Bangalore: Are you unsure about how customers will respond to a promotion or service or product that you plan to launch? Get in touch with activecubes Solutions Pvt. Ltd, an analytics services firm, which will provide you with what it calls a “response model” predicting the inclination of a customer to respond to your offer.
The Bangalore firm was started by Rajesh Varrier in January 2007 and has six other founders, who joined the firm within eight months of its inception. Prior to founding activecubes, Varrier was working with Infosys Technologies Ltd as head of its human capital management practice.
The founders: (L-R, bottom row) Anand G.C.P. Chennira, Ramachandran Kallankara, Anand Sam; (L-R, middle row) Prabhu K. Gutta, Rajesh Varrier; (L-R, top row) Kiran Ventrapragada and Ajay Pulpa.
Activecubes, which provides business intelligence and application development in addition to analytics, says it helps clients take better business decisions by validating expectations, analysing data that could be internal or from external sources, along with technology solutions.
The gap between actionable business insights and what traditional consulting was delivering prompted Varrier to start his business. In order to provide real value addition to the client, a firm needs to provide a combination of consultation, analytics, business intelligence and technology, he says.
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With offices in Bangalore, Detroit and Sydney, activecubes provides services for retail, financial services, consumer products, telecom, energy, health care and manufacturing firms. It has 10 clients, national and international, including Foster’s Group Ltd and ABnote Group (Australasia) Pty Ltd. Sales, marketing, risk management and operations are the key service areas for the self-funded firm. The duration of a service contract can range between six-eight weeks and six months to a year.
It counts Marketics Technologies Pvt. Ltd, MarketRx Inc. and Fractal Analytics Ltd as competition. But “very few firms offer a complete set of end-to-end services in analytics, ranging from business consulting to statistical analysis to technology…,” says Varrier. The firm, with 40 employees, had a revenue of less than Rs5 crore in the last fiscal, according to its details with the National Entrepreneurship Network; it expects to break even in the first quarter of fiscal 2010. Activecubes plans to have a venture capital funding round soon.
One challenge for activecubes is the number of players in the segment, an investor said. “A few clients could feel why they need to give business to the firm, which is small and relatively new in the segment,” said the Bangalore investor, requesting anonymity. Also, the current economic slowdown could be a barrier. “I am not sure how many companies would willingly spend on such services in the next one to one-and-a-half years,” the investor said.