It’s impertinent to meet legal obligations while starting a business. The most obvious consequence of following of compliances — reduce risk of fines, penalties, work stoppages, lawsuits or a shutdown of businesses.
There are numerous cases around where businesses were forcefully shutdowns by local authorities as they didn’t follow the compliances while setting up the company.
Indranil Choudhary, Siddharth Singh, Srinivas Kilambi and Samir Bedi People, all from legal background, who were of the opinion to meet the legal needs of businesses. In 2007, they launched a compliance consultant firm called Lexplosion.
Recently, they observed that keeping track of the vastly changing legal landscape becomes a challenge without the support of technology.
Keeping in mind the time consuming process a legal framework can be for a business, they thought of building an algorithm which would automate the entire process and reduce the extensive amount of time consumed in the process.
In 2012, the company launched its flagship software innovation Komrisk, a cloud-based compliance solution catering for large enterprises.
“Our goal has always been to use technology to make various aspects of law more accessible largely to the business community in India,” said Choudhary, Founder and CEO, Lexplosion.
Besides, the company has come up with various other software solutions like Komplify, which is a compliance management solution for medium and small enterprises.
The platform also has other solutions such as Komplitax and Komtrakt. Komtrakt is a contract management tool which has the potential to be used by both large and small enterprises. Komplitax is a GST invoicing and return filing software which caters to various sizes of business and can be integrated with various ERPs like SAP and Oracle.
Choudhary said that he will soon launch a fifth solution in the compliance space called Stataudit, which would help companies do their regulatory audit online with minimal intervention from the legal spectrum.
All of these are essentially SaaS solutions and businesses can subscribe to these on a monthly basis. The monthly subscription varies depending on the product and size and scale of their business.
While the larger section is the SaaS-based model there are also some generic consultation services which the company provides in terms of audit, assessment and advisory support.
The subscription of the solution varies between 100,000 a month to Rs 1000 a month for large enterprises and SMEs, respectively.
As per the last financial year, the company’s annual turnover clocked a little over $1 million and it hopes to take it to around $2 million by the end of this year.
“We have 100 clients from large enterprises and 40 from SMEs, which is likely increase significantly in the next five months,” claims Choudhary.
Pivot wasn’t easy
“In a B2B environment, your representable clients become very relevant; like any other business, while starting up we lacked a solid credential,” said Choudhary.
He added that Lexplosion was probably one of the first few companies which built a compliance software solution in India. “Creating a space for regulatory compliance in a business and further convincing clients to come on board for the same was a significant struggle.”
Big 4s are competition
“We have products ranging from different segments, so the competitors also are different in each of these spheres. Some of the Big 4s are fairly active in the large enterprise compliance space,” said Choudhary.
He added that in the contract management space, there are not too many Indian players but many global players are striving in this space. In the GST spectrum, there are a large number of competitors and they are all there in the public domain.
Innovation will continue
“We are going to innovate further with our existing range of products. GST gives us the opportunity to innovate for the next 3 to 4 years consistently as the landscape and market size becomes clearer. Even in compliance we plan to integrate our products with more features to make the process more user friendly and interactive,” said Choudhary.