Episodes
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Summary
In this episode, we are joined by Per Sjöfors, also known as "The Price Whisperer," who discusses the pivotal role that pricing plays in business profitability. Per explains that pricing has the highest leverage on profitability, exemplified by his "1% challenge," which shows that a mere 1% increase in price can lead to an 11.3% increase in profit. With over 15 years of experience in pricing strategy, Per has worked with companies across various industries, refining their approaches to maximize profitability. Per emphasizes the importance of understanding cultural differences in pricing and the necessity for companies to adapt their strategies when entering new markets. He discusses his book, "The Price Whisperer," which aims to educate people on the science of pricing and provide practical insights that go beyond academic theories. During our conversation, Per highlights common pricing mistakes, such as the reliance on cost-plus pricing and ignoring market segmentation. He explains that true pricing power comes from differentiation and the ability to increase prices without losing sales volume. Per stresses the importance of leveraging consumer perception and effective marketing strategies to create this pricing power. He also discusses the process of finding the right price for a product, which involves conducting thorough pricing research and understanding the various factors that influence pricing decisions. Per advocates for a holistic approach to pricing that encompasses the entire company, suggesting that a dedicated pricing function should guide marketing, product development, and price presentation. Looking towards the future, Per shares insights on dynamic pricing and the significance of understanding buyer behavior and psychology. He calls for businesses to move away from flawed pricing strategies, such as cost-plus or competitor-based pricing, and to focus on delivering value to customers through strategic differentiation.
Takeaways
- Pricing has the highest leverage on profitability, and a 1% increase in price can lead to an 11.3% increase in profit.
- Understanding cultural differences is crucial when it comes to pricing and entering new markets.
- Common pricing mistakes include relying on cost-plus pricing, not considering market segmentation, and viewing the market as homogeneous.
- Pricing power comes from differentiation and the ability to increase prices without losing sales volume.
- Leveraging consumer perception and marketing strategies can significantly impact pricing.
- Finding the right price involves conducting pricing research and considering various factors that influence pricing decisions. Move away from flawed pricing strategies and focus on differentiation and delivering value to customers.
- Price sets expectations and can influence customer satisfaction.
- Establish a dedicated pricing function within the company to guide pricing decisions, marketing, and product development.
- Understand buyer behavior and psychology to make informed pricing decisions.
- Consider the potential impact of dynamic pricing and the importance of price presentation.
- The future of pricing may involve advancements in technology such as AI and data analytics.
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Quotes
“Pricing is not art. It's really science.”
“Pricing has the highest leverage on profitability.”
“For the average company, if you can increase sales volume with 1%, profit goes up 3.5%, because cost also goes up. If you can reduce your cost with 1%, profitability goes up 5.5%. But if you can increase your price or decrease your discounting, which of course is the same thing with 1%, profit goes up wit
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Murali Sundararajan, a seasoned procurement leader, shares his extensive experience and insights in the field of procurement. Initially transitioning from an engineering background, Murali faced challenges that emphasized the importance of technical knowledge and strategic thinking in procurement. He highlights the transformation of procurement over the past two decades from a transactional function to a specialized, technology-driven aspect of business that significantly impacts cost management, process efficiency, and overall value addition.
Murali discusses the essential elements of procurement including sourcing, supply chain management, and vendor management, underscoring the need for a robust team led by a skilled head of procurement. Key traits for procurement professionals, as Murali notes, include communication skills, passion, technical expertise, and negotiation capabilities. He outlines annual goals for a procurement team which focus on cost reduction, process enhancement, team development, and aligning with business objectives.
Effective sourcing practices, according to Murali, involve networking, thorough research, and leveraging technology to identify and evaluate potential suppliers. He delves into risk management during vendor selection, addressing geopolitical, financial, and logistical considerations. The procurement process itself, as described by Murali, involves an RFI to gather initial data, followed by RFPs and RFQs to finalize supplier selection, emphasizing the importance of detailed contractual requirements and competitive pricing strategies.
Murali also touches on the significance of involving the procurement team early in the purchase process to optimize value and minimize risks. He discusses advanced topics such as the impact of automation, AI, and RPA on the future of procurement, and offers career advice for aspiring leaders in the field, reflecting on his own professional journey and the dynamic nature of procurement.
Takeaways
Procurement plays a strategic role in reducing costs, improving processes, and bringing value to the company.Sourcing involves identifying the right partners, integrating technology, and reducing costs through automation.Supply chain management encompasses logistics, overseeing, and delivery of goods and services.Vendor management involves developing and empowering suppliers, promoting sustainability, and reducing costs.Hiring an experienced head of procurement is crucial to create a strong procurement team and develop a strategic procurement culture.Startups should prioritize hiring a procurement expert early on to avoid future challenges and ensure compliance. Procurement has shifted from a transactional approach to a specialized and technology-driven function.When hiring for procurement, consider communication skills, passion, technical expertise, and negotiation skills.Yearly goals for a procurement team should include cost reduction, process improvement, team member development, and meeting business unit goals. -
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Sanjay Jain, a CFO with over 20 years of experience in the media industry, shares his career journey and insights. Starting in finance after completing his CA, Sanjay worked across various sectors before focusing on media. Sanjay discusses the evolution of the media industry, from traditional cable and satellite TV to the rise of OTT platforms. He also talks about the challenges and opportunities in the industry, including the need for content discovery and the impact of regulations. Sanjay emphasizes the importance of leadership, continuous learning, and adding value in the finance function. He reflects on his roles at NDTV Imagine and Aaj Tak, including experiences with their IPOs and the specific challenges news channels face. He discusses the importance of having a good track record and a credible plan before going public. Jain also talks about the NDTV Imagine saga and the lessons learned from it. He emphasizes the significance of strategy in business and the unpredictable nature of content success. In retirement, Jain pursues passions like stock market investing and angel investments, measuring success by happiness and peace.
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Takeaways
- The media industry has undergone significant changes, from traditional cable and satellite TV to the rise of OTT platforms.
- Leadership in the finance function involves backing your team, having a vision, and collaborating with other functions.
- The role of a CFO has evolved from being a controller and accountant to a strategic advisor who adds value across functions.
- Moving between industries is possible at a mid-level, but at senior positions, industry knowledge becomes more important.
