Mixpanel Raises $200M Series C Funding - 7 Years After Last Round

Mixpanel Secures $200 Million in Series C Funding

In 2014, Mixpanel garnered significant attention with a $65 million Series B funding round, resulting in an $865 million valuation. Seven years later, the company has announced a $200 million Series C investment led by Bain Capital Tech Opportunities, establishing a valuation of $1.05 billion.

Addressing Past Challenges

Mixpanel has acknowledged to TechCrunch that several factors contributed to the delay in securing further funding. A pivotal moment occurred in 2018 with the promotion of COO Amir Movafaghi to CEO, initiating a series of strategic adjustments aimed at revitalizing the company.

Subsequently, the company made the decision to discontinue its messaging and A/B testing products. This allowed for a concentrated focus on the product analytics market. Simultaneously, efforts were undertaken to enhance key customer satisfaction indicators, such as the Net Promoter Score (NPS).

Improved Metrics Drive Growth

When Movafaghi assumed the role of CEO, the NPS stood at 15. A renewed emphasis on the core product led to substantial improvements in customer retention, NPS, and overall business performance. This year, the NPS has risen to 85.

Movafaghi stated that the positive business trajectory has continued, with improvements in monetization and other key metrics. These advancements have been consistently observed since previous discussions regarding company performance.

From Potential to Unicorn Status

Upon taking leadership in 2018, Movafaghi inherited a company with $100 million in revenue and a valuation nearing $1 billion. He openly acknowledges the challenges and fluctuations experienced throughout the company’s 12-year history.

“Our journey wasn’t linear,” he explained. “There were times when we needed to reassess and redirect the company’s course.” He suggests that the company may have initially entered the market prematurely, but the accelerated digital transformation spurred by the pandemic created a greater need for the product data analytics offered by Mixpanel.

Bain Capital's Perspective

Dewey Awad, managing director at Bain Capital Tech Opportunities, expressed his admiration for Movafaghi’s handling of the company’s transition.

“Amir dedicated considerable time to understanding the market landscape, the product’s positioning, and the specific segment where the company excelled,” Awad noted. “He then strategically focused on the core product and a product-led sales approach, which demanded significant time, complexity, and recruitment efforts.”

A Focused Strategy for the Future

Awad emphasized his confidence in the company’s focus and the substantial growth potential within the product analytics market. Bain Capital fully supported the decision to prioritize the core product and discontinue messaging and A/B testing functionalities.

With this new capital, Mixpanel intends to expand its market share through strategic partnerships and continued investment in its core product, catering to its enterprise-level clientele.

Company History and Funding

Founded in 2009 by Suhail Doshi and Tim Trefren, Mixpanel has now raised a total of $277 million, including the current round, as reported by Crunchbase data. Doshi served as CEO from the company’s inception until 2018, when he transitioned to the role of chairman of the board.