Currently, the company is generating 90% of its revenues from the US market. He is of the view that the funding will help Logic Fruit in fast-tracking its growth from 35% YoY to 50% YoY.
Logic Fruit is actively looking to raise investment to $5 million, highlighted Sanjeev Kumar, Co-founder & CEO, in an exclusive conversation with Electronics B2B. The company plans to use this investment to “accelerate” the development of solutions it is currently working on.
“Some part of the investment will also go to expand our sales team presence in the United States,” he said. Operational since 2012, the company says it is bootstrapped and has been growing 35% year-on-year for the last three years.
Kumar explained, “We closed last fiscal at a revenue of $6.5 million. Our order book for this fiscal will help us close at $9 million.”
90% Revenue From International Business
Currently, the company is generating 90% of its revenues from the US market. Kumar is hopeful that the amount raised will help it generate more revenue from the US after the sales team for the market is expanded.
“We only have four people in our sales team at the moment. About 80% of our 250 teams re dedicated to engineering and R&D,” Kumar pointed out. He added that clients from India are contributing only 10% of its total revenues.
However, that was not always the case. Logic Fruit’s initial years saw revenues from India jump to around 65%, but it stopped taking orders from most of the clients in the country because many wanted to get things done free of cost. Currently, the company works with ISRO, DRDO, IITs, and similar entities in India.
“The revenue that we generated from the US clients was being invested in India during the initial years. We have stopped that now,” Kumar explained.
He differentiates between US clients and Indian clients on how much time they provide for developing a new solution. According to him, clients from the US do not allow time for learning on the job as they want solutions “as soon as possible”. At the same time, Indian agencies are open to providing time for learning.
Kumar highlighted, “Business from India will increase with time. I think two or three years from now, India will contribute around 20% of our business. We will remain specific while signing any contracts with Indian clients.”
35% YoY to 50% YoY
Kumar believes that the funding will help Logic Fruit in fast-tracking its growth from 35% YoY to 50% YoY. Moreover, the company will also explore setting up manufacturing of its solutions.
“Right now, we have different EMS partners located both outside and inside India for fulfilling our manufacturing needs. We know manufacturing is important and are keenly following up on setting up the same,” he said.
Currently, the company does prototype manufacturing for defence, test & measurement, telecom, and the Semicon industry. Kumar added that Logic Fruit has also done small-scale manufacturing for some of its clients.
“Manufacturing requires a bigger investment than what we are currently seeking. The next step would be towards that,” he explained. AMD, Intel, Keysight, Lattice Semiconductor, ISRO, HAL, and more such clients that the company says it is actively dealing with.