Zapier Acquires Makerpad: First Acquisition for Automation Leader

Zapier Acquires Makerpad: Expanding the No-Code Ecosystem

Zapier, a leading no-code automation platform, has completed the acquisition of Makerpad, a company focused on no-code education and community building. The financial details of this transaction have not been publicly revealed.

Zapier's Growth and First Acquisition

TechCrunch has consistently reported on Zapier’s progress, including its initial fundraising round of $1.2 million in 2012, which included investments from Bessemer, DFJ, and other firms.

Since securing that initial funding, Zapier has expanded its service offerings with more premium plans. They’ve also developed features specifically designed for team collaboration. Recently, the company discussed its successful scaling of a fully remote workforce with Extra Crunch.

During a recent interview, Zapier CEO Wade Foster shared that the company currently employs 400 individuals. He also confirmed that Zapier surpassed $100 million in Annual Recurring Revenue (ARR) last summer.

Makerpad to Operate Independently

This acquisition marks Zapier’s first venture into acquiring other companies. When questioned about the deal’s structure, Makerpad founder Ben Tossell explained via email that his company will continue to function as a separate entity under its new ownership.

The acquisition isn’t expected to significantly alter Makerpad’s existing trajectory. Tossell stated that Makerpad’s core mission remains to empower individuals through education on the possibilities of building applications without traditional coding.

Strategic Alignment and Future Vision

Foster expressed his support for this continued focus, indicating that Makerpad will largely maintain its operational independence, guided by a set of editorial principles.

Tossell explained that the timing was right to sell the business because the partnership with Zapier would enable his team to advance the no-code movement further than they could independently. He also noted that the deal was a more attractive option than pursuing venture capital funding.

The Role of a Single Tweet

Interestingly, the acquisition was initiated by a single tweet. According to Tossell, the CEO of Zapier contacted him after seeing this tweet, sparking initial conversations that ultimately led to the agreement.

Foster elaborated on this story, revealing that he had been following Tossell’s work for some time and that they had previously connected at industry events. The tweet appeared in his Slack channel, prompting him to reach out, and the deal progressed rapidly from there.

Rapid Growth in Both Companies

Both Zapier and Makerpad have experienced substantial growth in recent periods. Foster highlighted that small businesses have become increasingly reliant on Zapier’s services in the wake of the COVID-19 pandemic, resulting in significant adoption among SMBs.

This trend is likely to continue given the accelerated pace of digital transformation. Tossell also noted that the no-code landscape has expanded beyond his initial expectations, with Makerpad’s user base growing fourfold in less than a year.

Synergies and Community Building

With this acquisition, Zapier, a prominent success story in the no-code technology sector, gains access to a dedicated community. This community could potentially drive direct user acquisition and expand the overall pool of no-code developers.

The Expanding No-Code and Low-Code Markets

The no-code and low-code spaces have seen considerable activity recently. The low-code market has attracted significant investment, with some companies raising nine-figure funding rounds as corporations seek faster ways to develop internal software. The no-code world, exemplified by Zapier, is also demonstrating substantial revenue generation.

Future Outlook for Zapier

Foster remained noncommittal regarding further acquisitions, neither ruling them out nor actively pursuing them. However, he was definitive in stating that an initial public offering (SPAC) is not under consideration.

Conversations with numerous founders and investors in the no-code and low-code sectors suggest a growing acceptance of these services within the broader business market. Smaller companies have been particularly quick to adopt no-code tools. As low-code tools become more accessible and no-code tools gain functionality, a potential convergence of these two categories may occur.