Whatfix defies SaaS funding slump with $125 mn Series E round, CEO Batti talks IPO path

Indian SaaS player Whatfix, a leader in Digital Adoption Platforms (DAPs), has raised $125 million in a Series E funding round led by Warburg Pincus, with existing investor SoftBank Vision Fund 2 also participating. The fresh round of capital, raised at a 50% premium, further cements Whatfix's dominance in the DAP space while enabling its expansion into adjacent offerings.

With dual headquarters in San Jose, California, and Bengaluru, Whatfix is now edging closer to unicorn status, with plans for an IPO within the next couple of years. Talking to Business Today, Khadim Batti, CEO and co-founder of Whatfix, expressed confidence in the company's trajectory. “We plan to touch $100 million ARR in a few quarters and break even in 7 to 8 quarters, paving the way for our IPO,” said Batti.

The funding will accelerate Whatfix’s growth, focusing on category leadership, enhancing its integrated product suite, and pursuing strategic acquisitions. Expansion across key regions like the US, EMEA, and APAC is also on the agenda, as Whatfix aims to bolster its presence in the global public sector.

This comes at a time when SaaS funding has slowed since 2022, with venture capitalists exercising caution, particularly at later stages. Despite this challenging environment, Whatfix has managed to secure its latest funding at a premium, a testament to its exceptional growth and market leadership. Batti highlighted this achievement, stating, “Our leadership in the DAP market and solid performance made us stand out in a tough market.”

Whatfix serves a global clientele that includes Arrow Electronics, Schneider Electric, and Avnet, while working with partners like Microsoft, Salesforce, Infosys, and Accenture. Supporting over 80 Fortune 500 companies, the company has seen a 4.5x increase in annual recurring revenue (ARR) since its last funding round in 2021. Bhatti also noted that 40% of existing customers have increased their spending on Whatfix over the last three years, and new products now account for 15% of its total revenue.

At the forefront of innovation, Whatfix introduced the concept of "Userization," shifting the burden of adaptation from users to technology. By leveraging GenAI, Whatfix has built a user-first experience layer across the enterprise software stack, offering digital adoption, product analytics, and application simulation to maximize technology ROI while driving employee productivity.

“Enterprises are navigating complex digital transformations and are under pressure to deliver seamless user experiences,” said Batti. He added that Whatfix has launched four new products since 2021, secured five US patents, and has 18 more patents in the pipeline. “This new investment will fuel our innovation, enhancing the unparalleled value we bring to customers and reshaping the future of software adoption.”

As demand grows for AI-driven, personalized solutions, Whatfix is positioning itself to stay competitive in the evolving SaaS landscape. Batti emphasized that the future of digital adoption lies in predictive, context-aware assistance that anticipates user needs and provides real-time, dynamic support, setting Whatfix apart as it continues to evolve.

Narendra Rathi, Investment Director, from SoftBank Investment Advisers, added, "Since our initial investment in 2021, we are pleased to see Whatfix’s strong growth and sustained innovation. Their role in the digital transformation journeys of Fortune 500 companies is a testament to their customer focus. We are excited to continue backing Khadim and Vara as they enter their next phase of growth."

Narendra Ostawal, Managing Director, Head of India Private Equity, Warburg Pincus, said, “As a partner of choice for top global enterprises across industries, we believe Whatfix has immense potential to capitalize on the tailwinds and solidify its position in the high-growth DAP market. We are delighted to partner with the Whatfix team led by Khadim and Vara, as they steer the company towards its vision and goal.”