Whatfix raises $125 million in Series E from Warburg Pincus, SoftBank

B2B digital adoption platform (DAP) Whatfix has raised $125 million in a series E funding round led by Warburg Pincus with existing investor SoftBank Vision Fund 2. The SaaS company says the investment will allow it to expand the DAP platform, where it claims “leadership” and enhance its integrated product suite. The SaaS startup claims to have raised funds at a 50% premium. It has plans to expand its market presence in the U.S., EMEA, and APAC regions.

Whatfix, which operates largely from San Jose, California and Bengaluru, India, claims to have registered a 4.5X increase in annual recurring revenue (ARR) since its 2021 round, with new products contributing 15% of it. Whatfix says it launched four new products since 2021, secured five US patents and claims 18 more are in the pipeline. “Enterprises are grappling with the complexities of digital transformation and the ever-increasing pressure to deliver exceptional user experiences. The investment will accelerate innovation, and bolster value to our customers,” says Khadim Batti, CEO and co-founder of Whatfix.

Whatfix’s GenAI-powered product suite includes a digital adoption platform, simulated application environments for hands-on training, and no-code application analytics. Narendra Ostawal, head of India private equity, Warburg Pincus says Whatfix has immense potential to capitalise on the tailwinds and solidify its position in the high-growth DAP market.

Launched in 2013, Whatfix has seven offices across the US, India, UK, Germany, Singapore, and Australia, and claims to support 700+ enterprises, including over 80 Fortune 500 companies like Shell, Microsoft, Schneider Electric, UPS Supply Chain Solutions, and Genuine Parts Company. Its investors include leading players like Warburg Pincus, Softbank Vision Fund 2, Dragoneer, Peak XV Partners, Eight Roads, and Cisco Investments. The company says around 96% of its revenue is generated internationally.

What are DAPs

DAPs provide insights, make users agile, and drive business outcomes by accelerating application adoption and optimising workflows. By 2027, market intelligence firm IDC predicts that 80% of G1000 organisations will rely on DAPs to mitigate technical skills shortages.

As per Gartner's 2023 Market Guide, 70% of organisations are projected to use DAPs by 2025, which makes them critical for enterprise success. "As organisations adopt an evolving array of AI-enabled technologies, DAPs have become essential for digital transformation," says Amy Loomis, Research Vice President, Future of Work at IDC.

Startup Funding in FY24 so far

After a positive momentum for the first six months of the calendar year, funding secured by Indian startups has seen a 7% drop year-on-year in nine months till September 2024. With 1,36,000 startups and 99 unicorns, India ranks 4th globally in funding, behind the U.S., UK and China. In 2024 year-to-date, tech startups secured $7.6 billion in funding, marking a 7% drop from $8.2 billion in 2023 and a 66% decline from $22.4 billion in 2022, according to the latest data shared by data intelligence platform Tracxn.

During the past nine months, the tech ecosystem saw 12 funding rounds exceeding $100 million, with Zepto raising $1 billion across two rounds. Other notable fundraisings were by Flipkart, DMI Finance, Apollo 24|7, Meesho, API Holdings, and Rapido. They raised over $200 million each.