From Ping Pong to Prosperity: How Automation Catapulted Our Startup to a $50M Valuation in Just 5 Years

In 2019, while working as an equity research analyst at UBS, I realized the struggle of finding ping pong facilities in New York City. This inspired me to create PingPod, an innovative solution offering 24/7 on-demand ping pong facilities that operate without full-time staff.

The Experience Economy

We live in a world where experiences are prioritized over goods. A significant portion of the American population values experiences, and our autonomous model leverages this trend to provide affordable access to ping pong in urban areas.

Starting with a single location in Manhattan, we have now expanded to 18 PingPod outlets across the U.S. Our model enhances user experience by allowing customers to book and unlock venues through a smartphone app, significantly reducing operational costs and increasing availability.

Building a Tech-Driven Business

Our journey led to the establishment of PodPlay Technologies, a SaaS subsidiary that licenses our technology to various sports venues. Currently, over 70 venues utilize our system, catering to multiple sports including billiards and soccer.

In March 2022, we secured $10 million in VC funding, boosting our expansion efforts. Our revenue has grown from $3.6 million last year to an expected $6 million this year, leading to a valuation of approximately $50 million.

Scaling with Technology

With locations in major cities like New York, Philadelphia, and Miami, our autonomous operations powered by PodPlay facilitate rapid growth. We are transforming urban retail spaces into experience-focused venues, catering to the digital-first lifestyle of younger generations.

Cost Efficiency

Our autonomous model not only reduces labor costs but also addresses the high rent prices in urban areas. By minimizing staffing needs, we achieve over 40% operating margins in our top-performing Pods.

Customer Safety and Experience

Safety is our priority; all PingPod locations are locked by default, accessible only through reservations. Additionally, we employ a dedicated video-monitoring team to ensure customer security.

The seamless customer experience we offer includes integrated audio-visual components, gamifying the ping pong experience. Features like instant replay allow players to relive their best moments and share them on social media, enhancing community engagement.

Since our launch, we have welcomed over 100,000 customers and facilitated more than 260,000 hours of play, fostering connections within communities.