From $0 to $Billion using PLG Strategy

Do you know how some brands burst out of nowhere but are very popular and you haven't seen any of its advertisements on social media or TV?

Imagine growing your business simply by letting your product speak for itself. That’s exactly what most of these brands do and how Darwinbox did it.

Darwinbox is a leading HR software platform, turned into a billion-dollar unicorn 🤫 They have rapidly entered 90+ countries, serving millions of users just by adopting a product-led growth strategy.

What is product-led growth or PLG strategy? and
How did Darwinbox use it to become an unicorn?

Let's see...

Product-Led Growth & Why?

Product-led growth (PLG) is a strategy where the product becomes the main way to attract, keep, and grow users. Instead of relying on heavy sales or marketing efforts, companies let users use the product directly.

This strategy puts the product at the center of the business. If they like it and find it easy to use, people will want to use it more, tell others about it, and become loyal customers.

Why does PLG work? Here are the key reasons:

1. Users get to try before they buy

PLG allows your leads to see the product’s value upfront. With free trials, demos, or freemium models, they experience the product without any commitment. This reduces the risk for customers, making them more likely to trust and invest in the product later.

2. Focusing on user experience

PLG emphasizes creating a product that’s easy to use and solves real problems. Users stay when they find the product valuable and intuitive. An easy-to-use product means fewer barriers for new users, leading to higher adoption rates.

3. Viral growth through easy shareablity(Growth Loops)

A strong PLG strategy focuses on making the product very easily sharable. When your user recommends your product to colleagues or friends, that creates a natural cycle or loop of user growth.

4. Data-driven improvements

Companies using PLG often collect real-time data on how users interact with the product. Doing so helps them continuously improve the product based on user behavior and needs, leaving users more satisfied and boosting retention.

So, here’s a detailed video explaining how PLG works.

Companies using PLG grow 2-3 times faster than those relying only on traditional sales-driven strategies. In the SaaS world, PLG works because it aligns with how modern customers want to experience products.

People now prefer trying a product before paying for it and are more likely to trust it when it delivers value. This approach is quite profitable for software companies like Darwinbox.

Darwinbox has grown its user base and brand recognition by focusing on creating a product that users love. But how did this Indian software company, which we hardly heard about, become a top player's favorite?

PLG & Darwinbox

Darwinbox is a cloud-based Human Resources (HR) software company that helps businesses manage hiring, payroll, performance reviews, and employee engagement.

The company started in 2015 and saw a huge success with a product-led growth strategy. Here’s how Darwinbox used its product to grow.

But before, here’s the introductory video of Darwinbox:

1. Understood the market need

Many businesses face challenges in managing their HR tasks efficiently. Existing HR systems were often outdated, complicated, and hard to use.

Darwinbox realized that companies needed a modern, easy-to-use platform to manage HR functions smoothly. Instead of focusing on sales, Darwinbox let the product speak for itself. They focused on building a platform that solved real problems for HR teams.

2. Offered interactive demo sessions

Darwinbox introduced interactive demo and product tour sessions for its potential customers. They walked firms through Darwinbox’s features, such as payroll management, employee performance tracking, and recruitment tools, for free before purchasing.

By allowing businesses to see the platform, Darwinbox showed the value of their product firsthand. According to industry research, offering free trials (or demo sessions) can increase user sign-ups by 25%. For Darwinbox, this approach led to notable user growth.

3. Introduced value-added features

Darwinbox focused on creating strong features that helped HR teams work faster and more effectively. Some of the standout features include:

• AI-powered insights: Darwinbox generates data-driven insights to help managers make better decisions about their workforce.

• A cloud-based platform: This lets companies access the platform from anywhere, making it ideal for remote or hybrid workspaces.

• Easy integration: Darwinbox easily integrates with other business software, making it flexible for companies already using multiple tools.

These features helped businesses simplify their HR processes, making Darwinbox a valuable solution for large enterprises like Nivea, Adani, and Kotak Mahindra Bank.

4. Simplified onboarding experience

Another key to Darwinbox’s success was its smooth onboarding process. Many software platforms lose customers during onboarding because the process is too complicated.

Darwinbox ensured that once a company signed up for a free trial, they were guided through the setup with tutorials and support, helping them get started without confusion.

Research shows that 86% of customers are willing to pay more for a better onboarding experience, and Darwinbox used this to its advantage.

5. Focused on user-driven growth

Darwinbox’s PLG strategy worked well because satisfied users spread the word. As firms used the product, they saw the benefits, like reduced HR workload and better employee management.

All this led to word-of-mouth recommendations, further growing Darwinbox’s customer base without the need for aggressive sales pitches. Here’s a video explaining the implementation of Darwinbox’s HR framework:

You know? Darwinbox outgrew India, expanding into Southeast Asia and the Middle East, making it one of the fastest-growing HR platforms in those regions.

Darwinbox is not the only company using a product-led growth strategy. We also have Zerodha, Kissflow, Webflow, Airtable, and Notion.

Trust me when I say Darwinbox is so good and simple that almost most of my internships when I started as a writer involved this software product as an onboarding platform.

From uploading legal documents to getting paid and marking daily attendance to seeing the company hierarchy, Darwinbox was just amazing.

Did you use Darwinbox anytime as a business owner or an employee?

Results

• Since adopting the product-led growth strategy, Darwinbox has consistently grown its user base by 25% year-on-year, making it one of the fastest-growing HR SaaS platforms in the world.

• Darwinbox has a retention rate of 98%. Almost all of its customers stick with the platform once they use it. In early 2022, Darwinbox raised $72 million in funding, pushing the company’s valuation to over $1 billion, officially making it a unicorn.

• Darwinbox has expanded its operations beyond India into Southeast Asia, the Middle East, and other international markets, which is a dream for many Indian brands.

Conclusion

Darwinbox’s product-led growth strategy brought impressive user growth, high retention rates, and global expansion. While the strategy aside, all this was possible because Darwinbox focused on delivering real value. Its success shows us the importance of letting the product shine using customer feedback and customizing solutions.

However, the PLG strategy is not a one-size-fits-all approach. Its effectiveness depends on various factors like the product's value proposition, target market, and the competition in the industry.