Pricing Model
SaaS + Transactions Pricing
| Company Size |
Platform Fee (Annual - Per Brand Onboarded) |
Usage Based Cost (Per Sample) |
| Enterprise |
₹ 1500000 |
₹ 80 |
| Mid-Size |
₹ 750000 |
₹ 80 |
| Small |
₹ 200000 |
₹ 80 |
Pricing Strategy
Intuition : Pricing model must align with the product, persona, packaging, channel that a company is selling to.
- Enterprise customers value extensive customization and greater platform usage.
- For them the need for integration, bespoke workflows, advanced analytics, and dedicated support outweighs pure usage costs.
- As a result, pricing models shift toward platform fees, customization charges, and value-based contracts, where the total cost reflects the complexity and depth of the solution rather than just the volume of usage
- Usage based pricing is preferred by Mid-Market and Small FMCGs with limited budgets, looking to pay only for what they use, thus controlling costs and reducing barriers to adoption.
- Sources
Revenue Model
FreeStand in its current operations is focusing only on Enterprise FMCG customers with -
-
Enterprise Average Revenue Per User (ARPU - Annual Basis): ₹70 Lakh (~$82,000)
-
Current Customers: 4 active FMCG enterprises
-
Annual Revenue (Year 1):
4 customers × $82,000 = $328,000
-
Enterprise Customer Growth (YoY): 400%
- Year 2 customers: 4 × (1 + 400%) = 20 customers
-
Enterprise Churn Rate: 10% annually