Deskera chases unicorn status with its next big bet: becoming a super app

Singapore-headquartered Deskera is about to enter a new era with the imminent launch of a new app called Desk. Billed as a super app for small and medium-sized enterprises, Desk will allow business owners to run their core operations with just a mobile phone, company CEO Shashank Dixit tells Tech in Asia.

He says that starting a business in the city-state can take up to three months, describing how entrepreneurs need to register a legal entity, open a bank account, and rent office space. But with Desk, the entire process “can be done in one day,” thanks to its integration with banks, co-working spaces, and government bodies.

Photo credit: Deskera

The company is betting on Desk to spur new growth. Founded in 2008, Deskera provides cloud-based applications for enterprises. It targeted small businesses from the get-go by offering modular software – meaning customers only pay for features they need. Gradually, it launched more products that allow companies to maintain customer relationships and manage employees.

A holdover from an era where startup funding was scarce, Deskera expanded without raising much cash. Its annual revenue grew threefold between financial years 2014 and 2016, and more than doubled between financial years 2016 and 2017.

Because it helps business owners manage their core functions like paying taxes and custom duties, Deskera sees an annual churn rate – the proportion of customers that drop out after a time period – of less than 5%. This places it in the upper range among software-as-a-service firms, despite its products costing thousands of US dollars a year.

Deskera arrived slowly but furiously onto the fundraising circuit, announcing a US$60 million series A round a decade after its founding. DealStreetAsia reported in May this year that the funding round had since grown to US$100 million – news that Dixit declines to confirm.

The company is far from done as it’s now looking to raise a series B round. “It’s safe to say we’re now seeking a valuation in the unicorn range,” the CEO says, adding that it’s already received a term sheet that brings it close to that magic US$1 billion number.

The new app marks a departure from Deskera’s current focus on enterprise customers. While the company is used to long sales cycles, Desk, which will launch in Southeast Asia and India, will be available free of charge. Users, however, still have to pay for its web software.

While the company’s existing products are built for managers, Desk is for rank-and-file employees, too. Users of the app can chat with each other. Attendance-marking and geo-located check-in features can help employees keep tabs on team members. Businesses can even buy and sell products on an ecommerce marketplace, which is also available on the web.

But that’s not all. Desk will allow users to register a company, set up a bank account, and apply for business loans. They’ll also be able to file their taxes, access their income and balance sheet, and even read the news.

The battle of B2B super apps

Business owners in cities like Singapore or Hong Kong, however, might find the abundance of features bewildering. After all, many companies already have their own chat or human resources software, which means they have fewer reasons to adopt Desk.