Sramana Mitra: Are these people in your payroll the people who are doing the delivery? Ricky Joshi: It depends. Sramana Mitra: It sounds like a very expensive infrastructure. That’s what I’m struggling with. For a bootstrapped company, to roll out that kind of infrastructure is rather difficult. Help me reconcile. Ricky Joshi: We’re doing $25
Sramana Mitra: Let’s go back to that November 2006 time frame. You decided you were going to do an IoT platform. How did you get the company off the ground? Was it self-financed, bootstrapped, or did you raise money? How did you get going? What was the process of getting this started? Alicia Asin: We
Sramana Mitra: Let me see if I got everything. You did two companies after Compare..net One was SchemaLogic and the second was the one you sold to Intuit. Trevor Traina: Yes, as of 2006. Sramana Mitra: For both of them, you were Chairman, not CEO. Trevor Traina: Correct. Sramana Mitra: Were these your ideas or
Sramana Mitra: Absolutely. Tell me more about the business itself. First and foremost, who were the people involved when you got this off the ground? You mentioned your co-founder. Where did he come from? How did you meet him? Where do you know him from? Ricky Joshi: There are basically three co-founders of the company—myself,
Sramana Mitra: This is not unusual. First time entrepreneurs start with very vague ideas with what they’re going to do. When I started my first company, I was a graduate student at MIT and I wanted to be an entrepreneur but I didn’t have a good idea about what I was going to do. Can
Sramana Mitra: You were doing lead generation for online stores, but the revenue models changed. Trevor Traina: Correct. Instead of expecting the brands to pay us for consumer choice data, we let the retailers pay us for qualified leads. Sramana Mitra: That has become the standard business model for that part of the ecosystem—comparison shopping.
Sramana Mitra: Talk to me about the dysfunctions of the industry? Why does that industry warrant starting a new company? Ricky Joshi: You basically had four manufacturers who controlled 81% of the market. Majority of them were public companies. The average margins of manufacturers is around 40%. On top of that, you have distribution companies that
Spain, as you know, is in a terrible economic mess. Entrepreneurs like Alicia are vital to the country’s economic future. She has built a steady, cutting edge technology company with 60+ people from Zaragoza. Impressive! Sramana Mitra: Tell us about your beginning. Where were you born? Where did you grow up and in what kind