One business has chosen a different path in the fast-paced world of startups, where explosive growth and hefty venture capital investments have long been the standard. Data operations platform Nexla has surprised expectations by emphasizing moderate and steady expansion. This strategy has not only helped them become cash-flow positive early on, but it has also put them in a good position as investors favor efficiency over growth more and more. Nexla is celebrating a $18 million investment today, which is evidence of the effectiveness of their original approach.
Founded by Saket Saurabh, Nexla entered the market in 2017 with their data operations platform, initially aimed at managing and processing data. At that time, building applications on top of data was a relatively new concept. However, as the machine learning market matured, Nexla evolved alongside it, enabling customers to build applications based on the data they managed.
Saurabh, the CEO of Nexla, made a conscious decision to grow the company differently from the typical startup model. While many startups were burning through large amounts of venture capital, Nexla focused on generating cash flow. This decision proved to be a wise one, as it allowed them to achieve cash-flow positive status earlier than most startups.
As Nexla continued to refine its platform, they realized that the true value lay in putting the data inside their software to work. This realization led to the development of the concept of data products, which became a central focus for the company. Data products enable users to integrate, share, and collaborate on data within the Nexla platform.
Recognizing the importance of data products, Nexla recently launched an internal marketplace where employees can discover and make use of these valuable assets. This organized approach to distributing data products further enhances Nexla’s offerings, providing a seamless experience for their customers.
Nexla’s success can be attributed, in part, to its impressive customer base. With big-name customers such as DoorDash, Johnson & Johnson, LinkedIn, and American Express, Nexla has established its presence in the market. This strong customer base, combined with the company’s focus on slow and steady growth, has contributed to their ability to attain cash-flow positive status and attract investors.
The company has experienced steady growth, expanding its team to nearly 100 employees. Looking ahead, Nexla plans to continue hiring and aims to reach 150 employees within the next eight to nine months. This growth is fueled by the demand for their innovative data operations platform and the increasing recognition of the value they provide to their customers.
One of the key benefits of Nexla’s approach to work is the flexibility it offers in terms of remote and hybrid work. This flexibility has enabled Nexla to create a more diverse employee base, both in terms of geography and background. Saurabh notes that this approach has significantly improved both gender diversity and general background diversity within the company. By embracing remote work, Nexla has been able to tap into a global talent pool, fostering a rich and diverse workforce.
Nexla’s commitment to slow and steady growth paid off when they recently secured an $18 million investment. The investment was led by Shield Capital, with participation from existing investors Blumberg Capital, Engineering Capital, Storm Ventures, Industry Ventures, and Liberty Global. This oversubscribed round of funding highlights the confidence investors have in Nexla’s unique approach and the value they bring to the market.
Under the terms of the agreement, Shield Capital partner Mike Brown will be joining the Nexla board. This partnership will further strengthen Nexla’s position and provide valuable expertise and guidance as they continue to grow and innovate.
With a solid foundation and a growing customer base, Nexla is well-positioned for future success. Their focus on slow and steady growth, along with their innovative data operations platform, sets them apart from other startups in the industry. As the demand for data-driven applications continues to rise, Nexla’s ability to deliver valuable data products will be crucial.
As the world evolves, so too does the startup landscape. Nexla’s success demonstrates that there is more than one path to growth and prosperity. By prioritizing efficiency, embracing the power of data products, and fostering a diverse and inclusive workforce, Nexla has proven that slow and steady can win the race in the competitive world of startups.
Q: What is Nexla? A: Nexla is a data operations platform that helps customers manage, process, and build applications based on their data.
Q: How does Nexla differ from other startups? A: Nexla stands out from other startups by prioritizing slow and steady growth, attaining cash-flow positive status early on, and focusing on efficiency rather than rapid expansion.
Q: What are data products? A: Data products are a central focus for Nexla. They enable users to integrate, share, and collaborate on data within the Nexla platform, providing valuable insights and enabling the development of data-driven applications.
Q: Who are some of Nexla’s customers? A: Nexla boasts an impressive customer base, including companies such as DoorDash, Johnson & Johnson, LinkedIn, and American Express.
Q: How has Nexla created a diverse workforce? A: By embracing remote and hybrid work, Nexla has been able to attract talent from around the world, improving both gender diversity and general background diversity within the company.
Q: What is the significance of the $18 million investment? A: The $18 million investment, led by Shield Capital, demonstrates investor confidence in Nexla’s unique approach and the value they bring to the market. It will further support Nexla’s growth and innovation.
First reported by TechCrunch.