Developed in 2020, this SaaS business is one of the fastest-growing and most profitable platforms in the Transport Management space. They have rapidly filled a large gap in the market for small-to-medium businesses struggling with global supply chains and as such have seen huge growth, exceeding $1M in annual recurring revenue (ARR) within 24 months of launch.
The software platform gathers intelligence from disparate logistics networks, analyzes transport options, and serves customers with optimal logistics strategies through its unique AI and easy-to-use interface. The result is a reduction in customers’ operating costs, improved shipment traceability, lowered carbon footprint, and enhanced customer satisfaction.
The business has grown rapidly since launch with ARR up 150% in the last 12 months. The app now has 23 customers with a combined ARR of $1.2M, an average revenue per account of $4,000, and full retention of all customers since launch. Customers sign up for a 12-month contract (paying monthly) giving strong MRR visibility and a minimum annual contract value of $40,000–$48,000. With 80% of the customer base now renewed for another 12 months (a 100% renewal rate), the customer lifetime value for the business stands at a significant $85,000–$96,000. The owner expects continued strong growth with a large pipeline of new customer prospects and targets an ARR of $2M (+100%) by year’s end.
The business is currently managed by one founder and a team of four full-time employees along with a full-stack developer, all of whom wish to stay with the business. The lean nature of operations means the business enjoys very strong margins of 60%, giving a new owner significant cash flow to plan for growth opportunities in business-to-consumer sales, growing the freight network, and expanding marketing activities.
Despite the success of the business, the owner is selling to care for a family member and because they cannot give the business the attention it needs to grow.
This business is currently under offer and therefore no longer available. Join the waiting list to be notified if it becomes available again
David is an internet entrepreneur with a passion for self-discovery, internet businesses, and mergers & acquisitions (M&A).
David worked for 4 years in M&A at Citigroup where he helped advise on deals in the tech, telecoms, and media sectors. Following his promotion, he left to join an internet business brokerage company as Head Of Brokerage & Operations.
In his 3 years in internet brokering, he personally advised on the sale of 75 businesses ranging from SaaS, to ecommerce and content and is the author of industry’s leading book on buying online businesses. He brings to Quiet Light a wealth of transaction execution experience across SaaS, ecommerce, and content businesses in the multi-million dollar range as well as a large network of buyer relationships.
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