SoftBank fund leads $90 mn Series-D round in SaaS startup Whatfix

Valuation of Bengaluru-based startup triples to touch $600 mn

SaaS startup Whatfix, which helps enterprises accelerate the adoption of software applications, has raised $90 million in a Series D funding led by SoftBank Vision Fund 2. Eight Roads Ventures, Sequoia Capital India, Dragoneer Investment Group, F-Prime Capital and Cisco Investments also participated in the round.

The Bengaluru-based startup has raised $139.8 million so far and the company’s valuation has increased three times with the latest fundraise, touching $600 million.

The company will be investing the funds to continue growing its stronghold in the US market, while accelerating global expansion into new markets such as Asia Pacific and Europe. Currently about 75 per cent of the company’s revenue is generated from the US market. Whatfix will also be using the funds in product innovation focusing on artificial intelligence (AI), enterprise solutions, and providing personalised experiences.

“When you're driving, GPS helps you to navigate in real time by giving you directions to reach the destination. Whatfix is like a  GPS on top of a software application which gives them knowledge to complete a particular task,” said Khadim Batti, CEO and co-founder, Whatfix, who cofounded the startup with Vara Kumar in 2014, both former Huawei executives.

“This latest round of funding strengthens our position as market leaders as we plan to expand our offerings globally and continue to provide excellent customer service to businesses who look to us to guide them through their digital transformation initiatives,” he added.

The startup already has a desktop and mobile solution and will be investing heavily in these to cover all possible software applications in an organisation. Apart from user guidance, the startup is investing in AI to understand user behaviour, and help them proactively, Khadim told Business Standard. The company has around 500 global customers comprising more than 100 Fortune 1000 brands.

In the past two years, Whatfix has seen a 150 per cent growth as remote working meant higher adoption and utilisation of software applications. It has opened three new offices in the United Kingdom, Germany and Australia. Whatfix currently has 500 employees across six global offices and is playing in a $20 billion market.

Enterprises spend billions of dollars on applications across multiple functions every year and yet employee adoption is low. Quick adoption ensures payback on software investments. “Whatfix’s solutions will be a key driver for enterprises to achieve this goal, which is reflected in their growth,” said Sumer Juneja, Partner, SoftBank Investment Advisers.

The startup makes it easier for companies to use SaaS products, which increases productivity. It claims to increase employee productivity by 35 per cent, reducing training time and costs by 60 per cent, reducing employee case tickets by 50 per cent and increasing application data accuracy by 20 per cent. “Whatfix, with its roster of global clients, is well placed to become a DAS leader, and we are excited to be part of their journey,” said Munish Varma, Managing Partner, SoftBank Investment Advisers. Apart from Whatfix, SoftBank Vision Fund 2 has so far invested in two more startups in India this year, Meesho and Zeta, both of whom have become unicorns.