SaaS leader Whatfix has successfully raised $125 million in its Series E funding round, led by private equity giant Warburg Pincus, with participation from SoftBank Vision Fund 2. This round, comprising a mix of primary and secondary shares, values Whatfix at $840 million, representing a 50% growth from its previous valuation of $568 million in June 2021. The funds will drive the company’s global expansion and product innovation.
Warburg Pincus, which has invested $9 billion across nearly 80 Indian companies, expressed confidence in Whatfix’s proven track record, particularly its work with over 80 Fortune 500 companies. SoftBank Vision Fund 2, an existing backer with a 13.3% stake before this round, continues to support Whatfix’s growth trajectory.
Whatfix has witnessed tremendous expansion, reporting an annual recurring revenue (ARR) of $75 million as of September 2024—a 4.5x increase since its last funding round. The firm is now targeting $100 million in ARR by mid-2025. It currently serves 700 clients globally, up from 382 in December 2020. Moreover, more than 40% of its 960 employees will benefit from an ESOP buyback.
Founded in 2013 by Khadim Batti and Vara Kumar Namburu, Whatfix’s core product is its Digital Adoption Platform (DAP), which simplifies and optimizes user experiences on enterprise applications. Its clientele includes notable companies such as Microsoft, Shell, and Schneider Electric. While the U.S. contributes 68% of its revenue, Whatfix has diversified into regions like Europe, the Middle East, Africa, and Asia-Pacific, which now account for 27% of its revenue, up from 20% three years ago.
In addition to its DAP, Whatfix has expanded its portfolio with offerings like Product Analytics and Enterprise Insights, which were launched in 2023 and are fueling further growth. The company is set to unveil a new product, Mirror, in October, allowing hyper-realistic replicas of web applications for training purposes.
Whatfix faces competition from WalkMe, an Israeli company that was acquired by SAP for $1.5 billion earlier this year. The two firms are currently involved in a legal dispute in the U.S., with WalkMe accusing Whatfix of misappropriation of trade secrets and breach of contract. Whatfix has sought dismissal of these claims, and a hearing is ongoing.
Looking ahead, Whatfix is focused on expanding its enterprise customer base, leveraging AI capabilities, and exploring acquisition opportunities to strengthen its offerings. To date, the company has completed four acquisitions and remains open to more as it continues its growth journey.
Key Highlights:
- Whatfix raised $125M in Series E, boosting its valuation to $840M and driving global expansion and product innovation.
- Whatfix achieved $75M in ARR as of September 2024 and aims for $100M by mid-2025, serving over 700 clients, including Fortune 500 firms.
- The company is expanding its portfolio, with new product launches and AI capabilities while navigating a legal dispute with competitor WalkMe.