From Failed Software to $10M ARR: The Success Story of Kinetik
This article is a summary of a YouTube video "360: Kinetik: From Failed Software to a $10M ARR SaaS Company" by SaaS Club
TLDR Kinetik aims to solve the scheduling nightmare in the non-emergency medical transportation industry by providing a revenue cycle management platform that reduces billing time and improves payment speed, and despite facing challenges during the COVID-19 pandemic, the company pivoted and expanded their product to target a larger market, becoming one of the biggest tech companies in their industry.
Industry Disruption and Growth
Kinetic aims to solve the scheduling nightmare in the non-emergency medical transportation industry, which sees approximately 400 million rides per year across 20,000 transport providers employing half a million drivers.
Kinetik has achieved impressive growth, approaching eight figures in ARR and employing about 100 people across three countries.
The speaker spent 12 months driving for a local transport company to understand the healthcare industry and identified a white space for innovative products in the broken revenue cycle side of healthcare.
Kinetik's revenue cycle management platform was able to reduce the time it takes to complete medical billing from 40 hours to just 30 minutes, and the time it takes to get paid from 60 days to 21 days.
Kinetik's approach of being a pure tech company in a field dominated by service providers was a unique and disruptive move.
Winning a multi-year eight-figure contract with industry players advocating for their technology without even knowing it expedited Kinetik's growth and changed everything for the company.
"You basically went in and disrupted the whole thing and it acts today like we weren't gonna sell to health funds until 2025."
Adaptability and Market Expansion
Despite facing challenges during the COVID-19 pandemic, Kinetik chose to pivot and expand their vision, seizing the opportunity to target the entire market for scheduling and payments.
The impact of COVID-19 initially made it difficult to sell the product and led to customer losses, but as the pandemic subsided, Kinetik's numbers "ballooned up," highlighting the resilience and adaptability of the company.
The company made a hard pivot during the pandemic and expanded their product to target a larger market, resulting in a three billion dollar market opportunity.
The COVID-19 pandemic forced the company to take bold actions and go after a bigger market share, leading them to become one of the biggest tech companies in their industry.
Constantly pivot and listen to the market, understanding how the world works and how money flows, in order to adapt and scale your business without giving up.
Overcoming Challenges and Persistence
Despite the high cost, Kinetik's founder personally traveled to rural areas in America to find customers through word of mouth, demonstrating the dedication and determination required to build a successful business.
The founder's vision of providing timely healthcare services to Medicaid patients, despite the corrupt market, kept them motivated to overcome challenges and make a difference.
Building a product may seem easy on the surface, but understanding customer usage and adoption requires a deeper understanding of nuances and cannot be figured out in just a few days of talking to customers.
Despite being initially rejected by a health plan, Kinetik eventually became their technology partner, highlighting the importance of persistence and building a strong reputation in the industry.