Text Magic
About the Company
TextMagic is a software-as-a-service (SaaS) company that offers SMS marketing solutions to businesses across multiple regions, including the US, UK, Europe, Canada, and Australia. The platform enables businesses to communicate with customers through text messages, manage marketing campaigns, and automate communications. Since its inception in 2001, TextMagic has expanded its customer base to a diverse range of businesses, from small operations to large-scale enterprises, providing them with tools to send messages effectively and efficiently.
The company initially offered a simple desktop SMS application but has since evolved into a comprehensive web app with features driven by customer feedback. TextMagic's revenue grew steadily over the years, reaching almost €11 million in 2021. The business caters to various industries, helping them optimize customer interactions through streamlined SMS communications.
Idea Behind Company
TextMagic was originally founded as a side project targeting the UK market with limited product offerings. Vaikmaa, a tech enthusiast with a background in customer relationship management (CRM), joined the company in 2007. Drawing from his experience in technology and CRM, he saw the potential to grow the business by expanding its product line and customer base.
Vaikmaa's vision was rooted in enhancing how businesses communicate with their customers, capitalizing on the burgeoning SMS technology. He recognized the scalability of the platform and directed efforts toward keeping up with technological trends while improving user experiences. His background in technology enabled him to build on the existing product, enhancing it to cater to a broader, global audience.
Creating the Company
The development of TextMagic’s SaaS platform involved a customer-first approach. One of the early goals was to transition from a basic desktop app to a more versatile web-based application. Vaikmaa and his small team of developers focused on usability and customer feedback to guide the platform’s design and functionality. Merging back-end infrastructure with user-facing interfaces was key to the company's early growth.
The development cycle was iterative, involving constant prototyping and testing, and customer feedback played a crucial role in shaping the product. Features such as SMS chat, mobile apps, and automation were implemented based on user requests. The TextMagic team prioritized adaptability, continuously refining the platform to improve its ease of use and to integrate new features that aligned with customer demands.
Launching the Business
The key to attracting and retaining customers for TextMagic has been its focus on educational content, SEO strategies, and high-quality customer support. Vaikmaa’s team created guides and video tutorials that helped customers maximize the value of their subscriptions, which ranged from simple SMS setups to complex marketing campaigns.
Search engine optimization (SEO) and content creation were also critical strategies for growing the business. TextMagic invested heavily in understanding search queries and competitor performance, optimizing their online presence to drive organic traffic. These efforts were complemented by paid marketing, ensuring that TextMagic’s products remained visible to potential customers. Retaining customers was largely about reliability; the team constantly refined the platform to ensure it worked seamlessly while remaining cost-effective.
Earnings
As of 2021, TextMagic reached approximately €11 million in revenue, with monthly earnings around $1.2 million. Vaikmaa credits the company’s success to its customer-centric approach, consistent product improvements, and a reliable platform. In 2021, TextMagic took a significant step by going public with an IPO on the Nasdaq First North Tallinn exchange, raising €49.5 million.
Vaikmaa’s focus has since shifted to expanding TextMagic’s product offerings with Touchpoint, an all-in-one business platform that includes multi-channel marketing tools and CRM solutions. The goal is to diversify beyond A2P SMS services and position TextMagic as a leader in broader business communication and management solutions.
