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Mar 4, 2022 · 21m · top-founders

He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next?

Biz Kundu Roy · 12m spoken Nathan Latka · 5m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this interview, Coaster founder Biz Kundu Roy discusses how his SaaS platform digitizes car rental operations, breaking down the company's pricing model, fundraising milestones, and pathway to reaching $100,000 in monthly recurring revenue.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 31% of the talking time here. How this is scored →

Nathan as informed peer 5.5 Guest teaching 4.0 Guest disagreement 2.5 Nathan pushing back 4.7
05100:0010:0020:000:45–4:55 · Nathan as informed peer 5/10 The Origin and Mission of Coaster Nathan probes Coaster's business model and forces Biz to define customer segments. Biz explains how they categorize tiers from local operators to enterprise fleets.4:55–8:27 · Nathan as informed peer 8/10 Revenue Breakdown and Current MRR Reality Check Nathan rigorously calculates the expected MRR based on Biz's customer counts and price points, revealing an implied $70K-$100K MRR before Biz clarifies their current actual MRR is only around $20K.8:29–11:13 · Nathan as informed peer 4/10 Asset Fluctuations and Car Rental Defleeting Cycles Nathan challenges the shift from per-asset to per-use pricing and questions fleet reductions. Biz takes control by educating Nathan on the vehicle defleeting cycle and macro supply chain dynamics in car rental.11:15–16:12 · Nathan as informed peer 5/10 Sponsor Break: Paragon Integration Platform Following the mid-roll ad read, Nathan steps through the founding timeline and early pre-seed round, with Biz detailing their bootstrap period and pandemic strategy.16:13–19:22 · Nathan as informed peer 7/10 Seed Funding, Team Distribution, and Pathway to $100K MRR Nathan interrogates why the business needs another $1.2M raise after recently selling 25% for $2M, drilling into headcount breakdown and burn before Biz outlines their path to break-even at $100K MRR.19:23–21:10 · Nathan as informed peer 4/10 Famous Five Questions and Company Recap A standard Famous Five wrap-up followed by Nathan delivering a fast summary of Coaster's metrics and trajectory.0:45–4:55 · Guest teaching 4/10 The Origin and Mission of Coaster Nathan probes Coaster's business model and forces Biz to define customer segments. Biz explains how they categorize tiers from local operators to enterprise fleets.4:55–8:27 · Guest teaching 5/10 Revenue Breakdown and Current MRR Reality Check Nathan rigorously calculates the expected MRR based on Biz's customer counts and price points, revealing an implied $70K-$100K MRR before Biz clarifies their current actual MRR is only around $20K.8:29–11:13 · Guest teaching 8/10 Asset Fluctuations and Car Rental Defleeting Cycles Nathan challenges the shift from per-asset to per-use pricing and questions fleet reductions. Biz takes control by educating Nathan on the vehicle defleeting cycle and macro supply chain dynamics in car rental.11:15–16:12 · Guest teaching 3/10 Sponsor Break: Paragon Integration Platform Following the mid-roll ad read, Nathan steps through the founding timeline and early pre-seed round, with Biz detailing their bootstrap period and pandemic strategy.16:13–19:22 · Guest teaching 3/10 Seed Funding, Team Distribution, and Pathway to $100K MRR Nathan interrogates why the business needs another $1.2M raise after recently selling 25% for $2M, drilling into headcount breakdown and burn before Biz outlines their path to break-even at $100K MRR.19:23–21:10 · Guest teaching 1/10 Famous Five Questions and Company Recap A standard Famous Five wrap-up followed by Nathan delivering a fast summary of