From DEI Tech to HR Analytics: Inside Included AI’s Pivot to Find Product-Market Fit

Sometimes the most successful pivots don’t come from founder intuition – they come directly from customer demands. In a recent episode of Category Visionaries, Included AI CEO Raghu Gollamudi revealed how an economic downturn forced them to rethink their entire approach to the market.

The Origin Story

Included AI’s journey began with a clear mission following the George Floyd tragedy. “When I sold my previous company to one trust and I was thinking of what I need to do next. That coincided with George Floyd’s murder. And I saw how the nation stepped up against it,” Raghu shared. The moment sparked a mission to make a difference in the DEI space.

Initial Success in DEI Recruitment

The company’s first product focused exclusively on improving diverse hiring outcomes. The results were impressive: “Our customers saw a 30% increase in offers per woman within like 1st 90 days of using our product,” Raghu noted. They had found clear product-market fit – or so they thought.

The Market Forces a Rethink

Then came the economic downturn. Suddenly, their customers stopped hiring altogether. But instead of spelling disaster, this challenge led to an unexpected opportunity. Their customers came back with a new request: “Can you do the same thing that you did for recruitment, for retention and calibration for employees?”

The Pivot to HR Analytics

This customer feedback led to a crucial insight: “DI tech by itself does not make sense because DI tech needs to be embedded into the HR analytics aspect,” Raghu explained. The company realized that DEI shouldn’t be a standalone solution but rather an integral part of broader HR analytics.

Executing the Transition

The expansion into HR analytics wasn’t just about adding features – it required rethinking their entire approach to the market. They discovered that by embedding DEI into broader HR analytics, they could actually achieve their original mission more effectively while accessing larger budgets: “DI leaders are able to now piggyback on the budget that is available under CHROs and VP of talent.”

The Power of AI-Driven Insights

Their new approach revealed insights that would have been impossible with a narrower focus. In one case, they analyzed employee calibrations across multiple dimensions: “You have, like, around 8000 different dimensionality that you need to slice through to understand where the hotspots are. And now with ML, we are able to do that.”

Maintaining the Mission While Expanding Scope

The pivot didn’t mean abandoning their DEI roots. Instead, they found ways to embed DEI principles throughout their analytics platform. For instance, when examining employee calibrations, they expanded beyond simple gender analysis: “Prior to Included, they were only looking at one dimension, which is gender. And now we are able to look at like 300 different dimensions.”

The Results

The expansion has led to significant growth. “Since we crystallized on an MVP, we are seeing a 150% growth quarter over quarter,” Raghu shared. They’re now “on track to essentially close our first quarter million dollar deal.”

Lessons for Founders

Included AI’s pivot offers several key lessons for founders:

1. Listen when customers ask you to solve adjacent problems
2. Don’t assume category boundaries are fixed
3. Sometimes embedding your solution in a larger platform can increase impact
4. Market downturns can reveal unexpected opportunities

The Future Vision

The pivot has positioned them for an even bigger opportunity. As Raghu explains, “We will eventually transition into a people experience space… providing equitable experiences for every employee in an organization so that they can realize their full potential.”

For founders facing their own pivot decisions, Included AI’s journey demonstrates that sometimes the best path to achieving your mission isn’t the most direct one. By expanding their scope while maintaining their core focus on equity, they’ve created a platform with the potential for greater impact than their original vision.