Whatfix raises $125 Mn from Warburg Pincus and SoftBank

Digital adoption platform (DAPs) Whatfix has secured $125 million in a Series E funding round, led by Warburg Pincus with participation from existing investor SoftBank Vision Fund 2.

The investment will enable Whatfix to expand its category leadership and enhance its integrated product suite through organic growth and strategic acquisitions, the company said in a press release. It also aims to expand its market presence in the US, EMEA, and APAC regions.

With the new funding round, Whatfix has achieved a valuation of nearly $900 million. Last week, Entrackr exclusively reported about the deal with details including shareholding pattern and valuation.

A few early backers are expected to take partial exits after the Series E funding. However, Whatfix did not comment on it officially.

The Bengaluru-based firm has raised over $265 million to date from investors including Eight Roads Ventures, Peak XV, Dragoneer Investment Group, F-Prime Capital and Cisco Investments.

Founded by Khadim Batti and Vara Kumar, Whatfix provides in-app guidance and performance support for web applications and software products. Its tools are used by large companies to drive efficiency.

Since its funding round in June  2021, Whatfix claims to have achieved remarkable growth, solidifying its position as a leader in the newly established DAP category. The company serves global clientele, including Arrow Electronics, Schneider Electric, and Avnet, along with partners like Microsoft, Salesforce, Infosys, and Accenture.

According to the company, it registered a 4.5X increase in annual recurring revenue (ARR) since its last funding round, with new products contributing 15% of revenue. While the firm is yet to file its annual financial statements for FY24, it recorded a 65.7% growth in revenue from operations to Rs 285 crore in FY23. Its losses also went up 31.2% to Rs 328 crore in the same period (FY23).