- The CFO role allows for interaction with peers, insight into the company's growth, and the ability to influence decisions.
- Successful CFOs should be team players, have a desire to learn the business, and listen more than they speak.
- The IPO of Aaj Tak was a significant event in Sanjay's career, and he played a role in the company's growth and success. Having a good track record and a credible plan is essential before going public.
- The media industry is unpredictable, and success in content creation is often a matter of gut feeling.
- Retirement should be a time to focus on passions and find happiness and peace.
- Investing in the stock market requires careful observation and patience.
- Angel investments should be made with money that can be written off and should consider the founders' passion and knowledge.
- Success should be defined by happiness and peace, rather than just wealth.
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Quotes
"The media industry had been bleeding
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In this episode, Peter Walker, Head of Insights at Carta, discusses his journey in the startup world and the role of data in his career. He shares insights on the challenges and trends in implementing analytics at scale. He also provides an overview of the funding landscape and the impact of the pandemic on fundraising. The conversation explores the impact of changing interest rates on startup funding and the challenges faced by startups in the current market. It discusses the decline in seed funding compared to series D funding, the need for capital in late-stage rounds, and the shift in fundraising dynamics. The conversation also touches on the liquidity of equity for startup employees, the decrease in startup hiring, and the changes in startup compensation. The guest shares insights on leadership, success, and advice for emerging professionals.
Takeaways
- Startups can leverage data to make informed decisions and improve their operations.
- Data storytelling is a powerful tool for communicating insights and making data more accessible.
- The implementation of analytics at scale requires data cleaning, understanding the audience, and integrating different databases.
- The funding landscape for startups has been challenging, with a decline in fundraising in recent years.
- The impact of the pandemic has varied across different stages of a company's life cycle.
- Changing interest rates have had a significant impact on startup funding, with seed funding down compared to series D funding.
- Late-stage rounds require massive amounts of capital, and the decline in late-stage funding raises concerns about where the money will go.
- Startup employees are facing challenges in accessing liquidity for their equity, leading to a decrease in exercise rates.
- The startup job market has seen a decrease in hiring and an increase in shutdowns.
- Startup compensation has undergone significant changes, with equity compensation decreasing and salary compensation remaining relatively flat.
- Leadership can be demonstrated at any level within a company, and energy and consistency are important qualities for leaders.
- Startups should consider starting fundraising earlier than expected and focus on making every dollar last longer.
- The guest's goal is to make Carta data ubiquitous and be the single source of truth for startup data.
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Quotes
“Energy is contagious.”
“The funding winter is thawing, but is still rather chilly.”
“Things are a lot harder than they appear on the surface.”
“A lot of marketers do themselves a disservice by not understanding data as much as they should.”
“The cap table is a record of who owns what percentage of a company.”
“A lot of B2B companies can actually use this as a new form of marketing. It's data content that educates your audience about the world and the market that they're in.”
“Insight is a piece of information that's going to help you make a decision.”
“Always on I think is it sounds good real time, but it isn't always necessary.”
“Industry, time, location, these are all very clear and obvious filters to put into your data that kind of expose and kind of tease out differences between parts of your data set.”
“I come in
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In this conversation, Reba Cox delves into her extensive journey in the procurement field, transitioning from trading base metals to procuring them, and ultimately stepping into tech procurement. She begins by highlighting the fundamental skills and mindset essential for success in procurement, such as the importance of demand planning, establishing baseline prices for savings, and the critical role of building strong relationships with stakeholders.
Reba distinguishes between direct and indirect procurement, outlining the unique challenges and strategies each entails, particularly in managing software contracts. She emphasizes the necessity of understanding and planning for demand, alongside the crucial task of setting baseline prices to secure savings.
Further, Reba touches on the broader role of procurement within both manufacturing and tech industries, underscoring its strategic placement under operations in manufacturing firms and under the CFO in tech companies.
Additionally, Reba highlights the focus on security and scalability, especially in tech procurement, reflecting on the significance of these elements in today's industry. She also discusses the evolution of procurement tools and their value in facilitating the work of different teams, advocating for the integration of new technologies to streamline processes.
Moreover, Reba speaks to the personal side of her career, sharing insights on building a positive reputation, transitioning from a gatekeeper mindset to one that's more collaborative and aligned with business goals. She offers career advice and shares her ambitions, looking towards the future of procurement with an eye on innovation and efficiency.
Reba concludes by emphasizing the need for the procurement function to evolve alongside the industry, incorporating more advanced tools and strategies to address the complex challenges of today's business environment. This includes a strong focus on security, scalability, and aligning procurement strategy with the overarching goals of the organization, highlighting the transformative potential of procurement in both manufacturing and tech sectors.
Takeaways
* Procurement involves managing contracts, spend, and vendor relationships for a company's non-salary expenses.
* Building relationships with stakeholders and understanding their needs is crucial for procurement success.
* Demand planning and setting baseline prices are important strategies for achieving savings in procurement.
* In tech procurement, security and scalability are key considerations, while in manufacturing, savings and project-based initiatives take precedence.
* Managing software contracts requires careful negotiation, demand planning, and consideration of non-financial elements such as SLAs and security measures.
* Procurement is best placed under operations in manufacturing and under the CFO in tech companies.
* The lack of comprehensive tools is a major challenge in procurement.
* Automation and AI are key technologies that will transform procurement processes.
* Supplier collaboration and relationship building are critical in manufacturing, while in tech, procurement is often brought in only when something goes wrong.
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Quotes
“Procurement, by nature, is a function of functions.”
“Procurement is sales without the quota.”
“The more you absorb, especially when you're younger in your career, the more you'll be able to understand and piece things together.”
“The best thing to do when you come in is just absorb, ask questions, learn about other functions because your job as procurement is to ma
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In this conversation, Alex Small shares his background and journey in the finance and tech industry. He discusses his professional role from being a systems administrator to Head of Strategy and the importance of systems thinking in finance. Alex also talks about his experience at Zendesk and ClickUp, highlighting their positioning in the market. He explores the trade-off between profitability and growth in SaaS businesses and the key metrics to track in the industry. This part of the conversation covers key metrics for understanding business performance, and the comparison between SaaS and Payment's transaction-based business models. Further, in the Masterclass on Strategy, Alex discusses the role of strategy in business, differentiating good strategy from bad strategy, the challenges and considerations of strategy, the influence of data and technology on strategy, building a strategy team, the importance of internal mobility, and managing multiple roles and businesses. Additionally, Alex discusses the importance of professional relationships, the need to eliminate distractions and focus on tasks, his definition of success, his approach to leadership, and his perspective on career regrets.
