SaaS startup InVideo was on the brink of shutting down. By mid-2021, its growth had plateaued, and despite raising $53 million in funding, the company struggled to scale. For nearly 15 months , revenue remained stagnant. The old product—InVideo Studio—was gaining traction at a much slower rate.
Then came the pivot. In mid-to-late 2022, InVideo launched an entirely new AI-powered product, InVideo AI, marking a turning point for the company. This transition wasn’t just a survival tactic—it was a transformation. The AI-driven video creation platform took off, helping InVideo break past its slump and achieve $70 million in annual recurring revenue (ARR).
“By mid-2021, we had started to plateau. From 2021 through 2023, we weren’t growing, we were on the brink of shutting down, that’s when we launched an entirely new product. The new product took off. InVideo AI was launched around August of 2023, and that’s where the magic happened,” said Sanket Shah, co-founder of InVideo to Moneycontrol.
Today, InVideo is one of the largest Indian customers of OpenAI, Anthropic, Google, and ElevenLabs, leveraging cutting-edge AI to fuel its rapid growth.
With $70 million in annual recurring revenue (ARR), the company has secured a global foothold, proving that AI-driven content creation is not just a passing trend but an essential tool for small business founders, content creators and individuals alike.
Yet, for Shah, this milestone is only part of the journey—InVideo is still in search of its extreme product-market fit (PMF), a pursuit that continues to shape its culture, strategy, and hiring approach.
The Genesis of InVideo
Founded in 2017 by Sanket Shah, Anshul Khandelwal, Panket Shah, and Harsh Vakharia, InVideo was born out of a realisation that video creation remained complex, time-consuming, and inaccessible for non-professionals.
At the time, most available software catered either to high-end professionals or casual social media users, leaving a wide gap in the middle.
With an initial focus on simplifying the video creation process for businesses, marketers, and content creators, InVideo leveraged AI to automate tasks like script-to-video generation, scene transitions, and voiceovers.
This AI-first approach set the company apart early on, making it an attractive alternative to established players like Adobe Premiere Pro and Final Cut Pro, particularly for those who lacked technical expertise.
“Many thought that Invideo will face disruption post Covid-19 pandemic when many content creators also went down, but that is not the case. The company was able to find a new use-case, among new customer base especially in the US,” an investor of Invideo said.
The company crossed $20 million in ARR by 2023, followed by $55 million in early 2024, before reaching the $70 million milestone in 2025.
“We are right now focussed on extreme PMF (Product Market Fit). I don’t think we are actively looking to raise a round. We do get a lot of interests,” Shah told.
A hacker mindset to hiring and scaling
As InVideo scaled, its hiring philosophy remained unconventional. Shah has built a team driven by what he calls a “hacker mindset”—people who move fast, solve problems on the fly, and don’t get bogged down by bureaucracy or traditional corporate structures.
“We actually have a hacker culture right now,” he says. “Hackers don’t say, ‘Oh, but how will we scale?’ They just connect the dots, ship things, and move fast.”
This hacker mentality has helped InVideo iterate rapidly and launch new features at an aggressive pace, something critical in an industry where customer expectations evolve quickly.
For Shah, hiring isn’t just about experience; it’s about finding people who can take ownership, think independently, and deliver results without excessive oversight.
The growing demand from entrepreneurs
One of the biggest catalysts for InVideo’s growth has been its strong appeal to entrepreneurs and small businesses. The rise of social media, influencer marketing, and digital-first branding has created an urgent need for high-quality, engaging video content. Traditional video production, with its high costs and long turnaround times, is no longer viable for many entrepreneurs operating in fast-moving markets.
“InVideo is like a glass of cold water to someone in hell,” Shah quips, referring to how small businesses struggling with video creation find immense value in the platform. With AI-powered automation, users can generate high-quality videos in minutes, significantly reducing both effort and cost.
Beyond just ease of use, InVideo’s business model has also resonated with entrepreneurs. Unlike software that locks users into expensive subscriptions with steep learning curves, InVideo offers a freemium model that allows users to experience its capabilities before committing to a paid plan. This approach has driven strong organic adoption and high retention rates.
The relentless pursuit of product-market fit
Despite its impressive revenue figures, Shah insists that InVideo has not yet reached its ultimate PMF. While the company has found success in multiple customer segments, he believes there is still room for refinement, iteration, and deeper market penetration.
“There’s a point where, when I sleep, the company still keeps growing,” he says. “That’s extreme PMF. We’re not there yet.”
For Shah, true PMF isn’t just about revenue growth; it’s about a product that scales effortlessly, requires minimal intervention, and becomes a necessity rather than a choice for its users.
Every product decision at InVideo is evaluated with this lens, ensuring that the company isn’t just reacting to market trends but actively shaping the future of video creation.
The road ahead
As InVideo continues its trajectory, challenges remain. The AI landscape is evolving rapidly, and competition from both emerging startups and established tech giants is intensifying. Additionally, content moderation and AI ethics present ongoing hurdles—Shah acknowledges that ensuring responsible AI use is a priority, especially as the platform scales globally.
Yet, with a strong foundation, a hacker-driven culture, and an unwavering commitment to solving real problems, InVideo is well-positioned for the next phase of growth. Whether it’s expanding into new markets, refining AI-driven capabilities, or doubling down on its entrepreneurial user base, the company’s journey is far from over.
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