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Warburg Pincus, a US-based private equity firm, is expected to spearhead a funding round of $100-150 million (approximately Rs 833 crore to Rs 1,250 crore) in SoftBank-backed Whatfix, a software-as-a-service (SaaS) firm. 

SoftBank, which owns over 13% of the company, is also anticipated to join this funding round, said a report by The Economic Times. According to sources, early investors Helion Venture Partnersand Eight Roads Ventureswill be making partial exits. Moreover, the round will also involve a combination of primary and secondary share sales.

YourStory has reached out to Whatfix with queries. 

The Bengaluru and US-based firm is expected to raise primary capital at a valuation of $800 million, according to sources, further suggesting that the secondary share sale will likely occur at a discounted rate.

With a valuation of $568 million in 2021 following its Series D funding round led by SoftBank Vision Fund, Whatfix was reportedly engaging with private equity firms and hedge funds to secure additional funding. Warburg Pincus had engaged in early-stage discussions with Whatfix in September last year, said the report. 

Khadim Batti had earlier confirmed to YourStory that the firm has engaged in discussions with private equity firms.

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“We want to avoid optimising too much on valuations and putting unnecessary pressure on employees,” Khadim Batti had told YourStory. 

“The company is not obsessed with the unicorn tag or specific valuation numbers. The company is taking a more pragmatic approach to valuation and fundraising. It is focused on growing its business sustainably and creating an upside for all stakeholders, rather than chasing short-term valuation gains,” he added. 

Founded in 2013 by Khadim Batti and Vara Kumar Namburu, Whatfix is a SaaS-based digital adoption platform that provides in-app guidance, training, and performance support for web applications and software products.

Some of its acquisitions include Airim, purchased in 2019; Nittio Learn in 2021; and LEAP in 2022. Additionally, in 2019, Whatfix backed Skillate, an AI-based HRtech firm, during its pre-Series A funding round of $1 million.

Last year, Whatfix announced achieving a milestone with $50 million in Annual Recurring Revenue. Documents filed with the Registrar of Companies revealed that the company experienced a nearly 66% increase in revenue from operations for FY23, amounting to Rs 284.7 crore (around $34.1 million), up from Rs 172.4 crore in FY22.