Innovation from the outset

It seems like a lifetime ago considering just how much they’ve achieved in the years since, but Roneel and Karishma Kumar only took the leap to form Cognitiv back in 2018. Six years on, it’s a business that has become an industry force, developing software solutions with broad commercial appeal. Yet like so many successful startups, it was forged in humble beginnings.

“Karishma and I had both reached a point in our careers where we were looking for that next step,” Roneel remembers. “And that next step was either to continue climbing the corporate ladder, or instead to use the opportunity to try something on our own.”

In those formative days, the main focus for Cognitiv was to set up basic systems and provide standard IT services to customers. Something many other businesses were already doing in that space. But both Roneel and Karishma knew they wanted to have a bigger impact. They wanted to do something different from the standard ways of working that most software service providers were settled into. So, they started to build out their brand offering until they found their niche.

Product evolution and personalised service

Soon enough, Cognitiv was no longer “just another IT services provider” in a hypercompetitive space. Roneel and Karishma had shifted their focus to developing products that would solve specific industry problems. “If somebody’s got an idea, they come to us and we turn that idea into reality,” Karishma says.

“There are a lot of software service providers out there who will take your requirements and build exactly to that specification” Roneel says. “However, our point of difference is that we not only work with you to solve your problems, but we build a software product that can then solve an industry problem. So, you end up with your problem solved and then a potential revenue stream going forward.”

Karishma remembers one particular project for an insurance broker platform, Folio, where Cognitiv built the initial web application and mobile application.

“When we first started with Folio, we had a minimum viable product,” she says. “We gave them something they could take to their users and onboard their brokers onto their platform. Then, after getting some really good, constant feedback, we came up with a way to keep enhancing the products.”

Every fortnight, Folio and Cognitiv team members take on new feedback, tweak the apps and then releases them to users. It’s gotten to the point where not only are Folio Brokers using the platform but brokers throughout New Zealand are using the platform.

Growing as a brand

Roneel and Karishma have always been proactive about hiring. They love bringing on employees with diverse backgrounds and complementary skill sets.

“We weren’t shy about bringing people on board because we knew we couldn’t do it alone,” Roneel says. “So while we had already secured some contracts to start our business and had some capital that we could have banked ourselves, we decided to reinvest everything in Cognitiv’s growth.”

Making the decision to pour capital directly into hiring was a big turning point. Cognitiv could transition from being a standard service provider to a product-first operation. And that meant they could easily stand out in a crowded market.

“We now have software developers, testers, and customer care support staff to complement us, being there to manage the client relationships and drive more sales into the business,” Karishma says.

How Prospa became Cognitiv’s catalyst for success

Prospa’s funding has been instrumental for Cognitiv’s growth. Karishma and Roneel found the application process easy and noted how the speed of the funds hitting their account has been a game changer for their business.

“The customer experience with Prospa is just leagues ahead of anything else,” says Roneel. “There’s the digital-user experience around simply providing them with our bank details and signatures. They’ll also call out and arrange a time that works for us – I’ve had conversations with Prospa at 8pm here in New Zealand, so that’s been really helpful.”

The funding has helped Cognitiv say “yes” to so many ambitious projects. They’ve also used Prospa to manage their cash flow during growth phases. “Having access to funds allowed us to kick off projects that might have disappeared otherwise,” he says.

Karishma adds that the quick transfer of funds lets them take care of internal projects too. “We saw a gap in the market for a digital networking platform, and so we wanted to trial that. But obviously when you ask your team members to work on your internal project, that work is not chargeable. So that’s something we use the funding for – to test the idea and do some R&D.”

The very real impact on cash flow

One of the biggest benefits Cognitiv has enjoyed from Prospa is the improved cash flow management. As small business owners, Roneel and Karishma are no strangers to delays in client payments, which can very quickly strain their own finances. But Prospa funding gave them a buffer to cover business-critical expenses and keep their operations running smoothly.

“Prospa’s funding rescued us when we had delayed client payments,” says Karishma. “They are like a strategic partner fulfilling the promise that traditional banks make.”

“Prospa’s funding rescued us when we had delayed client payments,” says Karishma. “They are like a strategic partner fulfilling the promise that traditional banks make.”

Having this behind-the-scenes support means Cognitiv can maintain great relationships with their suppliers and clients without having to worry about the money side of things.

Need flexible access to funds that could help your business grow? Speak with one of our small business lending specialists.