KC boutique big data startup Yotabites planned its big exit for 2025 — a buyer came five years early
November 9, 2019 | Elyssa Bezner
Starting with a laser-focus on attacking big data’s fundamental problems, Lenexa-based Yotabites is announcing its acquisition from Oregon-based ProKarma, said Rajesh Nair, noting the sale fell many years ahead of schedule for the forward-thinking startup.
“It really started out as a combination of things for us: from [seeing a lack of] creativity in the big data in corporations, to this feeling of being undervalued, to this nagging question of, ‘Why can’t anyone get big data right?’” said Nair, CEO and cofounder of the big data consulting firm along with CTO Mani Raman.
Click here to learn more about Yotabites.
“We did exit planning very early on and our goal was for 2025. We wanted a company in the big data space but a much larger player with a similar customer base … [With ProKarma,] I think [they were] surprised at the abilities we were able to present in the big data space and I believe we had a common customer,” Nair added.
The larger engineering experience firm no longer has to point customers in different directions to fulfill those big data needs, he said, noting the sale amount remains undisclosed.
Click here to learn more about ProKarma.
“I think for them it was a [part of their] portfolio that they didn’t have and it would’ve taken much longer for them to build this out organically,” Nair said. “We took on the philosophy of ‘do one thing and do it right,’ and I think we were able to make a really strong customer base. I think that’s kind of what brought us to the notice of these other companies.”
The Yotabites team is expected to stay on with the company to work within ProKarma’s folds, added Raman, making the situation a mutually beneficial relationship where the larger company can also offer its structured back-end processes and the help of their other professional services.
“It’s really a win-win for both of us,” he said. “They were looking for someone to get through the big data services and we were looking for someone who can help us scale and grow much faster. It’s a perfect marriage.”
“Obviously we are feeling super happy and excited,” he added, laughing.
ProKarma has acquired several companies in recent years as well, Raman said, which initially excited the team about the prospective relationship.
“This is not new to them and that was a really good thing for us — especially [because] we reached that scaling problem,” he said. “They know the pains, they know the gaps, they know, ‘Oh, it can be done.’”
The team is anticipating filling those gaps for existing and new clients for their team as well as ProKarma throughout 2020 and beyond, he added.
“So it’s going to be a very fun and very busy few years — not just 2020! But the next few years,” Raman said.
2019 Startups to Watch
stats here
Related Posts on Startland News
Pipeline opens applications for 2019 fellowship class, reveals three-city 1MC pitch event
An application for Pipeline’s 2019 fellowship class isn’t just about next year, said Joni Cobb — it’s an opportunity for a lifetime of support from the organization’s network of developing and top-tier entrepreneurs. “Pipeline is available for life for each entrepreneur who successfully completes the fellowship year,” said Cobb, president and CEO of Pipeline, in…
Report: Black women’s impact overlooked in KC startup community and beyond
Raise a hand if you know that black women have created more than 1 million jobs, Dell Gines challenged. A statistics-based question –– frequently answered with an expected, yet glacial silence –– acknowledges an unprecedented phenomenon in both the small business community and within the confines of the often-exclusive startup ecosystem, said Gines, Federal Reserve…
‘Class reunion’ collides with newer generation at Top VC-Backed Companies celebration (Photos)
It was a night of old school collisions, said Adam Arredondo, bringing together founders, executives, investors and a curated group of younger startup leaders for Startland’s Top VC-Backed Companies celebration. “The energy in the room was palpable. Many people said it felt like a class reunion, which in a way it was,” added Arredondo, CEO…
Techweek KC addition: Smart City Innovation Workshop builds bottom-up brainstorming
Kansas City residents, entrepreneurs, corporate partners, and city officials plan to come together during the Smart City Innovation Workshop at Techweek KC to brainstorm solutions to day-to-day challenges using smart technology. The workshop pulls into Union Station Oct. 8 — the first day of Techweek KC, which runs through Oct. 12 and is presented by…