Coaster's metrics and trajectory.0:45–4:55 · Guest disagreement 2/10 The Origin and Mission of Coaster Nathan probes Coaster's business model and forces Biz to define customer segments. Biz explains how they categorize tiers from local operators to enterprise fleets.4:55–8:27 · Guest disagreement 4/10 Revenue Breakdown and Current MRR Reality Check Nathan rigorously calculates the expected MRR based on Biz's customer counts and price points, revealing an implied $70K-$100K MRR before Biz clarifies their current actual MRR is only around $20K.8:29–11:13 · Guest disagreement 5/10 Asset Fluctuations and Car Rental Defleeting Cycles Nathan challenges the shift from per-asset to per-use pricing and questions fleet reductions. Biz takes control by educating Nathan on the vehicle defleeting cycle and macro supply chain dynamics in car rental.11:15–16:12 · Guest disagreement 1/10 Sponsor Break: Paragon Integration Platform Following the mid-roll ad read, Nathan steps through the founding timeline and early pre-seed round, with Biz detailing their bootstrap period and pandemic strategy.16:13–19:22 · Guest disagreement 3/10 Seed Funding, Team Distribution, and Pathway to $100K MRR Nathan interrogates why the business needs another $1.2M raise after recently selling 25% for $2M, drilling into headcount breakdown and burn before Biz outlines their path to break-even at $100K MRR.19:23–21:10 · Guest disagreement 0/10 Famous Five Questions and Company Recap A standard Famous Five wrap-up followed by Nathan delivering a fast summary of Coaster's metrics and trajectory.0:45–4:55 · Nathan pushing back 4/10 The Origin and Mission of Coaster Nathan probes Coaster's business model and forces Biz to define customer segments. Biz explains how they categorize tiers from local operators to enterprise fleets.4:55–8:27 · Nathan pushing back 8/10 Revenue Breakdown and Current MRR Reality Check Nathan rigorously calculates the expected MRR based on Biz's customer counts and price points, revealing an implied $70K-$100K MRR before Biz clarifies their current actual MRR is only around $20K.8:29–11:13 · Nathan pushing back 6/10 Asset Fluctuations and Car Rental Defleeting Cycles Nathan challenges the shift from per-asset to per-use pricing and questions fleet reductions. Biz takes control by educating Nathan on the vehicle defleeting cycle and macro supply chain dynamics in car rental.11:15–16:12 · Nathan pushing back 3/10 Sponsor Break: Paragon Integration Platform Following the mid-roll ad read, Nathan steps through the founding timeline and early pre-seed round, with Biz detailing their bootstrap period and pandemic strategy.16:13–19:22 · Nathan pushing back 6/10 Seed Funding, Team Distribution, and Pathway to $100K MRR Nathan interrogates why the business needs another $1.2M raise after recently selling 25% for $2M, drilling into headcount breakdown and burn before Biz outlines their path to break-even at $100K MRR.19:23–21:10 · Nathan pushing back 1/10 Famous Five Questions and Company Recap A standard Famous Five wrap-up followed by Nathan delivering a fast summary of Coaster's metrics and trajectory.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 47% · guest 53%0:00 · Nathan 47% · guest 53%3:00 · Nathan 19.8% · guest 80.2%3:00 · Nathan 19.8% · guest 80.2%6:00 · Nathan 33.1% · guest 66.9%6:00 · Nathan 33.1% · guest 66.9%9:00 · Nathan 31.8% · guest 68.2%9:00 · Nathan 31.8% · guest 68.2%12:00 · Nathan 27.4% · guest 72.6%12:00 · Nathan 27.4% · guest 72.6%15:00 · Nathan 15.1% · guest 84.9%15:00 · Nathan 15.1% · guest 84.9%18:00 · Nathan 41.6% · guest 58.4%18:00 · Nathan 41.6% · guest 58.4%21:00 · Nathan 82.8% · guest 17.2%21:00 · Nathan 82.8% · guest 17.2%
Sharpest disagreement ▶ 8:29 Biz retorts on precision of questions