Takeaways
- Systems thinking is crucial in finance to understand the interconnections between different aspects of a business.
- Promotions and success in a career often require a combination of hard work, competitive advantage, and strong relationships with business partners.
- Positioning in the market is essential for companies to differentiate themselves and find their niche.
- SaaS businesses face the challenge of balancing profitability and growth, with many prioritizing growth to stay competitive.
- CAC payback is a critical metric in SaaS, indicating how long it takes to recoup the cost of acquiring a customer. Key metrics for understanding business performance include customer lifetime value, CAC payback, and the ratio of customer lifetime value to CAC payback.
- SaaS and transaction-based business models have their own advantages and challenges, with SaaS offering strong margins and transaction-based models having a larger total addressable market (TAM).
- Strategy should connect operations or finance to strategy, and it is important for all teams to be strategic, not just those with 'strategy' in their title.
- Good strategy is comprehensive, actionable, and communicable, and it should accomplish something for the business.
- Data and technology play a crucial role in shaping strategy by providing competitive research and enabling benchmarking and analysis.
- When building a strategy team, consider internal mobility and the need for diverse perspectives and deep strategic experience.
- Internal mobility helps increase tenure and allows for iterative learning and growth within the company.
- Capabilities for a strategy team include a deep understanding of the business, the ability to connect different areas of strategy, and the skills to leverage data and technology effectively.
- Managing multiple roles and businesses requires prioritization, passion, and the ability to focus and work efficiently.
- Building great relationships is crucial for success in business and can lead to valuable partnerships and opportunities.
- Eliminating distractions and maintaining focus is key to productivity and achieving goals.
- Effective leadership involves building strong relationships based on trust, respect, and accountability.
Chapters
Introduction and Background
Journey and Key Milestones
Role as a Systems Administrator
Promotions and Success Factors
Positioning of Zendesk
Positioning of ClickUp
Profitability vs Growth
SaaS Metrics
Key Metrics for Understanding Business Performance
Comparing Saa
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Priya shares her journey from being an engineer to becoming a founder and the challenges she faced along the way. She discusses the importance of partnerships and the role of risk-based pricing in the lending industry. Priya also talks about the evolution of ZestMoney's product and strategy, and how they stayed focused amidst various opportunities. She emphasizes the need to remain true to the company's vision and make decisions quickly. Priya also shares her approach to the CFO and COO roles and the importance of creating and growing functional departments. In this part of the conversation, Priya discusses the roles and responsibilities of a CEO and CFO, the importance of hiring for roles and evaluating functions, balancing short-term fires and long-term vision, maintaining and evolving company culture, advice for founding a startup, key successes and lessons learned at ZestMoney, crucial lessons for fintech startups, diversity and inclusion at Zest Money, making tough decisions in challenging times, and what motivates Priya to keep going.
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Quotes“Finance is all about allocation of money.”
“Fire fighting is part of the game.”
“Whatever doesn't kill you makes you stronger.”
“If I look at Zest, then obviously we had the idea and we had the concept and we were the initial sort of seed behind it, but then whatever it became later on and a lot of the success, it was a team effort.“
“Investment banking… it's a different mindset. And I just thought that being on the company side would be more creative.”
“I had so much conviction on it… that was the biggest pull that then trumped every pros and cons list and everything… I couldn't get rid of that concept in my head.”
“The difference between developed markets and developing markets is that developed markets are more efficient at allocation of money and developing markets are less efficient at allocation of money.”
“As a founder... keep the decision making fast. Don't dwell on it too much, or say yes or no quickly.”
“Everything sort of lags behind always a little bit in startups. I don't think anyone can say that, they're completely ready for the growth and the challenges that are going to come up.”
“Culture is always an evolving thing. And it's actually something you can't really control.”
“Ultimately culture has to be in line with your business objectives.”
“It's a marathon and a sprint at the same time. So pace yourself and keep your strength and keep your own cool and calm first. I would say that to me personally.”
“We've kind of been giving away a lot of our technology and our product for free and we need to be able to start getting into that mindset of capturing value.”
“As a founder, you believe so much in your vision and mission and you live it and you become it and you're own life and your purpose is defined by it.”
