Most startups are starting to include the use of AI into its business idea. Although there lies a great future ahead for the world of AI and its integration into the businesses, the complexities of it still continue to be the major pain point.
Tarun Tyagi founded Xaigi in 2021 to help in resolving this prevalent issue.
Xaigi is an AI consulting company that helps startups design and build AI business ideas. It identifies the problems faced by startups and helps navigate through the complexities of AI development and implementation. Through its consulting services it helps companies define and design its AI business idea, develop suitable solutions, and scale its technologies.
Tyagi, founder and CEO told Enrackr, “AI is coming almost as a revolution to the market. Going forward it is going to touch every sector.” Seeing potential in the kind of change AI can bring into the market, he decided to combine his experience working on technology platforms with his observation of the market.
Since the only steam of revenue for the company is its consulting services, it looks at a cash+equity business model. This means that they charge their clients a certain amount of cash and the rest is charged as equity.
By providing such a model, the company aligns its incentives with its client’s success, investing in its work for the longer run. This revenue model is mainly introduced as a cost effective way for startup clients to use the company’s services.
Further explaining the revenue model Tyagi said that the company doesn’t ask all its clients for equity. This is reserved solely for those companies that they work with for a long period of time and stick with them for the long run. The companies that come in from small fixes are not charged with equity.
Currently working with 3 startups on building its business, its services are focused in the European, Middle Eastern and North American markets.
Xaigi’s financial revenue for FY23 was $650K and it hit $350K in FY22. The company has a current run rate of $50K per month.
Claiming to see a revenue close of $1 million, Tyagi denies the need to raise funds. “We are bootstrapped and are running profitably right now. Even if we are looking at expansion, we don’t feel the need to raise funds as of now.” Tyagi said.
The Delhi-based company plans on expanding its business to focus on enterprises along with startups. It additionally looks to strengthen its sales team to scale up the business. Developing and launching its own products into the Indian market is a part of its expansion plans. These products will concentrate on resolving day to day problems faced by the manufacturing and agricultural industries in India.