Whatfix, a business-to-business digital adoption platform, is on track to achieve profitability within the next six months as it prepares for a possible public listing in two years, its co-founder and chief executive Khadim Batti said on Wednesday. The company, which helps enterprises onboard and train employees through software solutions, aims to hit a $100 million revenue run rate over the next 12 months, Batti said.
“We are working towards turning profitable over the next two quarters,” Batti said in an interview with Mint.
Whatfix has secured $125 million in Series E funding, led by Warburg Pincus, which values the company at $900 million. Existing backer SoftBank Vision Fund 2 also participated in the round.
The company’s roster of backers includes Dragoneer, Peak XV Partners, Eight Roads, and Cisco Investments. In 2021, SoftBank Vision Fund 2 led a $100 million financing round, which at the time valued the company at approximately $600 million.
According to Batti, around $58 million of the recent funding was a secondary sale, allowing early investors and angel backers to sell their stakes, while the remaining $67 million will be used to fuel the company’s expansion into Southeast Asia and the West Asia. This will be in addition to the company’s growing presence in its existing markets such as the US and Europe, he added.
“The investment will enable us to expand out category and enhance our integrated product suite through organic growth and strategic acquisitions,” he said. “Going forward, we expect around 15-20% of our revenues to come from newer markets such as Southeast Asia and Middle East (West Asia).”
For the financial year ended March 2023, Whatfix reported a revenue of ₹304 crore and a net loss of ₹328.3 crore. According to Batti, the company grew approximately 45% in FY24, though its financials for the period are yet to be filed.
Founded in 2014 by Batti and Vara Kumar, Whatfix provides in-app guidance and performance support for businesses using web applications and software. The company assists enterprises in streamlining employee onboarding, training, and support.
With offices in the U.S., India, the UK, Germany, Singapore, and Australia, Whatfix supports over 700 enterprises, including more than 80 Fortune 500 companies such as Shell, Microsoft, Schneider Electric, UPS Supply Chain Solutions, and Genuine Parts Company.
“We are targeting a $100 million in revenues over the next 12 months and will likely to list over the next 24-36 months,” Batti said.
“Whatfix’s unique digital adoption platform is revolutionizing how organizations implement digital transformation programmes, create outstanding user experiences, and empower users to fully leverage software functionalities and enhance productivity,” said Narendra Ostawal, managing director and head of India Private Equity at Warburg Pincus. “Whatfix has immense potential to capitalize on the tailwinds and solidify its position in the high-growth DAP (digital adoption) market.”
Warburg Pincus has been increasing its investments in India, most recently acquiring a controlling stake in Ebco in a ₹3,000 crore deal.
