B2B SaaS startup Whatfix has raised $125 Mn (around INR 1,045 Cr) in a Series E funding round led by Warburg Pincus, with participation from existing backer SoftBank Vision Fund 2. This round, comprising both primary and secondary investments, pushes the startup’s valuation to approximately $900 Mn (INR 7,524.4 Cr), a 50% increase from its previous $600 Mn valuation.
Warburg Pincus led the round with a $100 Mn infusion, while SoftBank contributed $25 Mn through its Vision Fund 2. The breakdown reveals $67 Mn as primary investment and $58 Mn as secondary investment.
Whatfix, co-founded by Khadim Batti and Vara Kumar in 2013, plans to leverage the fresh capital to expand its footprint in new geographies such as Southeast Asia and the Middle East. Additionally, the funds will be used to bolster its product suite, both through organic growth and strategic acquisitions.
Khadim Batti, co-founder of Whatfix, said, “In the past 3 years, we have grown from a single product offering to a multi-product suite. From becoming a full stack adoption solution in the mobile, desktop, and web, we added a data product line like product analytics and product insights while also adding a simulation product called Mirror.”
The company’s flagship digital adoption platform helps businesses with onboarding, user training, and support by displaying contextual content when needed. Whatfix generates revenue by selling subscriptions and professional services to enterprises, including Fortune 500 companies.
Batti mentioned that 50% of Whatfix’s revenue now comes from products launched over the last three years, such as mobile adoption, simulation, and data analytics. This diversification of offerings, including the addition of mobile adoption through the acquisition of Leap, a mobile-first onboarding platform in 2022, has significantly boosted the company’s ARR (Annual Recurring Revenue) to around $75 Mn.
The startup’s geographic revenue split is led by the US, which contributes 67%, followed by Europe at 27-28%. Batti also highlighted the company’s Net Revenue Retention (NRR) rate of 115% over the past three years and an Average Revenue Per Account (ARPA) of 135% for the same period.
In terms of financial performance, Whatfix reduced its net loss by 53% in FY23, bringing it down to INR 328.33 Cr due to decreased finance costs. The startup also reported a 45% growth in revenue to INR 284.74 Cr in FY24, compared to the previous fiscal year.
Batti expressed confidence in the company’s ability to reach break-even in the next eight quarters, stating, “We aim to break even in the next eight quarters without compromising on growth.”
This latest funding round follows Whatfix’s $90 Mn Series D round in 2021, led by SoftBank Vision Fund 2, and a $32 Mn Series C round led by Sequoia Capital India and others in 2020. To date, Whatfix has raised over $265 Mn in total funding.
The capital raise comes amid a surge in digital adoption in India, driven by widespread smartphone penetration and affordable internet. As enterprises strive to optimize their productivity through digital adoption, Whatfix continues to contribute to the industry by developing over 4,100 DAP experts since 2021.
According to Fortune Business Insight, the global digital adoption platform market was valued at $702.0 Mn in 2023 and is projected to reach $943.6 Mn in 2024, growing at a CAGR of 18.5% through 2032, reaching $3,660.4 Mn.
