InVideo, once on the brink of shutting down, has made a remarkable comeback, reaching $70 million in annual recurring revenue (ARR) through its strategic shift to AI-powered video creation. The Mumbai-based startup struggled for nearly two years, with its growth plateauing despite securing $35 million in funding. However, the launch of InVideo AI in mid-to-late 2022 marked a turning point, enabling the company to regain momentum and expand its global footprint.

Today, InVideo stands as one of the largest Indian customers of OpenAI, Anthropic, Google, and ElevenLabs, leveraging cutting-edge AI models to fuel rapid growth. Despite this success, co-founder Sanket Shah believes the company has yet to achieve its “extreme product-market fit (PMF),” a goal that continues to shape InVideo’s strategy, culture, and hiring approach.

The Struggle Before the Pivot

Founded in 2017 by Sanket Shah, Panket Shah, and Harsh Vakharia, InVideo was created to simplify video creation for businesses, marketers, and content creators. Initially, the company gained traction by automating tasks like script-to-video generation, scene transitions, and voiceovers, making it a compelling alternative to tools like Adobe Premiere Pro and Final Cut Pro.

However, by mid-2021, growth had stalled. Despite securing millions in funding, revenue remained stagnant, and the original product—InVideo Studio—was not scaling fast enough. Many feared the startup wouldn’t survive, especially as content creation trends shifted post-pandemic.

The Game-Changing Pivot to AI

Realizing the need for a drastic change, InVideo launched InVideo AI in late 2022, a move that transformed the company’s trajectory. This AI-powered platform automated the entire video creation process, allowing users to generate high-quality videos effortlessly.

The results were immediate:

• ARR jumped from $30 million in mid-2022 to $50 million in early 2023, reaching $70 million in 2024.

• InVideo attracted a new customer base, especially in the US, where demand for AI-driven content creation surged.

• The startup cemented itself as a leader in AI-powered video editing, partnering with OpenAI, Anthropic, Google, and ElevenLabs to enhance its capabilities.

“By mid-2021, we had started to plateau. From 2021 through 2023, we weren’t growing, we were on the brink of shutting down,” said Shah. “That’s when we launched an entirely new product. The new product took off. InVideo AI was launched around mid to late 2022, and that’s where the magic happened.”

A "Hacker Mindset" to Scaling and Hiring

To maintain its rapid growth, InVideo adopted a unique approach to hiring and scaling. Shah describes the company’s culture as a "hacker culture," where employees are expected to move fast, take ownership, and iterate rapidly without getting bogged down by corporate bureaucracy.

What Sets InVideo’s Hiring Apart?

• Speed and Execution: Employees are encouraged to "connect the dots, ship things, and move fast."

• Problem-Solving Focus: Rather than hiring based solely on experience, InVideo seeks individuals who take ownership and work autonomously.

• Innovation-Driven: The team prioritizes rapid feature launches and continuous AI improvements to stay ahead of the competition.

This hacker mindset has been critical in helping InVideo develop and scale its AI-powered platform at an aggressive pace.

Why Entrepreneurs and Small Businesses Love InVideo AI

The rise of social media, influencer marketing, and digital-first branding has increased the demand for high-quality video content. Traditional video production is expensive and time-consuming, making it impractical for many small businesses and entrepreneurs.

What Makes InVideo AI Stand Out?

• Ease of Use: AI-powered automation allows users to create professional videos in minutes, eliminating the need for complex editing skills.

• Freemium Model: Users can test the platform for free before upgrading, driving strong organic adoption and high retention rates.

• Cost-Effective: Unlike subscription-based software with steep learning curves, InVideo provides affordable, scalable solutions tailored for startups and creators.

"InVideo is like a glass of cold water to someone in hell," Shah quips, highlighting how the platform provides an essential service for struggling content creators.

The Ongoing Pursuit of Extreme Product-Market Fit

Despite its impressive revenue growth, Shah insists InVideo hasn’t yet reached its ultimate PMF. While the company has found success across multiple customer segments, it continues to refine its product, aiming for a point where growth happens organically without intervention.

“There’s a point where, when I sleep, the company still keeps growing,” says Shah. “That’s extreme PMF. We’re not there yet.”

Future Goals for InVideo

1. Further AI Enhancements: Continuously improving automation and video generation capabilities.

2. Market Expansion: Strengthening its global presence, especially in the US and Europe.

3. Sustainability and AI Ethics: Ensuring responsible AI use while addressing concerns like content moderation.

The Road Ahead for InVideo

As competition in AI-driven content creation intensifies, InVideo remains focused on staying ahead through innovation and rapid execution. The company’s ability to pivot, iterate, and scale has already proven invaluable, and its next phase of growth will be shaped by further AI advancements, global expansion, and deeper customer engagement.

With its hacker-driven culture, relentless pursuit of PMF, and strong partnerships with AI leaders, InVideo is well-positioned to dominate the AI-powered video creation market in the coming years.

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