Whatfix, a SaaS-based provider of digital adoption solutions, has raised almost $100 million in primary and secondary funding, with Sweet Nectar Investments (Warburg Pincus) and SoftBank leading the charge. This marks the first funding round the Bengaluru-based company has had in the previous three years.
According to Whatfix’s regulatory filings with the Registrar of Companies, the board approved a special resolution to issue 13,201 Series E compulsory convertible preference shares (CCPS) at an issue price of Rs 2,24,788.44 per share in order to raise Rs 296.74 crore in primary capital.
According to the filings, the deal also includes secondary funding totaling close to Rs 530 crore. Whatfix intends to grow and expand the business with the primary proceeds.
With funding of Rs 615 crore (Rs 271.7 crore primary and Rs 343.2 crore secondary), Sweet Nectar Investments (Warburg Pincus) led the round. SoftBank, the company’s current backer, contributed Rs 210.5 crore (Rs 25 crore primary and Rs 185.5 crore secondary).
By considering the same issue price, the secondary funding has been extracted. However, the transaction could also have taken place at a discount rate which reduces the overall amount raised.
Whatfix is estimated by the media to be worth between Rs 6,871 crore and $820–830 million (post-money). Prior to the most recent funding round, it had raised more than $140 million.
Whatfix is reportedly in talks to raise another round, in which early investors Helion Venture Partners and Eight Roads Ventures will make partial exits, according to a June report from the Economic Times.
SoftBank raised its ownership of the company after the round was allocated, to 15.51%, and Warburg Pincus’ Sweet Nectar Investments purchased 8.94% of the company’s shares (including the secondary transaction).
Whatfix is a web application and software performance support company founded by Khadim Batti and Vara Kumar. They offer in-app guidance. Large corporations and organizations can use its tools and integrate them into their own apps to help employees use them more effectively.
Whatfix saw a 31.2% increase in losses to Rs 328 crore in FY23 despite a 65.7% increase in operating revenue to Rs 285 crore. Significantly, Whatfix’s entire revenue stream came from the following international markets: Asia Pacific, Europe, America, and the Middle East. Europe came in second with about 61% of the revenue. The company hasn’t released its FY24 financials yet.