Biz directly pushes back against Nathan's accusation about pipeline exaggeration, countering that Nathan asked for averages rather than exact figures.

 Hardest push from Nathan ▶ 8:03 Nathan corners Biz on actual MRR

Nathan calculates total expected MRR from Biz's tier numbers and immediately confronts him when Biz admits they are only at $20K rather than the implied numbers.

 Biggest teaching moment ▶ 10:16 Defleeting and residual value mechanics

Biz walks Nathan through the foundational unit economics of car rental companies making their margins on buying and selling depreciation cycles rather than just rentals.

 Nathan holds their own ▶ 6:26 Live unit economics breakdown

Nathan rapidly recalculates volume discounting and customer tier averages in real time to show the exact revenue ceiling.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
The Origin and Mission of Coaster 5424 Nathan probes Coaster's business model and forces Biz to define customer segments. Biz explains how they categorize tiers from local operators to enterprise fleets.
Revenue Breakdown and Current MRR Reality Check 8548 Nathan rigorously calculates the expected MRR based on Biz's customer counts and price points, revealing an implied $70K-$100K MRR before Biz clarifies their current actual MRR is only around $20K.
Asset Fluctuations and Car Rental Defleeting Cycles 4856 Nathan challenges the shift from per-asset to per-use pricing and questions fleet reductions. Biz takes control by educating Nathan on the vehicle defleeting cycle and macro supply chain dynamics in car rental.
Sponsor Break: Paragon Integration Platform 5313 Following the mid-roll ad read, Nathan steps through the founding timeline and early pre-seed round, with Biz detailing their bootstrap period and pandemic strategy.
Seed Funding, Team Distribution, and Pathway to $100K MRR 7336 Nathan interrogates why the business needs another $1.2M raise after recently selling 25% for $2M, drilling into headcount breakdown and burn before Biz outlines their path to break-even at $100K MRR.
Famous Five Questions and Company Recap 4101 A standard Famous Five wrap-up followed by Nathan delivering a fast summary of Coaster's metrics and trajectory.

Statements from this episode (8)

Disclosure
Roy: Coastr charges basic operators £3-£4 per vehicle monthly
“Very, very basic users would pay anything between kind of, you know, three to four pounds per vehicle per month. And that could as the three to four pounds per what? Per vehicle per month. What if a vehicle doesn't go rented? It's just sitting on the lot. I kn…”
Biz Kundu Roy Mar 4, 2022 ▶ 3:24
Assertion Not checkable as stated
Roy: Coastr generates roughly $20,000 in monthly recurring revenue
“Roughly about 20.”
Biz Kundu Roy Mar 4, 2022 ▶ 8:17
Insight
Roy: Car rental profits rely on defleeting timing and rental yield
“Rental companies earn income from two ways. One is buying and selling of the vehicle at the right time. So they buy in bulk at a reduced cost and then sell their assets at the right time. To optimize the value of that asset. So defleeting is essential. And in …”
Biz Kundu Roy Mar 4, 2022 ▶ 10:29
Assertion Partly supported
Roy: Most car rental companies defleet vehicles within 6 to 18 months
“Some of them do it within six months. I think enterprise and some of the larger operators the smaller operators sometimes take it up to 18 months. But most of them, you will always see them selling between six to 18 months effectively.”
Biz Kundu Roy Mar 4, 2022 ▶ 10:57
Assertion Not checkable as stated
Roy: Coastr reached 40 to 50 tier-three customers by late 2021
“So that's where we kind of jumped to about 40 50 customers and the tier three space by end of 20, 21.”
Biz Kundu Roy Mar 4, 2022 ▶ 12:49
Assertion Not publicly verifiable
Roy: Coastr sold about 8% equity in its pre-seed round
“No we gave about eight percent.”
Biz Kundu Roy Mar 4, 2022 ▶ 14:33
Disclosure
Roy: Coastr raised £1.4M for 25% equity in June 2021
“One was a 1.4 million pounds, which is roughly about two, two million dollars, I think, or just a little bit shorter. So this was completed in June, 20, 21 which is again, mostly private individuals. And we gave up another 25% as part of that.”
Biz Kundu Roy Mar 4, 2022 ▶ 16:28
Prediction Not checkable as stated
Roy: Coastr targets $100K MRR and breakeven by end of 2022
“So by end of this year, we hope to utilize this fund to get to our hundred KMRR, which sort of gets us to break even revenue.”
Biz Kundu Roy Mar 4, 2022 ▶ 19:15
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