SaaS firm Whatfix raises $50 million ARR, eyes new funding round
Whatfix, which is sponsored by SoftBank and Sequoia Capital, is experiencing strong revenue growth at a time when subscription software businesses are struggling with sluggish sales cycles. According to two persons acquainted with the company's operations, the Bengaluru-based company increased its annual recurring revenue (ARR), a crucial indicator for software-as-a-service (SaaS) enterprises, from $20 million in 2021 to $50 million in 2018.
The SaaS-based platform's revenue growth was attributed to increased demand from enterprise customers to increase staff productivity and cut back on training expenses and time, according to the sources. The platform offers in-app assistance and performance support for online apps and software products. Whatfix's spokesperson cited confidentiality when she declined to comment on the company's ARR figures.
One of the sources previously mentioned stated that the startup is also in discussions to seek money. Whatfix seeks money at a time when SaaS funding has significantly decreased. Whatfix has also been creating new, expansive language models and linking them to integrations with artificial intelligence for its offering.
Whatfix co-founder and CTO Varak Kumar stated in a blogpost earlier this month that the auto-complete and image-recognition technologies make it simpler for enterprises to train their workforces on new applications without any engineering effort. The integrations take place at a time when late- and growth-stage entrepreneurs are prioritising their existing businesses over new ones because funding is becoming more scarce.
SaaS businesses have been offering clients a 40–50% discount on significant purchases. Despite having a price advantage over their US competitors, Indian SaaS companies nevertheless face competition. Typically, the sector's SaaS margins range from 60 to 70%. Whatfix would join the select few businesses that are still able to draw investors with a new investment round, the specifics of which are unknown since these discussions are still in the exploratory stage.
According to data from Venture Intelligence, a transactions database company, funding in the business software sector, which includes SaaS platforms and all other software products offered to companies, decreased to $366 million in the quarter ended March 2023 from $2.55 billion in the year-ago quarter.
The SaaS-based platform's revenue growth was attributed to increased demand from enterprise customers to increase staff productivity and cut back on training expenses and time, according to the sources. The platform offers in-app assistance and performance support for online apps and software products. Whatfix's spokesperson cited confidentiality when she declined to comment on the company's ARR figures.
One of the sources previously mentioned stated that the startup is also in discussions to seek money. Whatfix seeks money at a time when SaaS funding has significantly decreased. Whatfix has also been creating new, expansive language models and linking them to integrations with artificial intelligence for its offering.
Whatfix co-founder and CTO Varak Kumar stated in a blogpost earlier this month that the auto-complete and image-recognition technologies make it simpler for enterprises to train their workforces on new applications without any engineering effort. The integrations take place at a time when late- and growth-stage entrepreneurs are prioritising their existing businesses over new ones because funding is becoming more scarce.
SaaS businesses have been offering clients a 40–50% discount on significant purchases. Despite having a price advantage over their US competitors, Indian SaaS companies nevertheless face competition. Typically, the sector's SaaS margins range from 60 to 70%. Whatfix would join the select few businesses that are still able to draw investors with a new investment round, the specifics of which are unknown since these discussions are still in the exploratory stage.
According to data from Venture Intelligence, a transactions database company, funding in the business software sector, which includes SaaS platforms and all other software products offered to companies, decreased to $366 million in the quarter ended March 2023 from $2.55 billion in the year-ago quarter.
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