Digital adoption platform Whatfix is targeting profitability within the next 7-8 quarters, according to co-founder Vara Kumar Namburu. The company, which recently secured $125 million in a Series E funding round led by Warburg Pincus and SoftBank Vision Fund 2, aims to balance its financial discipline with continued expansion. “We can be profitable very fast if we choose to, but we also want to grow quickly,” said Namburu, indicating that the focus remains on sustaining growth while working towards breaking even.
The company expects to maintain its growth rate during FY25. “The growth for next year will be, if not the same, more than this year. That’s what we are planning for,” Namburu said. The company, however, did not disclose its FY24 figures.
For FY23, Whatfix reported revenue of Rs 304 crore, up from Rs 192.9 crore the previous year. Despite a net loss of Rs 328.3 crore, this marked an improvement from the Rs 706.3 crore loss recorded in FY22. The company’s revenue has grown at a five-year compound annual growth rate (CAGR) of 99%, while the net loss CAGR stands at 114%.
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Annual recurring revenue (ARR) saw a 45% year-on-year increase, during FY23, driven primarily by growth from existing customers. “Almost 45% of our customers are expanding every year, not just renewing but using more applications and more products,” Namburu noted. This expansion has been a key factor in the company’s growth, with multi-year contracts becoming increasingly common among its roughly 700 clients, including over 80 Fortune 500 companies, Namburu added. The firm recently secured six deals exceeding $1 million from large enterprises.
Whatfix’s revenue is driven by three primary product lines: its core digital adoption platform (DAP), which provides in-app guidance and training to enhance user adoption of enterprise software; product analytics, which helps product managers and developers understand user behaviour and optimise features; and Mirror, a newer tool that simulates real-world applications for training in a controlled environment. While the DAP continues to be the flagship offering, Namburu projected that the recently launched Mirror product will significantly contribute to future growth, especially in sectors requiring complex training and simulations. “We are also working on AI-based ‘agents’ that can perform actions autonomously within certain applications,” Namburu added.
Namburu stated that while North America and India continue to make up about 65% and 25% of revenue, respectively, “We don’t expect meaningful changes in the revenue mix, but we expect growth to happen across all regions,” he added.
The $125 million Series E round valued Whatfix at approximately $900 million post-money, representing a 50% increase from its Series D valuation in 2021. The company plans to use the funds to support product development—particularly in generative AI—geographic expansion, and acquisitions. The firm has previously acquired companies like Airim, Nittio Learn, and Leap.is.
The company currently employs around 960 people and expects to grow to between 950-1,000 by the end of FY25. Post-Series E, Warburg Pincus holds a 4% stake, while SoftBank Vision Fund 2 holds 12.9%. The founders hold 15.1%, with Helion Venture Partners and Sequoia Capital owning 12.8% and 12.7%, respectively. The ESOP pool accounts for 7.2%.
From: financialexpress
Financial News
