B2B SaaS startup Whatfix has successfully secured $125 million (approximately INR 1,045 crore) in a Series E funding round led by Warburg Pincus, with significant participation from existing investor SoftBank Vision Fund 2. This funding boost elevates Whatfix’s valuation to around $900 million (INR 7,524.4 crore), marking a 50% increase from its previous valuation of $600 million.
Warburg Pincus contributed $100 million to the round, while SoftBank added $25 million. The investment comprised $67 million in primary funding and $58 million in secondary investments.
Co-founded in 2013 by Khadim Batti and Vara Kumar, Whatfix plans to use the new capital to expand its presence in regions such as Southeast Asia and the Middle East. Additionally, the funds will enhance its product offerings through both organic growth and strategic acquisitions.
Khadim Batti, co-founder of Whatfix, stated, “In the past three years, we have evolved from a single product offering to a comprehensive multi-product suite. We’ve transitioned into a full-stack adoption solution for mobile, desktop, and web, adding data products like analytics and insights, along with a simulation tool called Mirror.”
Whatfix’s flagship digital adoption platform assists businesses in onboarding, user training, and support by delivering contextual content as needed. The company generates revenue primarily through subscription sales and professional services to a range of clients, including Fortune 500 companies.
Notably, 50% of Whatfix’s revenue now stems from products introduced in the last three years, including mobile adoption and data analytics. The diversification of offerings, particularly after acquiring Leap, a mobile-first onboarding platform in 2022, has significantly boosted the company’s Annual Recurring Revenue (ARR) to around $75 million.
In terms of geographic revenue distribution, the U.S. accounts for 67% of sales, followed by Europe at approximately 27-28%. Batti highlighted the company’s impressive Net Revenue Retention (NRR) rate of 115% over the past three years, along with an Average Revenue Per Account (ARPA) of 135%.
Financially, Whatfix reduced its net loss by 53% in FY23, bringing it down to INR 328.33 crore due to lower finance costs. The company reported a 45% revenue growth to INR 284.74 crore in FY24 compared to the previous year.
Batti expressed optimism about reaching break-even within the next eight quarters, emphasizing, “We aim to achieve this milestone without compromising our growth trajectory.”
This funding round follows Whatfix’s previous $90 million Series D round in 2021, led by SoftBank Vision Fund 2, and a $32 million Series C round led by Sequoia Capital India in 2020. To date, Whatfix has raised over $265 million in total funding.
The capital raise coincides with a surge in digital adoption in India, fueled by increased smartphone penetration and affordable internet access. As companies seek to enhance productivity through digital solutions, Whatfix continues to play a vital role in the industry, having developed over 4,100 Digital Adoption Platform experts since 2021.
According to Fortune Business Insights, the global digital adoption platform market was valued at $702 million in 2023 and is projected to grow to $943.6 million in 2024, with a compound annual growth rate (CAGR) of 18.5% expected through 2032, potentially reaching $3.66 billion.
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