Whatfix Raises $90M to Enhance Digital Adoption

The Rise of Digital Adoption Platforms

Over the past year, “digital transformation” has been a central focus for many organizations. The shift to remote work, accelerated by the pandemic, has spurred investment in new applications, infrastructure, and work practices aimed at boosting productivity, irrespective of location.

Now, the focus is shifting towards successfully implementing and utilizing these new technologies. Startup Whatfix, which provides a platform for optimizing tech investments through chatbot-style guidance and AI-powered suggestions, has announced $90 million in funding to expand its platform and team.

Significant Growth and Valuation

Whatfix, co-headquartered in San Jose and Bangalore, has seen substantial growth. Sources indicate the Series D funding round values the company at approximately $600 million, a threefold increase from its Series C valuation last year.

This rapid rise is attributed to both market conditions and the company’s own expansion. Currently, Whatfix serves over 500 global customers, including The Netherlands Red Cross, Experian, and Cardinal Health Canada. Approximately 75% of its revenue originates from the U.S., with an additional 18% from Europe, and revenues are growing at a quarterly rate of 100%.

CEO Khadim Batti emphasized that the pandemic served as a catalyst for increased adoption of these types of solutions.

Investment Details and Market Landscape

The funding round was led by SoftBank’s Vision Fund 2, with participation from Eight Roads Ventures, Sequoia Capital India, Dragoneer Investment Group, F-Prime Capital, and Cisco Investments. Whatfix has now raised nearly $140 million in total.

Digital adoption solutions, like the one offered by Whatfix, are becoming increasingly popular as enterprises grapple with complex IT environments. Batti notes that over $500 billion has been spent on enterprise software, particularly SaaS, yet many employees fail to fully utilize these tools, leading to inefficiencies in digital transformation efforts.

These solutions take various forms, from embedded assistants within applications to separate platforms that integrate with existing software, providing data insights and usage recommendations. Competitors in this space include Pendo, Apty, Userlane, and Applearn, with WalkMe recently launching an IPO valued at $2.5 billion.

Market Potential and Whatfix’s Approach

The digital adoption and digital experience market is experiencing significant growth, projected to reach $15.8 billion by 2025, with an annual growth rate of nearly 11%.

Whatfix differentiates itself by functioning as an overlay on existing applications, supporting a wide range of modern software, even customized versions. The platform typically appears as a chatbot on the user’s screen, offering expandable details and information.

The company supports popular software packages like Salesforce, MS Dynamics, and Workday, and can be integrated via browser extension or IT department integration, extending support to web-based applications. Future development will focus on deeper integrations for mobile and local applications.

Beyond Training: Enhancing Productivity and Reducing Costs

While often used for software training, Whatfix also provides ongoing support, monitors user behavior to offer proactive suggestions, and can even populate fields in other applications. The platform offers features like usage guides, multilingual support, and user tracking, with low-code integration options.

Whatfix claims its assistants can boost employee productivity by 35%, reduce training costs by 60%, decrease support tickets by 50%, and improve data accuracy by 20%.

SoftBank Investment Advisers’ Managing Partner, Munish Varma, highlighted the increasing importance of SaaS products and the role of Whatfix in enhancing their usability and productivity. Sumer Juneja, Partner at SoftBank Investment Advisers, emphasized the need for quick adoption to maximize software investments.

Looking Ahead

The evolution of platforms like Whatfix will be crucial. Potential future applications include enhancing security by identifying and preventing users from clicking on malicious links. The continued prevalence of such tools suggests a sustained need for solutions that bridge the gap between software capabilities and user adoption.