SUMMARY
- Whatfix raised $125 million in a Series E round led by Warburg Pincus, bringing its valuation to $840 million.
- The SaaS firm has seen rapid growth, reporting $75 million in annual recurring revenue and targeting $100 million by mid-2025.
- Whatfix is expanding its global footprint and diversifying its product offerings, with new AI-driven features and acquisitions on the horizon.
SaaS firm Whatfix has secured $125 million in a Series E funding round led by private equity giant Warburg Pincus, with participation from existing backer SoftBank Vision Fund 2. The round, a mix of primary and secondary shares, values Whatfix at $840 million—marking a 50% increase from its previous valuation of $568 million in June 2021. This capital will fuel the company’s global expansion and product innovation.
Warburg Pincus, a seasoned investor with $9 billion deployed across nearly 80 Indian companies, highlighted Whatfix’s track record of serving large enterprises, including over 80 Fortune 500 companies, as a key reason for its backing. SoftBank Vision Fund 2, which held a 13.3% stake before this round, also contributed to the funding.
Whatfix has experienced rapid growth, reporting $75 million in annual recurring revenue (ARR) as of September 2024, a 4.5x increase since its last funding round in 2021. The company aims to reach $100 million in ARR by mid-2025. Currently, Whatfix serves 700 clients, up from 382 in December 2020, and 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 flagship Digital Adoption Platform helps enterprises streamline the user experience across internal and customer-facing applications. The firm’s growing portfolio includes Fortune 500 clients such as Microsoft, Shell, and Schneider Electric. While the U.S. remains its largest market, contributing 68% of revenue, the company has diversified into Europe, the Middle East, Africa, and Asia-Pacific, with these regions now accounting for 27% of revenue, up from 20% three years ago.
Whatfix’s product portfolio has expanded in recent years, with 85% of revenue coming from its Digital Adoption Platform. Newer offerings like Product Analytics and Enterprise Insights, launched in 2023, are driving additional growth. A new product, Mirror, set to launch in October, will enable hyper-realistic replicas of web applications for training and demos.
The company’s biggest competitor, Israeli firm WalkMe, was acquired by SAP for $1.5 billion earlier this year. However, the two firms are currently embroiled in a lawsuit in the U.S., with WalkMe accusing Whatfix of trade secret misappropriation and contract breach. Whatfix has sought the dismissal of these claims, and a hearing is ongoing in the U.S. District Court for the Northern District of California.
As Whatfix looks to the future, its focus remains on expanding its enterprise customer base, leveraging artificial intelligence (AI) capabilities, and exploring potential acquisitions to accelerate its product roadmap. The company has already made four acquisitions and remains open to more to strengthen its offerings.
