Whatfix Raises $125M Series E to Expand Digital Adoption Platform.

Whatfix, a digital adoption platform (DAP), has raised $125 million in its Series E funding round to expand its market presence in the AI and SaaS sectors led by Warburg Pincus. The round also witnessed participation from existing backer SoftBank Vision Fund 2.

This funding surge highlights a renewed interest in venture capital, particularly within India’s AI and SaaS sectors, as investors increasingly open their wallets after a previous slowdown.

According to sources familiar with the deal, the latest funding round valued Whatfix at $790 million pre-money and approximately $870 million post-money. Whatfix plans to utilize this capital to enhance its market presence across the US, EMEA, and APAC regions. Furthermore, the company aims to drive organic growth while exploring strategic acquisitions to expand its product offerings.

Founded in 2013 by Khadim Batti and Vara Kumar Namburu, Whatfix provides essential software solutions that simplify onboarding, performance support, and enterprise change management. With notable clients like Arrow Electronics, Schneider Electric, and Avnet, the company is well-positioned to capitalize on the increasing demand for digital adoption tools.

Strong Financial Performance of Whatfix

In the fiscal year 2023, Whatfix reported revenues of INR 285 crores, representing a robust 65 percent increase. However, the company’s losses widened by 31 percent, reaching INR 328 crores, mainly due to rising expenses. Despite this, Batti expressed optimism, stating the firm anticipates breaking even on an EBITDA basis within the next 7 to 8 quarters.

“We have started hiring in Southeast Asia and the Middle East or Dubai market, where we are expanding. So, we are also entering these newer geographies with the new funding. We are also strengthening our product categories, which include generative AI products,” said Khadim Batti, cofounder and CEO of Whatfix.

Whatfix’s remarkable growth trajectory since its previous funding round in June 2021 underscores its leadership in the DAP space. The company has reported a 4.5X increase in annual recurring revenue (ARR), with new product offerings contributing 15 percent to its revenue stream.

Future Prospects

With its latest funding, Whatfix aims to solidify its position as a category leader in digital adoption solutions. The company is also developing its own generative artificial intelligence (Gen AI) vision model, enhancing its capabilities to better serve its global clientele. As venture capitalists continue to invest heavily in the fintech, AI, and SaaS sectors, Whatfix is well-equipped to leverage this momentum.

“We are rolling out an intermediate product in the next quarter that understands the knowledge of the application, the support and the data we have and generates the content automatically. Whatfix was used to create the workflows or walk-throughs, but now that can be created with this new product,” Batti said.

“This investment will add more fuel to the tank, accelerating a new era of innovation for our industry, bolstering the unparalleled value we bring to our customers, and reshaping the future of software adoption,” Batti added.

Whatfix’s recent funding reflects confidence in its business model. It emphasizes the broader recovery in the investment landscape, particularly for technology-focused startups.

Integrating GenAI throughout its product suite, offering digital adoption, product analytics, and application simulation, Whatfix accelerates this user-first approach, building an experience layer across the enterprise software stack.

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