The COVID-19 pandemic has supercharged the digital transformation market, with worldwide spending reaching a staggering $1.85 trillion in 2022, up more than 16% from the previous year. This surge is largely attributed to lockdowns and the shift to remote work, forcing brands to modernize their organizations.

Whatfix: Riding the Digital Transformation Wave

One company that has significantly benefited from this boom is Whatfix, a San Jose-based digital transformation firm. Recently, Whatfix closed a $125 million Series E round led by Warburg Pincus, valuing the company at around $900 million, 50% higher than its Series D valuation in 2021.

Founders’ Journey: From Failure to Success

Whatfix co-founders Khadim Batti and Vara Kumar met while working at Huawei in India. Initially, they attempted to build a business around a search engine optimization tool called Search Enabler but faced significant challenges due to user confusion. Batti recalls that customers struggled to implement the tool’s suggestions, which were often basic tasks like correcting website title errors.

Pivoting to Digital Adoption Platforms

This early failure sparked inspiration for Whatfix. The founders decided to pivot and create a platform that teaches people how to use new software. Today, Whatfix provides on-screen tutorials for around 750 apps, drawing from tens of thousands of pages of documentation. This digital adoption platform effectively "lays" on top of desktop and web apps to provide guidance for onboarding, suggested actions, and self-service support.

Massive User Base and Revenue Growth

Whatfix has an impressive user base of over 10 million users and 700 customers, including Shell, Microsoft, Schneider Electric, Cisco, and the EU’s European Centre for Disease Prevention and Control. The company boasts significant revenue growth, with a strong financial health that enables profitable expansion within its customer base.

IPO Possibilities

While Whatfix co-founder Khadim Batti remains tight-lipped about an initial public offering (IPO), Warburg Pincus has a proven track record in guiding companies to IPO and operating with public company positions. This raises interesting possibilities for the future of Whatfix.

Digital Adoption Platforms: A Booming Market

The digital transformation market is expected to continue growing, driven by increasing adoption of cloud computing, artificial intelligence, and the Internet of Things (IoT). As more companies seek to modernize their operations, digital adoption platforms like Whatfix are poised for significant growth.

Key Takeaways

• The COVID-19 pandemic has supercharged the digital transformation market.
• Whatfix is a leading digital transformation firm that has significantly benefited from this boom.
• The company’s founders pivoted from an initial failure to create a successful platform teaching people how to use new software.
• Whatfix boasts an impressive user base and revenue growth, with strong financial health.

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