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Wh
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Arvind Agarwal, CFO of PayU, shares his career journey and insights into the finance industry. He discusses the importance of having a vision and strategy, as well as the role of profitability in new-age businesses. Arvind also emphasizes the need for respect, recognition, and reward in team building and leadership. He highlights the impact of technology on the finance function and the evolving role of the CFO. Further, he discusses the role of automation in reconciliation, accounting, and invoicing, highlighting the need for technology to reduce costs and improve efficiency. He also shares insights on preparing for an IPO, emphasizing market readiness, business readiness, and internal readiness. Arvind emphasizes the importance of the CFO in steering a company towards an IPO and managing morale and stock price volatility as a public company. He provides advice for companies aspiring to go public and discusses the CEO-CFO relationship and fostering trust. Arvind also shares his predictions for the tech space in 2024. Overall, Arvind provides valuable insights into the finance industry and the skills required for success. ---TakeawaysHaving a vision is important, but it must be accompanied by a strategy to achieve it.Profitability should be a priority in new-age businesses, along with sustainable and responsible growth.Respect, recognition, and reward are key elements in team building and leadership.The role of the CFO has evolved to include strategic finance partnership and control ship.Technology has had a significant impact on the finance function, improving efficiency and accuracy. Automation plays a crucial role in streamlining processes such as reconciliation, accounting, and invoicing, reducing costs and improving efficiency.Preparing for an IPO requires market readiness, business readiness, and internal readiness, with the CFO playing a critical role in the process.Managing morale and stock price volatility is important for a public company, and communication, education, and focus are key in this regard.The CEO-CFO relationship is crucial, with the CFO being a strategic business partner and helping create value for the company.Companies aspiring to go public should have a clear vision for why they want to do an IPO and invest in building a strong finance team early on.The first 100 days as a CFO should focus on understanding the business model, knowing the company and its people, and assessing processes and governance.Balancing short-term wins and long-term goals is important for a C
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Rakib Azad shares his career journey from studying medicine to becoming a CFO in the tech industry. He discusses his transition from medical studies to finance and how he discovered his passion for numbers and business. Rakib also talks about his experiences at MongoDB, Chain Analysis, and Alkira, highlighting the similarities and differences in the infrastructure software space. He explores pricing models in the industry and the challenges of building a winning finance team while scaling a company. In this episode, Rakib Azad, CFO of Alkira, discusses the importance of building a diverse and well-rounded team, hiring for diversity and fit, investing in talent for an IPO, implementing systems and processes, navigating the IPO process from an FP&A perspective, the role of a modern CFO, the first 90 days at a new company, defining a successful career, advice for his younger self, and what keeps him going as a CFO. ---TakeawaysBuilding a diverse and well-rounded team is crucial for success in finance organizations.Hiring for diversity and fit is important to create a healthy and productive work environment.Investing in talent for an IPO should be done strategically and well in advance of the IPO.Implementing systems and processes is essential for scaling a company and optimizing financial operations.Navigating the IPO process from an FP&A perspective requires deep understanding of the business and close collaboration with stakeholders.The role of a modern CFO goes beyond numbers and involves being a strategic business partner.The first 90 days at a new company should be focused on listening, learning, and building relationships.A successful career is defined by making a meaningful impact and building great companies.Advice for a younger self includes being patient and diving deep into learning opportunities.What keeps a CFO going is the challenge of solving new problems and contributing to the growth of a company.
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Quotes“I just love operations and how the numbers tie back to it.”
“Being in the tech world is unbelievable because it's things that you wouldn't have imagined 15, 20 years ago, some of the tech that's coming out. And now, I'm helping these companies become seminal companies and it's a great feeling.”
“I pay a lot of attention to the go-to-market org and how that needs to evolve.&rd
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In this episode, Daniel Himple, a finance recruiter, shares insights into the recruitment process for CFOs and finance leaders in the startup world. He discusses the qualities of a great recruiter and the differences between working in UK and New York. Daniel also explains the backgrounds of modern CFOs and what they look for in companies. He provides advice on when to hire a CFO and the balance between fractional CFOs and full-time CFOs. Additionally, he discusses the increasing demand for CFOs and the key roles to hire at different stages of a company's growth. Further, Dan discusses the challenges of scaling finance leadership, the importance of industry-specific knowledge, and the role of technology in recruiting. He advises aspiring CFOs to gain broad experience early in their careers and to work with world-class CFOs for mentorship. Daniel also shares insights on resume writing, salary negotiations, and the CFO hiring process. He predicts a continued focus on profitability and increased demand for finance leaders in the coming years. ---TakeawaysA great recruiter specializes in a specific field and has a strong network and market knowledge.Modern CFOs come from diverse backgrounds, including consulting and investment banking.Companies are hiring CFOs earlier in their growth stages, and the role of the CFO has evolved to become more strategic.The decision to hire a full-time CFO depends on the company's stage and financial resources.The size of finance teams in startups is increasing, and CFOs are being given more resources to succeed.The recruitment process for CFOs can take longer during turbulent markets, and candidates are becoming more risk-averse.Successful CFO hires require alignment on strategic vision, communication, and a seat at the table.Key roles to hire at different stages of a company include the first in-house finance hire, a growth-focused finance leader, and a CFO for exit or IPO. Finance leaders often struggle to scale beyond a certain point due to a lack of knowledge and exposure to the next stage of a company's trajectory.Having industry-specific knowledge and experience is highly valued when hiring finance leaders, especially at later stages of a company's growth.Compensation in tech companies typically includes a combination of cash and stock, with equity being a significant component.Technology has greatly influenced the recruiting process, allowing for more efficient candidate sourcing and assessment.
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In this conversation, David Yan, CFO of Trees, shares his journey from KPMG to the corporate finance side and eventually to the cannabis industry. He discusses his experience at various companies and the challenges and opportunities he encountered along the way. David also provides insights into the state regulations in the cannabis industry and the funding landscape for companies in this space. He participates in a quick-fire game where he compares different metrics of Trees, Wrike, and Rike. Further, David discusses the evolution of the role of the CFO and the characteristics of a modern CFO. He emphasizes the importance of being forward-thinking and acting as the nexus point between a company's strategy, capital investment, operations, and people. David also explores how advanced technology and data analytics have transformed the finance function, and he shares insights on fostering a culture of innovation and accountability within a team. He provides advice for new CFOs on their first 100 days and offers guidance for young professionals aspiring to become CFOs. ---TakeawaysTransitioning from a traditional finance role to corporate finance can provide a broader perspective and operating experience.The cannabis industry is highly regulated at the state level, which presents unique challenges and opportunities for companies operating in this space.Investor sentiment towards the cannabis industry has evolved over time, with traditional investors now showing interest and conducting due diligence.Metrics such as gross profit, payback, average revenue per customer, LTV to CAC, and churn can vary across companies depending on their business models and target markets. The role of the CFO has evolved to be more forward-thinking and strategic, acting as the nexus point between a company's strategy, capital investment, operations, and people.Advanced technology and data analytics have transformed the finance function, enabling CFOs to gain insights and make informed decisions.Fostering a culture of innovation and accountability within a team requires investing in people's development, encouraging problem-solving, and aligning decisions with the company's overall business objectives.In the first 100 days as a CFO, it is important to understand the business, build relationships with colleagues, prioritize key issues, and communicate a roadmap for the finance function.Young professionals aspiring to become CFOs should focus on developing a solid grounding in finance fundamentals, understanding the company's strategy, and how it operationally meets its goals.
