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Mobstack

by Sharod and RaviLaunched 2010via Nathan Latka Podcast
MRR$25k/mo
Growthcontent marketing
Pricingsubscription
The Spark

Sharod and Ravi met in fifth grade and remained close through high school, undergrad, and even as roommates in New York. In 2010, they launched Mobstack as a mobile-focused company, generating less than $5,000 in their first year. They bootstrapped and experimented with different products in the mobile space for five years, growing modestly to about $250,000 in revenue by 2014 with a small team.

The Pivot

After observing that 90-93% of retail still happens offline despite e-commerce hype, they realized physical retailers had no way to leverage digital practices like retargeting and footfall analytics. In 2015, they pivoted to Beaconstack, a SaaS platform using Bluetooth beacon technology to enable proximity-based marketing. The insight was that customers needed a one-stop shop—rather than sourcing hardware from one vendor and software from another, Mobstack partnered with a Chinese OEM and built software on top to make it seamless.

Finding Product-Market Fit

Their pricing model proved clever: $49-$99/month for up to 10 beacons, then $5/beacon/month for additional ones, plus a one-time $22/beacon hardware cost (sold at near-cost with minimal margin). Within roughly two years of pivoting, they hit 100 customers generating $25,000 MRR. Their biggest win was Google India, which deployed over 2,000 beacons across 117 train stations to promote free Wi-Fi, sending Chrome browser notifications to waiting passengers.

What Worked

Content marketing became their growth engine, generating 450-500 business leads monthly with a 10-20% conversion rate into customers. They spent zero on paid acquisition. Their customer base ranged from mom-and-pop stores deploying 2-3 beacons to enterprises deploying 2,000+. They also got creative with guerrilla marketing—Sharod put a beacon in his car that sent notifications about Beaconstack, and a freelance artist customer got a $3,000 contract using a beacon at events.

Where They Are Now

With a 20-person team split between Bangalore and a one-person sales office in New York, they had raised $3.5M from Accel Partners (lead investor), Cisco (strategic), and angels. On track to hit $500k ARR by end of 2017, they focused solely on Beaconstack as their core revenue driver, with other products generating less than $5k/month. Sharod and Ravi still owned more than 50% of the company, with investors and a 12% employee stock option pool splitting the remainder.

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