In a move that has captured the attention of the startup world, Kovai.co, an AI startup based in Coimbatore, India, has distributed ₹14 crore in bonuses to its 140 employees. This extraordinary act highlights the company's commitment to its employees and sets a new standard for employee appreciation in the startup ecosystem.
Kovai.co: A Leader in B2B SaaS Solutions
Founded in 2011 by Saravana Kumar, Kovai.co specializes in providing business-to-business (B2B) software solutions. The company's suite of products includes Turbo 360, Document 360, and BizTalk 360, designed to streamline operations and enhance productivity for its clients.
Turbo 360 helps businesses reduce cloud costs, Document 360 aids in creating and managing help pages, and BizTalk 360 integrates backend applications. Kovai.co's impressive clientele includes industry giants such as BBC, Boeing, and Shell.
Saravana Kumar's Vision
Saravana Kumar, a native of Coimbatore, spent a decade working in IT in London before identifying a gap in the market and returning to his hometown to launch Kovai.co. The company operates as a bootstrapped startup, without external funding. Kumar's vision extends beyond financial success; he aims to foster a culture of shared prosperity and reward employee loyalty.
"Together We Grow"
In 2022, Kovai.co announced the "Together We Grow" initiative, promising employees a bonus equivalent to six months' salary if they remained with the company for three years. In January 2025, Kumar fulfilled this promise, distributing ₹14 crore to 140 employees.
This decision reflects Kumar's belief in tangible rewards over traditional stock options, which he considers "paper money" until a company secures external funding or goes public.
Financial Success & Future Goals
Kovai.co has achieved significant financial milestones, with an annual revenue of $15 million and an estimated value of $100 million. Kumar's ambition is to reach $100 million in revenue by 2030 and elevate Kovai.co to unicorn status.
This accomplishment demonstrates the potential of bootstrapped startups in India's thriving tech industry. Kovai.co's success serves as an inspiration for startups, illustrating the importance of valuing employees and fostering a culture of loyalty and shared success.