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In this episode, Alex Urmersbach, a four-time CFO, shares his journey in the finance world and provides insights into the role of a CFO. He discusses his international experience and the transition to becoming a CFO, as well as the lessons he learned from the dot-com bubble and the 2008 financial crisis. Alex also shares his experience managing remote teams and offers advice for young professionals aspiring to become CFOs. He highlights the importance of strategic planning, fundraising, and financing strategies in the CFO role. Additionally, he discusses the challenges and motivations of being a CFO and provides tips for success in the first 100 days in the role. In this conversation, Alex Urmersbach discusses his approach to identifying and developing talent within an organization. He emphasizes the importance of finding individuals who have good perspective, think critically, and take ownership of their roles. Alex also highlights the value of promoting from within and fostering ongoing dialogue with managers about career paths and goals. Additionally, he shares his definition of a successful career, which is focused on personal growth, challenging environments, and having a seat at the table to impact outcomes. ---Chapters
01:01 Introduction and Background
04:32 International Experience and Transition to CFO Role
05:40 Early Years in Finance and Long Tenure at Bank of America
12:59 Lessons from the Dot-com Bubble and 2008 Financial Crisis
15:39 Managing the COVID-19 Pandemic at Teleperformance
18:15 Transition to Kiavi and the Real Estate FinTech Lending Space
21:08 Managing Remote Teams and Building Rapport
23:38 Establishing Cadence and the Future of Finance
28:02 When to Hire a CFO and Their Value to the Company
33:56 Short-term Loans in the Home Loans Market
37:16 FinTech company vs. Traditional Lender
40:20 Fundraising and Financing Strategies
43:35 Advice for the First 100 Days as a CFO
50:52 Making Informed Decisions Before Joining a Company
52:39 Motivation and Challenges of Being a CFO
54:28 Advice for Young Professionals Aspiring to Become CFOs
59:55 Defining a Successful Career
01:01:57 Lightning Round
01:06:14 Conclusion
---TakeawaysInternational experience and exposure to different cultures can shape a professional's perspective and adaptability. -
We are stoked to welcome Akshay Sarma as our very special guest for this episode. Akshay is currently the Chief Financial Officer at Axio, and has been recognized as a BW CFO World 40 under 40 and a Financial Star.
With an impressive background spanning across derivatives, trading, and financial structuring, Akshay brings a wealth of experience from working in traditional and tech-enabled financial services organizations.
An alumnus of the prestigious Judge Business School, University of Cambridge, Akshay's journey in finance is nothing short of inspiring. From his early days at Deutsche Bank to leading the way at Axio, his story is a testament to his skill in management, trading, structured finance, and much more.
Today, Akshay joins us to share his insights on the evolving landscape of finance, provide a crash course on Lending businesses, and inspire with his journey in nurturing growth and innovation in the startups he's been part of and growing up the ranks to become a CFO. So, sit back, relax, and get ready to dive into the world of finance like never before.
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Quotes:
“Learning is everything for me.”
“Fintech was a theme. Fintech is a way of life today.”
“How your productivity is defined is, are you doing, what you're doing, best?”
“You need lot of strokes of luck in life. You need people to back you at the right time.”
“I don't know if there is a financial (services) company that isn't a tech company today.”
“The biggest thing the trading floor gave me was the ability to multitask.”
“Modern day CFO is someone who is everybody's partner, and is probably the biggest enabler of business in the organization.”
" I believe complex things are a sum of a lot of basic things together."
"Just check the basics of everything first."
"When you are operationally sound, strategy becomes easy for you to build."
“Finance cannot be a brake because if finance hit the brakes, everything just stops, and the car just cannot stop, right? So, what you need finance to do is to actually act like the heart of a human body. You need to pump blood to every part of the body.”
“In the lending business, the folks who head risk and the folks who head finance are people who have to work the closest because when things shake up on the risk side, they inadvertently shake-up on the P&L.”
"The ability to raise money at a low rate drives everything... the only thing that proves, I think, a lending company's ability to stand out, is vintage."
“Everyone wants a retail portfolio because it's granular, the risk is easier to manage, and it's not lumpy. If one organization goes down, in wholesale lending it has a very big impact. Here you need a macro event to kind of happen for it to go down. So, it helps you manage risk a lot better.”
“There's a whole spectrum of ratings that you have to kind of keep moving up for your cost of funds to drop. And that's a journey. Even in the best of times, it'll take you three, four years.”
"Co-lending helps you maneuver this… It helps you kind of make sure you're playing in the right space. And I think the most important thing from a lender's perspective is it helps you manage leverage. I am not borrowing money directly on my balance sheet. This is money that I'm picking up, giving to an end borrower, giving back when he pays. So, there is no liability on my balance sheet to make an EMI payment every month.”
"Managing your leverage, ability to stay nimble at about two, two and a half x lever, three tops, not go to the four, five, which some of
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It is my utmost pleasure to introduce our esteemed podcast guest today, Mr. David Junius. Currently serving as the Chief Financial Officer at Cowbell Cyber, based in the vibrant city of New York, David brings with him a wealth of experience and a proven track record of excellence in the field of global finance.
With a career spanning over two decades, David has established himself as a highly accomplished Global Finance Executive, renowned for his expertise in areas such as corporate finance, business planning, accounting, and budgeting. His knack for developing new financial models and enhancing existing analytical tools has been pivotal in consolidating total P&L, showcasing his unparalleled ability to direct key executive functions in multi-cultural settings and delivering large-scale financial transformation.
David’s journey with Cowbell Cyber, a growth-stage startup that has raised over $100Mn, began in October 2022, and in just over a year, he has already made significant strides in propelling the company towards greater heights. Prior to this, he held the position of Chief Financial Officer at SiriusPoint in New York, where he played a critical role in the transformation and turnaround of two Bermuda reinsurers. His leadership saw the management of a considerable portion of the company's workforce spread across North America, Bermuda, Europe, and Asia, establishing him as a primary contact for investors and rating agencies.
His tenure at AIG, spanning 19 years, saw him in various pivotal roles, including CFO of International General Insurance, Vice President & Treasurer, and Head of Capital Strategy, among others. During this time, David managed financial reporting, business support, capital planning, and regulatory reporting for AIG’s most profitable general insurance segment, covering over 50 countries and territories.
David’s academic background is as impressive as his professional journey, with an MBA in Analytical Finance and Accounting from the prestigious University of Chicago, an MAIA in International Affairs and Russian Studies from The George Washington University, and a BA in International Relations and Soviet Studies from Boston University.
