Abstra Lands Accenture as Customer, Secures $2.3M Funding

Abstra Secures $2.3 Million Funding to Empower No-Code App Development

A funding round of $2.3 million has been completed by Abstra, a company specializing in a no-code platform designed for both designers and developers to construct professional applications. The investment was spearheaded by SoftBank Latin America Fund.

Company Origins and Founder's Background

Abstra was founded in March 2020 by Bruno Vieira Costa, based in Rio de Janeiro. Costa, a graduate from 2018, already possesses experience in successfully exiting a startup venture.

Prior to Abstra, the serial entrepreneur – who began programming at the age of seven – co-founded and served as CTO of PaperX, an edtech startup. This company was acquired by Descomplica, a larger, venture-backed edtech firm, when Costa was 23 years old.

Before pursuing higher education, he also played a key role in establishing a game studio named Sinextra, which reportedly secured significant clients within Brazil.

The Core Mission of Abstra

Abstra’s central objective is to facilitate app creation without the need for traditional coding. The platform is particularly advantageous for agencies seeking accelerated delivery times, or for non-technical departments requiring rapid iteration but reliant on centralized engineering resources, according to Costa.

Abstra enables designers and junior programmers to develop professional websites and applications at a pace exceeding that of senior developers in larger organizations, Costa stated.

“We provide easily accessible customization options, avoiding the typical UI constraints found in many no-code tools,” he explained.

Addressing Challenges in the No-Code Landscape

While the premise of no-code is simplicity, Costa contends that certain no-code tools present difficulties for designers due to the extensive fine-tuning required without coding expertise.

“Some solutions are overly technical, while others simply assemble pre-designed interfaces,” he said. “Our approach is designed to overcome both of these issues, offering both ease of use and flexibility.”

Target Market and Current Growth

Abstra is currently focused on serving late-/growth-stage technology companies and enterprise IT consulting firms. The startup is experiencing an average monthly recurring revenue (MRR) growth of 45% and has secured 11 customers to date, including Accenture, Stone, and Descomplica.

Prior to attracting investment from SoftBank, Abstra participated in the spring 2021 cohort of Y Combinator. Additional investors include Iporanga, Alexia Ventures, and several angel investors.

The Impact of Digital Transformation

The COVID-19 pandemic has accelerated the need for digital solutions across all industries.

“This has dramatically increased the demand for software development,” Costa explained to TechCrunch. “However, there is a significant shortage of available developers, making no-code solutions particularly valuable.”

Securing a Key Client: Accenture

An opportunity to present to Accenture, a consulting firm with over $50 billion in revenue in 2021, arose through a mutual connection.

“Following a product demonstration and presentation of previous client results, they decided to initiate a pilot program during the same meeting,” Costa shared with TechCrunch. “They have since become one of our most engaged users. For an enterprise consulting firm, utilizing tools like ours enhances their competitive edge.”

Investor Perspective

Patrick Arippol of Alexia Ventures conveyed to TechCrunch that his firm views the “no and low code opportunity” as being in its nascent stages.

“Abstra’s initial product demonstrated considerable promise and potential on a global scale, based on early customer feedback and the product’s fundamental architecture,” he stated via email.

Future Plans

The newly acquired capital will be primarily allocated to expanding Abstra’s current team of nine, with a focus on strengthening its engineering, marketing, sales, and operations departments.