After founding the company, Carrasco and his partners began building a platform for Leapfactor, established a cloud at Miami-based Verizon subsidiary Terremark, developed their first apps and made their first sale in 2010 to a financial services company. They also began seeking venture capital and by the end of last year had obtained more than $13 million in funding. "Right now, the company's capitalization is good," Carrasco says.
Leapfactor expanded its staff, hiring developers at R&D centers in Mexico City, Argentina, Bolivia and Uruguay. It expects to have more than 65 employees by the end of the year. It also promoted its apps to potential clients in Mexico, Brazil and the United States, and today has more than 25 customers, including Avon, AstraZeneca, AXA, Bayer, Chase credit cards, L'Oreal and SAP.
According to Carrasco, Leapfactor's revenues grew by 48 percent last year and are expected to double or triple this year. "The reason for that accelerated curve is recurring revenues," he adds, as revenues from new clients are added to existing customers. The company expects to become profitable in 2013. "Three years ago, some people looked at us like we were crazy," Carrasco says. "They said you don't sell to enterprise [customers] for less than $1 million. You'll never make money at 99 cents or at $9.99 per month per app."
Those skeptics were wrong. The privately held Leapfactor, which now has offices in Miami, Mexico City, Sao Paulo and Buenos Aires, is developing new apps and modifying existing ones to meet the needs of small and large enterprises. The apps are typically sold as a service, which means that customers do not need to make large investments in servers and IT staff to connect programs to employees.
In other words, companies can save money with Leapfactor apps. While a large business might have to pay $2,000 for a license so that an employee can control petty cash online, they can pay much less for a small application that Leapfactor can offer on an iPhone.
At large companies, costs may start at $1.99 or less per month for each employee, while firms with fewer workers could pay $19.95 per month. "We have flexibility in pricing," Carrasco says. The apps are "performance driven," he adds, and in the end, "it has to be affordable to the customer."
Currently, the company is focusing on certain apps for direct-selling companies like Avon, and is offering more industry-specific apps. One target, for example, is the pharmaceutical industry, where sales reps visit physicians and clinics. So far, Salesfactor is the company's bestseller. "It's an app that allows sales people on the go to engage with their customers, show their products and take orders," Carrasco notes. "I haven't met the company yet that doesn't want to sell more."