SaaS-based digital adoption solution provider Whatfix has successfully raised nearly $100 million in a recent funding round, marking its first investment round in the past three years. The funding was led by Sweet Nectar Investments (Warburg Pincus) and SoftBank, and includes both primary and secondary capital.
According to the company’s regulatory filings with the Registrar of Companies, Whatfix’s board approved the issuance of 13,201 Series E compulsory convertible preference shares (CCPS) at an issue price of Rs 2,24,788.44 per share. This move is set to raise Rs 296.74 crore in primary capital. In addition to the primary funding, the transaction also encompasses secondary funding amounting to nearly Rs 530 crore.
Sweet Nectar Investments, part of Warburg Pincus, led the funding round with an investment of Rs 615 crore, which includes Rs 271.7 crore in primary and Rs 343.2 crore in secondary funding. SoftBank, an existing backer of Whatfix, contributed Rs 210.5 crore, with Rs 25 crore allocated to primary and Rs 185.5 crore to secondary funding.
The secondary funding amount was determined based on the same issue price, although the transaction could have potentially been executed at a discounted rate, which would have affected the total raised amount.
The startup intelligence platform TheKredible estimates Whatfix’s valuation at around Rs 6,871 crore or $820-830 million post-money. Prior to this funding round, Whatfix had raised over $140 million.
The Economic Times reported in June that Whatfix was negotiating a new funding round that would facilitate partial exits for early investors Helion Venture Partners and Eight Roads Ventures.
Following this round, SoftBank’s stake in Whatfix increased to 15.51%, while Warburg Pincus’ Sweet Nectar Investments acquired an 8.94% shareholding in the company, including secondary transactions.
Founded by Khadim Batti and Vara Kumar, Whatfix offers in-app guidance and performance support for web applications and software products. Its solutions are utilized by large corporations and organizations to enhance workforce efficiency in using various applications.
Whatfix experienced a 65.7% increase in revenue from operations, reaching Rs 285 crore, although its losses rose by 31.2% to Rs 328 crore for FY23. Notably, all revenue was generated from international markets, with the US contributing approximately 61% and Europe following. The company has yet to disclose its financial results for FY24.
This funding news was first reported by Entrackr.