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19 Nov 2024
Whatfix, a digital adoption platform serving businesses, is on track to achieve profitability in the next six months as it gears up for a potential IPO within two years, according to co-founder and CEO Khadim Batti. The company, which helps enterprises onboard and train employees through its software solutions, is targeting a $100 million revenue run rate in the next 12 months, Batti shared.
“We are focused on turning profitable within the next two quarters,” Batti said during an interview. The company raised $125 million in Series E funding, led by Warburg Pincus, bringing its valuation to $900 million. Existing investor SoftBank Vision Fund 2 also participated in the round.
Whatfix’s other backers include Dragoneer, Peak XV Partners, Eight Roads, and Cisco Investments. In 2021, SoftBank Vision Fund 2 led a $100 million round, valuing the company at around $600 million at the time. Of the $125 million raised, approximately $58 million came from a secondary sale, allowing early investors and angel investors to exit, while $67 million will be used to fund the company's expansion into Southeast Asia and West Asia. This expansion will complement its presence in key markets like the US and Europe, Batti said.
“The investment will allow us to expand our category and enhance our integrated product suite through organic growth and strategic acquisitions,” Batti added. The company expects 15-20% of its revenue to come from new markets such as Southeast Asia and the Middle East. For FY 2023, Whatfix reported ₹304 crore in revenue and a net loss of ₹328.3 crore. Batti mentioned that the company grew by approximately 45% in FY24, though official financials have not yet been filed.
Founded in 2014 by Batti and Vara Kumar, Whatfix provides in-app guidance and performance support for enterprises using web applications and software. It helps streamline employee onboarding, training, and support. Whatfix operates offices in the US, India, the UK, Germany, Singapore, and Australia, and serves over 700 enterprises, including more than 80 Fortune 500 companies such as Shell, Microsoft, Schneider Electric, UPS Supply Chain Solutions, and Genuine Parts Company.
“We’re targeting $100 million in revenue over the next year and expect to go public within the next 24-36 months,” Batti stated. “Whatfix’s unique digital adoption platform is transforming how organizations execute digital transformation initiatives, create great user experiences, and empower users to maximize software functionality and productivity,” said Narendra Ostawal, managing director and head of India private equity at Warburg Pincus. He highlighted Whatfix's strong potential in the fast-growing DAP (digital adoption platform) market. Warburg Pincus has been ramping up its investments in India, including a recent ₹3,000 crore deal to acquire a controlling stake in Ebco.
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