Ladies and gentlemen, please join me in welcoming a man of integrity, creativity, and unmatched work ethic, someone who brings a high degree of personal initiative to everything he does, Mr. David Junius.
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Quotes:
“I think this is one of the greatest challenges for CFOs over the last 20 years. Everyone is in the technology business. It doesn't matter what your business is… from a CFO perspective, everybody's in the data business, and hence everybody's in the technology business.”
“The real challenge today is how to use data.”
“One of the key elements of being a good CFO is interacting with a different set of strategic partners, stakeholders, and giving the CEO feedback in a different way than what he's hearing from customers, distribution partners, and also employees.”
“They may come at it from the accounting side; they might come at it from the treasury side. They may come at it from the business side, and I was able to blend each of those experiences and really bring those together. And I think that gives me a bit of a different perspective than other CFOs that might've only come up through one function.”
“Treasury is a great place to learn a business because when you understand how the cash flows in an organization, you really understand what the levers are because you don't get caught up in the intangible or just the accounting items, you really see the cash flows.”
“Sometimes you have to have your eyes open, open to possibilities, but you also have to trust that maybe some of the people that you work for know you and kn
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Today, we're thrilled to have with us — Arjun Mehta, an experienced operator in the finance industry with an impressive career spanning over two decades across some of the world's most renowned corporations. Arjun currently spearheads the financial strategies of Revolut India as their Chief Financial Officer.
Arjun’s journey through the finance world is as diverse as it is impressive. Before joining Revolut, he played a critical role as Senior Vice President, Head of Strategy at Max Life Insurance. Here, he wasn't just a strategist; he was a visionary, identifying groundbreaking growth initiatives and driving digital agendas, all while keeping his finger on the pulse of market trends and insights.
And who can overlook his nearly five-year tenure at Apple? As the Commercial Controller, Arjun was instrumental in structuring deals that significantly expanded Apple's footprint in India, taking on end-to-end responsibility for business planning and driving transformation across various channels.
He has also spent ten years at American Express, where Arjun ascended to the role of CFO for their Indian operations. From enhancing profitability to negotiating deals and managing investments, he was a force behind countless strategic decisions that shaped the company’s success.
Arjun's foundations in finance were laid at KPMG, and he further honed his skills at HT Media Ltd. His academic background is just as sterling, with credentials like an MBA from the prestigious Indian School of Business and a Chartered Accountant designation from the Institute of Chartered Accountants of India.
Throughout his career, Arjun hasn't just been a finance professional; he's been a strategist, a transformation leader, and above all, a visionary capable of steering multimillion-dollar companies through uncharted waters with his acute financial acumen and strategic foresight.
Let's welcome Arjun Mehta!
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Quotes:
“The greatest job of a modern-day CFO is to help the organization and people prioritize their jobs.”
“The leadership team doesn't do things. They get things done, and they're supposed to be the guideposts.”
“The greatest similarity across all three businesses (Amex, Apple, and Max Life) is a maniacal focus on margins, cash flows, and profitability.”
Traits to be successful in India? “Patience, deep pockets, and speed to market, in that order.”
“It starts with being curious about everything and asking questions.”
“India is different. So to that extent, I think the rope or the slack that the global companies need to cut India, actually, and this is my personal view, determines the success or the presence in terms of scale that the company is able to get in India. So, yeah, culturally, even at a product customization level, etc., even tiered distribution because India being a fragmented market and consumer segment densities are not the same as other large markets, those adjustments need to be made, and they reflect in our way of functioning. They reflect in the processes and policies they deploy in the India market. So yeah, that's where the differences come in.”
“There's nothing called as the Indian consumer. The Indian consumer is at a point in time relative to the market offering and relative to the psychological economic climate in the country, and what I just called out changes every six months.”
“I very simplistically take it as three pillars, which the CFO needs to address – the shareholder pillar, the customer pillar, and the employee pillar.”
“I don't have eight hours in a day. If I have a six-member team, I have 48. And how am I utilizing those 48 hours? And at the end of the day, is the team feeling fulfilled
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I am elated to introduce our distinguished guest, Mr. Karan Bhople, whose financial ingenuity and visionary leadership have earned him a revered spot among the Top 25 CFOs in Software for 2023 published by the well known Finance & Investing. Currently, as the Chief Financial Officer of strongDM, Karan is at the forefront of propelling the firm’s momentum and laying a robust foundation for an expanding enterprise business. His financial stewardship is not only instrumental in modernizing infrastructure access but also embodies a holistic approach to organizational excellence.
Before his remarkable journey with strongDM, Karan showcased his financial prowess as the Vice President of Finance at SentinelOne. His strategic acumen was crucial in scaling the company from a modest $15 million of annual recurring revenue to an astounding $300 million and beyond. His key role in orchestrating the company's successful IPO speaks volumes of his adeptness in navigating the complex financial landscapes of the cybersecurity domain.
Prior to these roles, Karan honed his skills at notable firms like FinancialForce (now Certinia) and Salesforce, where his financial modeling and strategic planning were instrumental in driving fiscal growth. His early career as a Financial Analyst at The Walt Disney Company laid a solid groundwork for his illustrious career trajectory.
A proud alum of Stanford University with a bachelor's degree in Chemical Engineering, Karan’s professional narrative is a blend of continuous learning, relentless pursuit of excellence, and adept financial leadership.
As we delve into today’s discussion, we are poised to glean invaluable insights from Karan’s rich experiences and learn about the financial scaffolding that empowers tech firms to transcend conventional boundaries in this digital epoch. Please join me in extending a hearty welcome to Karan Bhople.---
Quotes:
“The CFO's job is to optimize the valuation of the company.”
“If you combine a good product in a hot market… with good operators, you may have something.”
“The criticality of the software that we were selling made the revenue streams more reliable.”
“The easiest way to get promoted is by getting your boss promoted or by helping your boss look really good.”
“There is no teacher like the market.”
“What determines the elasticity of demand in a market? And one of the factors is, is the market for a luxury or a necessity? And the more necessary it is, the more robust the revenue stream will be if you figured out the product.”
“But it is largely a relationship management job. And it's a people management job. It's public speaking, communication, presentation, being able to read what the people across from you want and then figuring out how to bridge the gap.”
