Whatfix, a software-as-a-service (SaaS) company, recently secured $125 million in a Series E funding round, led by private equity firm Warburg Pincus. Warburg Pincus invested $100 million, while SoftBank, an existing investor, contributed an additional $25 million. With this new funding round, Whatfix’s valuation has jumped to around $900 million, up from $568 million in 2021 after a $90 million round led by SoftBank.
Warburg led the new funding round, contributing $70 million in primary fundraising while existing investors covered the rest through secondary deals. Early investors Helion Venture Partners and Eight Roads Ventures partially sold their stakes in this round.
Khadim Batti, founder and CEO of Whatfix, stated that the company plans to use the primary funds for acquisitions and to strengthen its current products. They also aim to focus on GenAI use cases and expand their presence in the US, EMEA, and APAC regions.
Currently, 66% of Whatfix’s revenue comes from the US market, 27% from Western Europe, and the rest from other regions.
Founded in 2014, Whatfix provides a digital adoption platform, simulated application environments for hands-on training, and no-code application analytics. These services help organizations boost user productivity, maintain process compliance, and enhance the user experience for internal and customer-facing applications.
“As a company, we evolved from an adoption-only problem statement to helping enterprises visualize and realize the return on investment (ROI) on their digital transformation, on their software stack, and giving them tools to continuously improve productivity through adoption. Later on, we added simulation,” Batti said.
The company reported over 45% growth in FY24 but did not reveal exact figures. In FY23, it recorded revenue of Rs 304 crore and a net loss of Rs 328.3 crore. A 45% growth would bring its FY24 revenue to approximately Rs 441 crore.
Whatfix is said to have an annual recurring revenue of $75 million. “In a couple of quarters, we will cross $100 million ARR,” Batti said.
Batti said that the company aims to continue growing by around 40% over the next two years while also enhancing its operational efficiency. “Over the next two years, we are looking to break even in terms of earnings before interest, taxes, depreciation, and amortization and then actually go for an initial public offering,” he said.
For an acquisition, he said: “We will look for a company that has achieved strong product-market fit with a substantial or decent revenue…which can help us scale in the digital adoption platform (DAP) category, accelerate our progress in gen ai and can improve our analytics.”
Although Whatfix operates globally, its holding company is based in India. Most SaaS companies, however, typically run their operations from the US.
