The Challenge: Scaling in a Fragmented Market About Hafla
Scaling a startup in a fragmented market presents unique challenges, and Hafla experienced these obstacles firsthand. With countless vendors, varying prices, and limited visibility, organizing events had become a cumbersome process for both event organizers and attendees. Hafla recognized the need for a comprehensive platform that would address these pain points and provide an enhanced user experience.
Capital for Growth Without Compromising Equity Ownership
Hafla seized this opportunity and quickly onboarded with erad, completing the process within an impressive 18-hour timeframe. This rapid onboarding allowed Hafla to access the much-needed funding swiftly, expediting their growth plans.
"A major factor that impressed us was the speed of initial progress with erad. When you move fast the client feels confident that you know what you are doing. It's the same in our industry as well. We have a lot of focus on "Smart.Fast.Awesome" behavior within Hafla. It's good to see "fast" from someone else as well. It reconfirms our belief that fast wins." - Vaibhav Doshi, Founder and CEO.
Data-Driven Decisions and Optimization
Leveraging erad's platform, Hafla streamlined operations by connecting sales, marketing, and accounting data. This empowered data-driven decisions and optimized their strategies.
Leveraging Funds for Enhanced Market Visibility
Hafla utilized the funds provided by erad primarily for marketing initiatives, which played a pivotal role in enhancing their market visibility. They allocated a significant portion of the funds towards targeted advertising campaigns across various digital platforms, aiming to reach a broader audience of potential customers. These campaigns showcased Hafla's comprehensive event planning platform and highlighted its unique features and benefits, resulting in increased brand recognition and customer acquisition. Hafla experienced impressive growth, achieving a significant 20% increase in overall revenue. But that is not all, they also focused on hiring a business development team to increase visibility in the corporate segment and used the funds as working capital for large orders from big corporations and government entities.
"The funding from erad was deployed for a) hiring business development team members to increase visibility in the corporate segment and b) working capital for large orders for big corporations and government. Entities with a 45-60 day payment cycle but no revenue risk (e.g. Large Family Conglomerates, Large MNCs, Government Entities) The combination of the business development team and building a powerful client list further powered our growth in the high value segments." - Vaibhav Doshi, Founder and CEO.
Maximizing Average Order Value
With erad's support, Hafla boosted average order value by 15%. They targeted higher-value event types and focused on venue and catering segments. They also built an in-house team of event planners.
"We felt that the team at erad took a strong interest in understanding our business. They also realised that Hafla's business is a mix of online and offline and helped find ways of understanding the full revenue potential. The flexibility from erad gave us the confidence that this is a partner who understands our business and needs." - Vaibhav Doshi, Founder and CEO.
Considering the factors mentioned, Hafla decided to apply for a second facility with erad. The decision was influenced by factors such as speed, reduced and competitive rates, and a seamless past experience. The second facility strengthens Hafla's working capital, enabling them to pursue larger deals and fund big opportunities. This decision aligns with Hafla's plan to reach a $1000 average event value (AEV) in the coming months.
Overall, by strategically allocating funding from erad, Hafla was able to invest in marketing efforts to enhance their market visibility and implement strategies to maximize their average order value. These initiatives played a crucial role in driving remarkable growth for Hafla and solidifying their position as an innovative player in the event planning industry.