“Corporations are not democracies, and the CEO cannot make decisions by asking everybody what they think and asking for a show of hands and counting the votes. At the end of the day, the CEO is the ultimate executive, it is the chief executive. And the CFO's job, once a decision is made, unless there is fraud or some kind of violation of fiduciary duty going on, the CFO's job is to help the CEO execute the vision.”
“In a decent growth tech company, if you're running FP&A and strategic finance, three or four annual planning cycles is good, and then you know what the business is.
The times when that doesn't apply is if the business model, not the revenue growth, revenue growth can be really high, but if the business model is changing, if a company that is doing only software suddenly starts selling hardware as well and starts having multiple revenue streams, and the business is really changing, not in terms of pace, but in terms of complexity
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Today, we have a very special guest joining us on the podcast. Based in Mumbai, India, he's a titan in the world of investment banking, especially in the digital and technology sectors in India. With over two decades of experience under his belt, he's been at the forefront of some of the most significant transactions in the industry.
Ladies and gentlemen, please welcome, a friend and mentor, Pankaj Naik, the Co-Head of Digital and Technology Investment Banking at Avendus Capital - the premier Financial Services firm in India which I'm also a proud alumni of. This group, co-led by Pankaj, has worked with some of the most marquee names in the Indian startup ecosystem, including Ofbusiness, Zepto, Dream11, Dailyhunt, Swiggy, Lenskart, Mintifi, Licious, Open, Eruditus, Nykaa, Zenoti and many many more.
Pankaj's illustrious career has also seen him work with some of the most prestigious names in the banking world, including an 11-year stint with J.P. Morgan, where he led transactions worth over USD 10 billion and DSP Merrill Lynch.
Pankaj is an alumnus of the esteemed IIM Calcutta, holding an MBA with a major in Finance, and he's also an engineering graduate from the Government College of Engineering, Pune. A regular speaker at top-tier industry events focused on the technology ecosystem in India, Pankaj brings a wealth of knowledge and insights to the table.
So, let's dive deep into the world of digital and technology investment banking with the one and only, Pankaj Naik."
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Quotes:
"I don't think everybody has patience for day zero all the time."
"People are incredibly focused on where the dollar earned is going. I am not saying that means that people want everything to be profitable. No, that is not the case. People are ready to give a lot of leeway to unprofitable companies if they are growing in the direction that they need to grow and for which they need to spend money. That means money being spent on sales, marketing."
"(Investors) are increasingly asking the question of if throwing people at the problem is the only solution?"
"It's (been) a lot of hard work and serendipity, which I truly believe that in business like ours external environment determines a lot in terms of outcomes. But your sincerity, hard work, and innovation at least get you the ticket to the lottery."
"They were building and ability to grow in a new franchise, which is committed to India would be far higher compared to the place where I was in."
"There are some people who do phenomenally well in large organizations and carve out their niches and build their careers. And then there are people who get restless even if things are going well. I haven't seen that people will actually move very soon if they see the growth. And I think the reason for me also to kind of make these calls where I just saw probably the probability of higher growth to be higher in the next opportunity."
"I'm not the kind of guy who has a risk appetite of a startup… I've dealt with and interacted with so many entrepreneurs. All I can say is I have such an immense respect for entrepreneurs, not just for what they build, but for what they just go through."
"I will do what I do good, which I believe that working closely with founders to make sure that when we go and talk to investors, they realize their potential with respect to how good the company and the founders are and at least it is my job to actually help the founder to make sure that investors appreciate how good it is, right?"
"The CFO talent in India versus CFO talent in the US is slightly different. The CFO talent in the US is largely a big picture, strategic, outward-going, investor-focused talent vs. India is largely managing the house, cost, risk, and then investor discussion."
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I'm super excited to be speaking with Joy Mbanugo today. She is a Chief Financial Officer and Qualified Financial Expert, known for her work in financial governance and structure across organizations ranging from $200 billion to pre-revenue startups.
Currently serving as the CFO at ServiceRocket, Joy's responsibilities encompass finance, accounting, revenue operations, treasury, and more. Her focus areas include enhancing profitability, cash management, scaling the business, and leading digital transformation.
Joy joined ServiceRocket from Google where she held several finance roles. At Google Cloud, she analyzed deals worth between $25MM and $1B related to Google Cloud Partnerships and Industry Solutions. She developed a process to provide monthly financial results to the Cloud Partnership and Industry Solutions leadership and monitored annual revenue growth of up to $1.5B. She also designed and implemented a cash management system for Alphabet Treasury, transforming intercompany transactions and funneling over $100B in assets. Additionally, she engineered the Tax and Intercompany workstreams for the most extensive U.S. ERP conversion from Oracle to SAP. Joy managed a team of more than 80 contractors and over 40 staff members and orchestrated investment and risk management strategies to influence business decisions.
Her previous experience also includes working at BlackRock, where she handled taxation of securities lending, and at Ernst and Young, where she worked in both audit and tax.
A leader, a mentor, and an innovator, Joy has also been a voice for empowerment, leading employee resource groups at Google and served as an Advisor on the Finance Committee for the Northern California Chapter of the American Civil Liberties Union. She has also written for various publications, including Forbes and Huffington Post.
In her spare time, Joy enjoys local markets, spending time with family and friends, and investing in crypto and private companies. With a rich educational background, including a Juris Doctorate and a Masters of Accountancy, Joy's insights are backed by a profound understanding of the financial landscape.
Join us as we explore the mind of Joy Mbanugo, her approach to finance, and delve into her strategies, philosophies, and the experiences that have contributed to her success so far.
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Quotes:
“I would just encourage women to speak up because it's really hard.”
“For the modern CFO, data is everything.”
“Thinking strategically about growth, no matter what size you are.”
“Don't be afraid to say what you want to do.”
“A CFO should look at themselves as a servant to the business. And so you are there to enable the business and you are there to be a great partner to the business.”
“I think [AI in finance] is gonna be revolutionary. I feel like it's been here for a while. I think we're just now seeing it.”
“I am a very organized person in the sense that once I put my mind to something, I kind of tried it out. But I took a lot of data points.”
“If people talk about investing in things, investing in yourself always has the highest return.”
