstrapping ProjectManager.com from NZ, Scaling in the US . Bootstrapping to $15M in Three Years . Peruvian Entrepreneur Bootstraps to $200M . JotForm Founder Bootstrapped with a Paycheck . WeGoLook was Bootstrapped from Oklahoma . Bootstrapping AutoClaims Direct to $15M . Meltwater Founder Bootstrapped to $200M . Bootstrapping to $20M From London . Synechron CEO Bootstrapped to $300M . Unique Vintage was Bootstrapped with a Paycheck . Toptal CEO Bootstraps a Virtual Company to Scale . Bootstrapping to $45M from Chicago . Vacasa Co-founder Bootstrapped to $100M . Bootstrapping Infinitely Virtual All The Way . Bootstrapping to Exit Discussion with David Lambert, Right Side Capital Management . Bootstrapping a Healthcare IT Company to $100M . Discussing Seed Rounds with Cindy Padnos, Illuminate Ventures . Auction.com Bootstrapped to $180M in Online Real Estate . Discussing the Silicon Valley – India Corridor with Naren Gupta of Nexus Venture Partners . Bootstrapped with a Paycheck to Techstars and Acquisition . Discussing People vs. Market with Jon Staenberg, Staenberg Venture Partners . Bootstrapping a Highly Profitable Company in Social Media Marketing . Discussing Investments in Indian Startups with Anand Daniel, Accel Partners . Bootstrapping an Evergreen Business from Oregon . Discussing Startups in Africa with Osayi Igharo, Ripple VC . Investing in Concept Stage Startups with Matt Holleran, Cloud Apps Capital Partners . Serial Entrepreneur Bootstrapped Two Startups to Huge Revenue . Discussing Investment Strategy With Deepak Jeevankumar, Dell Technologies Capital . Bootstrapping Hotelplanner.com to $20M with Intelligent Financial Engineering . Discussing Investing Across Sectors in India with Swapna Gupta, Qualcomm Ventures . Bootstrapping Cleverbridge From Germany . Discussing Open Opportunities with Hemant Mohapatra, Lightspeed Venture Partners . Bootstrapping E-commerce Company Fun.com . Discussing Seed Rounds with Bruce Cleveland, Wildcat Venture Partners . From Friends and Family Funding to $30M Exit . Discussing the Evolution of the Indian Startup Industry with Sasha Mirchandani, Kae Capital . Lean Company Bootstraps to $7M . Saatva Co-founder Bootstrapped a $25M E-Commerce Company . Looking at Terms with Heidi Roizen of Threshold Ventures . ADDA Co-founder CEO Bootstrapped with a Paycheck in India . Duda Co-founders Bootstrap with Paychecks . The Importance of Building Value with Shomit Ghose, Onset Ventures . Get Real Health Founder Bootstrapped Using Services . Bootstrapping Unique Vintage Using a Paycheck . Discussing E-commerce Startup Trends with Daniel Gulati, Forecast Fund . Bootstrapping a Digital Startup with a Paycheck . Discussing Seed Stages with Amir Banifatemi of K5 Ventures . Bootstrapping Avelead Using Services from Atlanta . Founder Bootstrapped a Big Data Company Using Services . Discussing Future Unicorns with Warren Weiss, Foundation Capital . Founder Bootstrapped Axosoft with a Paycheck . Raised a Series A with $10 Million in the Bank . 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Co-founder Bootstrapped a SaaS Company in India . Bootstrapped MindTouch to $12M+ and Exit . Mobiliya Technologies was Bootstrapped Using Services . What Traditional VCs are Looking for with Scott Sandell, NEA . Bootstrapped Srishti Software Applications with Services from India . How Robust SaaS Company RateGain was Bootstrapped from India . Bootstrapped eGroup to $20M in Charleston, South Carolina . Gravitant CEO Bootstrapped Using Services to $15M in Venture Capital