#2293 $2 million / year AI engineering firm - Startup Stories - Mixergy Recap

Podcast: Startup Stories - Mixergy

Published: 2026-01-12

Duration: 0 min

Summary

Tarun Thumala, founder of PressW, discusses how his AI engineering firm generates over $2 million annually by developing custom AI applications for clients. He emphasizes the importance of relationship-based customer acquisition and adapting service models to the evolving AI landscape.

What Happened

In this episode, Tarun Thumala shares the journey of PressW, his AI engineering firm that creates tailored AI software for various clients. With a remarkable revenue of over $2 million last year and projected to match that this year, PressW focuses on developing custom applications to enhance internal operations and workflows for businesses. Tarun explains that their work often involves automating complex processes, such as document handling for background checking companies, where they achieved an impressive automation rate of 90-95%. This efficiency not only streamlines operations but also saves clients significant time and resources.

Tarun reflects on the challenge of pricing their services in a way that aligns with the value they provide. Traditional hourly billing models present difficulties as improving efficiency could reduce earnings per project. Instead, he discusses their shift towards fixed fee models and a forward-deployed engineer approach, ensuring clients pay for dedicated expertise rather than just time. He highlights the importance of understanding client needs and the specific context in which AI operates to deliver effective solutions.

The conversation also delves into how PressW acquired its first customers—primarily through relationships and networks. Tarun recounts that much of their early work came from former connections, emphasizing the role of trust and previous collaboration in securing projects. As they established a foundation, they began to be more selective about the work they took on, focusing on projects that aligned with their expertise and strategic goals.

Key Insights

Key Questions Answered

How did PressW achieve over $2 million in revenue?

PressW's revenue success is attributed to its focus on providing custom AI applications that enhance internal operations and workflows for clients. By automating complex processes, such as document handling for background checks, they have significantly increased efficiency, which in turn has attracted more business. Tarun emphasized that their approach to tailoring solutions for specific client needs has been key to their financial growth.

What unique challenges does PressW face in pricing its services?

Tarun discussed the complexities of pricing in a consulting environment where traditional hourly rates can hinder profitability, especially as the team becomes more efficient. To combat this, PressW has moved towards fixed fee models and a forward-deployed engineer strategy, allowing them to offer dedicated support while ensuring clients pay for the value delivered rather than just time spent.

What role do relationships play in PressW's customer acquisition?

Relationships are crucial for PressW, as Tarun noted that their first customers primarily came from existing networks and past collaborations. The firm relies on trust built through previous work experiences, which allows them to secure projects more easily. This network-driven approach has been fundamental to their early growth and continues to guide their customer acquisition strategy.

How has the AI landscape influenced PressW's service delivery model?

Tarun highlighted that the delivery model for AI services is evolving due to the complexity and context-dependent nature of AI technology. Unlike traditional software, AI requires extensive professional services to ensure it meets organizational needs. This realization prompted PressW to adopt a service-oriented model that allows them to stay agile and responsive to industry changes while maximizing their understanding of client operations.

What is the significance of custom AI applications for businesses?

Custom AI applications are significant for businesses because they provide tailored solutions that enhance productivity and streamline operations. Tarun explained that many companies struggle with unstructured data and inefficient workflows, and PressW's ability to automate these processes leads to considerable improvements. By addressing specific business challenges through customized software, PressW helps clients achieve more efficient and effective operations.