Behind Zoftware: Techstars said my idea is sh*t. But they bet on me.
Aayushman Dalmia started his first startup while studying in the US. It didn’t work out at the time, but he never stopped thinking about the next big thing.
As often happens, while facing a problem at his family’s company, he came up with the idea to build a SaaS marketplace for the MENA region, Zoftware. Now, with 7,000+ products and over 100,000 users, they are scaling further!
Learn more about Aayush’s early journey, biggest failures, his experience with Techstars, and tips for early-stage founders.
Let’s dive in!
What context do I need to know about you to understand Ayushman sitting next to me today?
I was born in Delhi and moved to Dubai with my family when I was two. I did my high school here and then went to Indiana University Bloomington for computer science.
During my third year of university, my roommate and I started a company similar to Uber for tutoring. We scaled it to 300 universities, but it wasn’t viable due to seasonality as the platform was only used during exams. So we sold it with a small exit.
After that, I joined my family’s business, Data Direct Group, a major BPO in the region handling call centers, document storage, and more across UAE, Oman, and Bahrain. One of my projects at Data Direct Group was selecting and implementing a new CRM.
It was a huge pain with so many solutions and consultants pushing their products. This experience led me to create a SaaS marketplace for the MENA region where I could see different software solutions for my needs—that’s how Zoftware came to life.
What’s Zoftware?
Zoftware is a platform designed to simplify software discovery. We list 7,000+ software products and use AI to match users with the right tools based on their industry needs. Our platform collects data on buying intent to help software companies target potential customers. We’re the only SaaS marketplace in the MENA region, ideal for businesses looking to enter this market and understand local specifics.
How do you make money?
We charge software companies a subscription fee for access to this data and additional services.
To attract users, we focus on content creation, SEO, and integrating advanced AI tools. Our goal is to make the software selection process smoother and more efficient for everyone involved.
How did you get your first 100 customers?
Honestly, it was pretty basic—personal network referrals, partner models, and cold emails. We reached this number in 3 months, but we struggled to service them due to a lack of users searching for software.
My CTO and COO were my first hires, but we also hired a bunch of junior salespeople, which was a mistake. Early on, it’s crucial for founders to handle sales.
What was the biggest failure on your journey so far?
In which month? There have been many failures.
The most notable was hiring. If you pay peanuts, you get monkeys. I didn’t pay enough for critical roles like design, product, and sales, which negatively impacted the product and user experience. There was little transparency. Spending a bit more for better talent and recruiting carefully is a major lesson learned.
Another lesson is to fire fast and hire slow, and the same goes for working with agencies. Wasting money, time, and getting more stressed is not worth it.
Congrats on getting selected by Techstars. How did it help you?
Techstars was a phenomenal experience. I moved to London for a couple of months for the accelerator. To this day, I don’t know why exactly they selected me and Zoftware out of the 850 startups that applied. They said my idea was sh*t for a VC as it was not scalable or VR fundable, but they bet on me as a founder to change that.
We applied with traction and didn’t pivot, but discussions with mentors helped us add more value to the platform and shift from standard lead generation to buyer/sales intelligence, incorporating AI where it benefits users.
What’s next for Zoftware?
We’re planning to start fundraising very soon, likely within the next month. Scaling is the focus. We’ve achieved product-market fit, have paying customers, and a 100% retention rate.
Now it’s about getting out there and making ourselves visible.
We’re looking to raise about a million dollars: 70% will go into marketing and sales, 20% into tech maintenance and improvement, and 10% for miscellaneous expenses.
What would you like to tell founders who are just starting?
I’m not one for many words of wisdom, but based on my experiences, the main thing is to have confidence in what you’re doing.
There will be more bad days than good.
Talk about the problems you’re facing and speak to customers.
These basics might seem obvious, but I used to find it hard to ask a friend for feedback. You've got to test your hypothesis.
Thanks Aayush for sharing your story and all the best to Zoftware!
Kristina
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