Whatfix in talks to raise $100M from SoftBank Vision Fund
SoftBank Vision Fund is said to be in talks to lead a $100-million financing round in Whatfix, which is a software-as-a-service (SaaS)-based digital adoption startup and has offices in San Jose and Bengaluru.
Sources indicated that the recent funding values the company around $500 million, up from $150 million when it raised funds a year ago. “SoftBank has put in a term sheet and is likely to close the transaction soon. It’s a highly competitive round with other investors also having shown interest,” said another person aware of the matter.
Post investing in Mindtickle, a cross-border sales enablement platform, SoftBank has been actively looking for SaaS deals, especially companies with annual recurring revenue (ARR) of $10-15 million, which shows that their products have been approved by their clients.
Established by Vara Kumar and Khadim Batti, Whatfix offers in-app guidance and performance support for web applications and software products to businesses. It aids companies to deliver easy onboarding, training, and self-service support. The company said last year its products have helped increase employee productivity by 35%, decreased training time and costs by 60%, and increased application data accuracy by 20%.
Last year in February, the company had raised $32 million in a Series C funding round led by Sequoia Capital India. Its other investors include Cisco Investments, Eight Roads Ventures, and F-Prime Capital, which had also participated in the round. “The existing investors too will participate in the round,” said another person familiar with the company’s plans. In an announcement last year, the company stated it would utilize the money for product development and to expand to places such as Europe and Australia.
India’s SaaS unicorn club includes Druva, Freshworks, Zenoti, Innovaccer, Icertis, and Postman.
According to a December 2020 report by global consulting company Bain & Co., Indian SaaS companies are positioned to reach $18 billion to $20 billion in revenue and seize a 7% to 9% share of the global SaaS market by 2022. “SaaS firms such as Zoho, Freshworks, Druva, and Icertis have already broken through the $100-million annual recurring revenue (ARR) mark, with a healthy pipeline of companies well-placed to follow over the next 12 to 18 months,” the report stated.
The pandemic-induced push for digital adoption has boosted Whatfix’s revenue and the latest funding would help the company to grow further.Shishir Gupta, Founder and CEO, StartupLanes
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