Whatfix, a leader in digital adoption solutions, has successfully raised $125 million in a Series E funding round led by Warburg Pincus. This significant investment aims to accelerate the company's growth and innovation in providing in-app user guides, catering to the increasing demand for digital transformation in businesses worldwide.
Key Takeaways
Funding Amount: Whatfix raised $125 million in Series E funding.
Valuation: The new funding round values the company at approximately $900 million.
User Base: Whatfix serves over 10 million users and 700 customers globally.
Market Growth: The digital adoption platform market is expected to grow significantly, with predictions that 70% of organizations will utilize such platforms by 2025.
Whatfix's Journey
Founded in 2013 by Khadim Batti and Vara Kumar, Whatfix began its journey with a different focus. Initially, the duo aimed to create a search engine optimization tool but faced challenges due to user confusion. This led them to pivot towards developing a platform that simplifies software usage through in-app guidance.
Whatfix now provides on-screen tutorials for around 750 applications, leveraging a vast database of documentation to assist users in navigating complex software environments. This approach has proven effective, as evidenced by the company's rapid growth and expanding customer base.
Funding Details
The recent funding round was led by Warburg Pincus, with participation from SoftBank’s Vision Fund 2. This investment marks a significant increase in Whatfix's valuation, which is now estimated to be 50% higher than its previous Series D round in 2021. The company has raised a total of $280 million to date, positioning it well for future growth.
Market Context
The digital transformation market has seen explosive growth, particularly during the COVID-19 pandemic, which accelerated the need for businesses to modernize their operations. According to Statista, global spending on digital transformation reached $1.85 trillion in 2022, reflecting a 16% increase from the previous year.
Whatfix operates within the digital adoption platform (DAP) segment, which is projected to grow significantly. Gartner forecasts that by 2025, 70% of organizations will implement a DAP, highlighting the increasing importance of user guidance in software applications.
Future Plans
With the new capital, Whatfix plans to expand its product offerings and enhance its market presence. The company has already introduced connectors for customer relationship management and enterprise resource planning software, which now contribute to 15% of its revenue. Additionally, Whatfix aims to explore strategic acquisitions and invest in product development, including advancements in generative AI to create automated agents for software applications.
Conclusion
Whatfix's recent funding round not only underscores the company's growth trajectory but also reflects the broader trend of digital transformation across industries. As businesses continue to seek efficient ways to onboard and support users in navigating complex software, Whatfix is well-positioned to lead the charge in the digital adoption space.
Sources
Whatfix raises a whopping $125M for its in-app user guides | TechCrunch, TechCrunch.
Whatfix Raises $125 Million Series E to Accelerate Expansion & Innovation of Digital Adoption Market | Taiwan News | Sep. 25, 2024 20:00, Taiwan News.