Three University of Michigan students have created Channels Inc., a communication system for physical workers. They are already building big clients in the event management sector.
After meeting in events and retail, Siddharth Kaul (18 years old) and Elan Rosen (20 years old), founded the company with Ibrahim Mohammed (20 years). It boasts names such as Marriott Hotels and announced a $520,000 seed round led by Sahra Growth Capital to provide it with nearly $570,000 in total funding.
Kaul was raised in Dubai and Kuwait, and began to notice a delay in events. He also noticed that many processes were being completed on paper.
Kaul explained to TechCrunch that the technology available was not compatible and made it difficult for physical workers, who were unable to perform their tasks. It was evident in the event management industry, where workers had to coordinate across technology.
Slack and other legacy communication platforms such as Slack can aggregate communications but are better suited for remote workers. Physical workers, however, will rely more heavily on text communication. Texting has the drawback that you must scroll to see the next message. Old communication can also be lost in the shuffle of replies.
The platform was created for small hotels and was intended to assist them in their transition to digital. It also allows for communication in non-chronological orders that makes it easier to find, facilitate discussion, and searchable. The SaaS platform allows users to create live personnel maps, which can be used to track progress and prioritize alerts.
After one of its employees saw that the Channels platform was being used at an event, Marriott became a client. He noticed employees taking out their phones, and asked the manager about it. Kaul explained that they were testing the product.
Kaul stated that they believed it was communication. Even though employees were checking their phones frequently, it was fast and efficient and they remained attentive.
Channels offers a solid platform for analytics and graphical representation. This is a selling point for customers and can lead to initial traction for the company. Rosen stated that he hopes Channels will be able to achieve the convention level Rosen is hoping for.
This funding will be used for development growth and to bring in additional engineers to the team. It will also allow Kaul, Rosen, and Mohammed to continue their studies. Mohammed will work full-time. They are looking to increase their recurring revenues in the Middle East and build up operations in America.
Sahra Growth Capital's managing partner Jamal Al-Barrak said Channels had been on his firm's radar since the winning of the 2020 Dubai X-Series competition. He was able to visit the founders multiple times and hear their growth after winning the competition.
Sahra does not typically invest in Channels companies but started a seed-sourcing effort to make investments between $200,000 and $800,000. Channels was one of the first to benefit from this effort.
Channels was one of our first investments in the initiative. They look very promising so far, even compared with our investments before this initiative began, Al-Barrak stated. He appreciated the founders' work ethic and their emphasis on the event industry which he described as outdated and lacking technological innovation.
Sid, Elan, and Ibrahim are among the most brightest entrepreneurs I've ever seen. I have also invested in more than 25 startups in technology, he stated. They had proof of concept, a customer base, and revenue. Their vision, beyond their current industry, impressed me the most. They want to communicate with all workers, regardless of whether they are in events or retail.