“That was a pivotal point for me because seeing women who had been, not are, but were very successful CFOs on corporate boards, I was like, okay, I think I can do this.”
“Get to know the people. And that, you know, that's very cliche, but I think when you get a big title, your ego can take over.”
“Well, you leave Google if you want to get a higher title, right? So Google's great. But one thing Google is really good at doing is hiring people who are really good at one thing and keeping you in that one thing. And so if
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Our guest today is no stranger to the complexities and challenges of the startup world. He is a master of navigating transformative change, especially when it comes to scaling startups and optimizing the intricacies of business. He's an entrepreneur, a strategist, a financial expert, and even a go-to-market leader.
Mika Kasumov is the dynamic founder at Abacus & Pencil Consulting, where he's made it his mission to guide Series B & C startups through the intricate mazes of business transformation as a fractional Chief Performance Officer. He's been the cornerstone of various consulting engagements with emerging giants like Mux, Rallyware, Trusted Health, and Sparks Rowing.
His seasoned journey has also seen him as the Vice President of BizOps & Strategic Finance at the renowned MasterClass, the Chief of Staff to the CEO of Pantheon Platform, and the strategic force behind businesses like Upwork, Pandora, eBay, and Sears Holdings Corporation.
But Mika isn't all business. He values growth not just in the boardroom but in life. Whether it's refining financial strategies, mentoring fellow leaders, diving into the nuances of the French language, or exploring the world of fiction, he truly embodies the spirit of continuous learning and growth.
Ladies and gentlemen, a master of transformative change and a passionate learner at heart, please extend a warm welcome to Mika.---
Quotes:
“I really approach the finance function as a driver for growth as opposed to an accounting-oriented cost center.”
“Don't let hubris around your evaluation number get in the way of building a long-term company.”
“Early on in my career, remote work would have actually hindered me.”
“I think that finance can be a competitive advantage. The way successful companies differentiate themselves is when they use the function to be a bridge between departments, to be the connective tissue between what is the investor narrative, how are we pitching, and what are you actually delivering to your customer, how are you measuring the customer outcomes, right? And there's a ton of things in between, like you have all the different teams whose operating priorities need to stack up, need to align, for you to have both a good employee, a customer, and an investor outcome. And I just simply can't think of any other function that can deliver that outside of finance.
“It's about having this parallel track of, here are the things I'd like to do when I have the opportunity to, here are the things I can do today, and here's how I'm gonna create an opportunity for myself to act on the rest of it in 18 months or 12 months or whenever the opportunity arises.”
“The CFO's role is to respectfully challenge, but also support the vision. And there's a delicate balance to play there between saying no to everything, and uncovering and front running risks so that the rest of the company doesn't have to worry about.”
“Strategic finance is fundamentally business partnering. And you have to go meet the rest of the business where it's at. If you have a rev ops team, you partner with your rev ops team. If you don't, you go and build those capabilities within a strategic finance org. And in the best cases, strategic finance is setting the operating case…
…ultimately, the idea (strategic finance) is that you're filling the void between departments and you're doing that by being a good partner for each one of them.”
“As a founder, you need to be concurrently data-driven, like searching for your product-market fit, and have the ability to ignore 90% of the data points out there. And that creates cognitive dissonance, right? The idea is that it's really hard for us as humans to hold to contradictory beliefs in our
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I'm thrilled to introduce our guest for today's episode. With a rich experience of over two decades in the realm of operational excellence and value creation, Pete Boyes is currently an esteemed Operating Partner at Thoma Bravo, which is amongst the best investment firms globally focused on Software or SaaS companies.
Today, Pete works hand-in-hand with multiple Thoma Bravo portfolio companies and guides their CFOs and finance departments on strategic as well as tactical matters.
In my view, Pete is the perfect example of a successful private company CFO. Being a serial CFO, he has scaled his experience along with his companies with each role. His impressive track record includes influential stints at companies such as Zego, which was notably acquired by Global Payments, SOASTA, taken over by Akamai Technologies, and ID Analytics, which found its new home with Symantec through LifeLock. Before these standout roles, Pete honed his skills as a technology Investment Banker, facilitating a multitude of M&A and Corporate Finance transactions across a vast spectrum of companies.
In his last role as a CFO, at Zego, a company backed by Vista Equity, Pete was a key catalyst in orchestrating both organic and acquisition-driven revenue growth, culminating in a successful exit to Global Payments. Demonstrating his adaptability and leadership, Pete seamlessly transitioned to the role of GM post-acquisition, spearheading Zego's integration into the Integrated Software division at Global Payments.
An alumnus of the University of Southern California, Pete did his BA in International Relations and then pursued an MBA.
---Quotes:
"I think as we talk about CFOs today, half of the time, you could say the CFO was acting as a COO. And there's a lot of operational chops."
"When you do one-on-ones with your CEO, I would always ask that question, what can I take off your plate?"
"The controller of today is a CFO 15 years ago in some ways. They're doing two-thirds of the work that CFOs did 15 years ago. That allowed the CFO to become more modern, where not only are they doing your standard FP&A work and work on the accounting side, but they could have the renewals team underneath them. They've got legal underneath them. They may have HR underneath them, and they may even have certain operations underneath them. The role of the CFO has become much more broad and operationally focused."
“Whether or not HR rolls into that function or not, you tend to spend a lot of time in a positive way working on people issues. I don't mean it as a bad word in issues, but people opportunities, if it's coaching and learning.”
"Ultimately, I got much better at this when I started to inspire, to empower, to communicate, to coach, to guide team members, not just on your own team, but throughout the organization, listening to other folks vent about challenges they're having in their organization, trying to solve people problems."
"The more we created a lot of the infrastructure and built the systems in place that would enable this business to scale and grow and create value, the better opportunity you have for a buyer to pay more for it when it's their turn. That's what I learned."
"In some respects, recurring revenue, SaaS, subscription models, the cloud enabling that have all, really changed the modern CFO to be more operationally focused and definitely metrics focused to enable not just to meet public market expectations, meet their lender expectations and then ultimately valuation expectations."
"The best finance leaders and the best finance employees are well-rounded within the entire organization. They're not siloed and just sitting in their office banging away at models. That's a large part of their job in many ways, but you'll be better at loo
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