September 25, 2024: Whatfix, a leading player in the Digital Adoption Platforms (DAP) space, has successfully raised $125 million in its Series E funding round, propelling the company towards its next phase of growth and strengthening its foothold in the DAP space.
Unlike previous funding rounds, Whatfix is focusing on more than just product enhancement. The Bengaluru-based company is aiming to bolster its global presence, especially in the US, Europe, the Middle East, and Southeast Asia, where demand for digital adoption solutions is on the rise. CEO and Co-founder Khadim Batti highlighted that the new funds will be used for both organic growth and strategic acquisitions.
“We are seeing significant traction in key regions, but our goal is to solidify our presence in newer geographies while expanding the DAP category itself. This funding allows us to double down on our initiatives and capture a larger share of the market,” Batti remarked.
With a 4.5X surge in annual recurring revenue (ARR) since its previous funding, Whatfix has seen a significant contribution from new product launches, including its latest innovation, Enterprise Insights. This tool provides enterprises with valuable analytics for better decision-making, further strengthening Whatfix’s foothold in the DAP space. The company also unveiled Mirror, a simulation tool in its beta phase, along with several advancements in generative AI across its product line.
Whatfix well poised to leverage DAP market
According to industry research by Gartner, 70% of organizations are expected to adopt DAPs by 2025, placing Whatfix in a prime position to benefit from this growing trend. Narendra Ostawal, Head of India Private Equity at Warburg Pincus, underscored the company’s potential: “Whatfix is well-positioned to capture market tailwinds and solidify its leadership in the high-growth DAP market.”
The company has been aggressively reinvesting in its future, with 25-30% of its earnings funneled into sales, marketing, and research & development. Another 10-15% is allocated to balance profit and loss (P&L) to improve EBITDA and reduce cash burn. Batti remains confident that Whatfix can achieve EBITDA breakeven within the next six quarters without sacrificing growth, setting the stage for a potential IPO.
Whatfix’s growth strategy has already paid off with 95-96% of its revenue coming from international markets, showcasing its strong global footprint. Batti emphasized that the company’s expansion will continue to focus on new regions while increasing its leadership in the DAP category.
The round was led by private equity firm Warburg Pincus, with contributions from existing investor SoftBank Vision Fund 2, signaling strong confidence in the company’s future.
