Is Your SaaS Company Ready for DI Gasell? Here’s What It Takes to Qualify

Qualifying for DI Gasell is a major achievement for any growing company in Sweden—have you ever wondered when your SaaS company can start to qualify?

Is your SaaS company on the fast track to DI Gasell status, or are you missing key growth benchmarks? Here’s what you need to know.

For SaaS companies, the challenge lies in balancing growth with profitability while scaling fast enough to meet the 10 million SEK revenue mark. But what exactly does it take to qualify for the first time?

In this article, I’ll outline the minimum standard that your SaaS company must meet to enter the competition, using the Rule of 40 as the key metric. This guide provides a roadmap for SaaS founders to achieve sustainable growth and meet DI Gasell’s requirements.

1. What is DI Gasell?

To qualify as a DI Gasell company, a business must meet these key criteria over the last four financial years:

• Doubling Revenue: The company’s revenue must have doubled over the last four years.
• Minimum Revenue: The company must have at least 10 million SEK in revenue in the most recent year.
• Positive Profit: The company must show positive operating profit in each of the last four years.
• Organic Growth: All growth must be organic—no mergers or acquisitions.
• Stable Finances: The company must have a healthy balance sheet, without major financial instability.
• At Least 10 Employees: The company must have at least 10 employees during the most recent year.

For SaaS companies, the challenge is balancing these requirements while scaling fast enough. This is where the Rule of 40 becomes critical.

2. The Rule of 40: The Key to Balancing Growth and Profitability

The Rule of 40 is a widely accepted metric that helps SaaS companies balance growth and profitability. It is calculated as:

\text{Rule of 40} = \text{Revenue Growth %} + \text{Profit Margin %}

A Rule of 40 score of 40 or higher is considered strong. However, for a company just starting out and aiming to qualify for DI Gasell, we’ll explore the minimum acceptable benchmark.

3. The Minimum Growth Profile for a SaaS Company to Qualify

To meet the DI Gasell criteria, a SaaS company needs to double its revenue over four years while maintaining positive profitability. Below is an example of a minimum standard a SaaS company must meet to qualify (I have assumed a modest profit level).

Revenue Growth & Profit Margin Benchmarks (2020-2023):

• Revenue Growth Rate: A consistent growth rate of 25% each year is needed to meet the requirement of doubling revenue over four years.
• Profit Margin: To fulfill the positive operating profit requirement, the company must maintain a modest 3% profit margin each year.

4. Financial Profile Example for Minimum Gasell Qualification

The table below shows a minimum growth profile for a SaaS company aiming to qualify for DI Gasell, starting with 5 million SEK in revenue in 2020 and growing to 10 million SEK by 2023, while maintaining a 3% profit margin each year:

With 25% revenue growth and a 3% profit margin, the company achieves a consistent Rule of 40 score of 28 each year, which meets the minimum threshold for balancing growth and profitability.

5. How Does This Meet the DI Gasell Criteria?

By maintaining 25% growth and a 3% profit margin, a SaaS company ensures that it meets the following DI Gasell criteria:

• Doubling Revenue: Over four years, the company will have doubled its revenue from 5 million SEK in 2020 to 10 million SEK in 2023.
• Positive Profitability: The company maintains a modest profit margin each year, ensuring that it remains profitable while scaling.
• Rule of 40: With a consistent Rule of 40 score of 28, the company demonstrates balanced growth and operational sustainability, which is critical for long-term success.

This profile represents the minimum hurdle a SaaS company must clear to qualify for DI Gasell for the first time.

6. Why the Rule of 40 Matters

The Rule of 40 isn’t just a number—it’s a strategic tool. It forces SaaS companies to balance rapid revenue growth with financial sustainability. For founders, understanding and optimizing this metric ensures that your company grows responsibly, meets investor expectations, and qualifies for recognitions like DI Gasell.

A consistent Rule of 40 score of 28 is a solid benchmark for emerging SaaS companies. While it’s lower than the ideal score of 40, it represents the minimum acceptable level to qualify for Gasell while still maintaining financial health.

Conclusion

Achieving DI Gasell status is about more than just revenue—it’s about balancing growth and profitability in a way that sets your SaaS company up for long-term success. By focusing on the Rule of 40 and hitting a consistent score of 28, your SaaS business can meet the minimum standard required to qualify.

Ready to take the next step? In the next article, I’ll explore how SaaS companies can optimize their growth strategy and push their Rule of 40 closer to 40 for even stronger results. We will even start to explore what impact this has on valuation.

How Ready Is Your SaaS Company for Growth and Valuation Success?

Is your SaaS company ready to meet the minimum standards for DI Gasell? Are you balancing growth and profitability effectively with the Rule of 40? More importantly, what is your company’s valuation potential if you can hit these benchmarks?

At Scalex, we help SaaS companies design for success—ensuring you not only qualify for prestigious awards like DI Gasell but also maximize your company’s value. Ready to rethink your company design for sustainable growth and optimized valuation?

Comment below or DM me if you’d like to talk more, and let’s schedule a 15-minute diary check-in to discuss how you can take your SaaS business to the next level.

All the best

Ashley

#SaaS #BusinessGrowth #DIGasell #Entrepreneurship #Valuation