Qualgro leads $8 million Series A round in SaaS firm Hevo

ThinkStock Photos Existing investors Chiratae Ventures and Sequoia Capital India’s Surge also participated in the round. SaaS platform Hevo has …
SaaS platform Hevo has raised $8 million in its Series A funding round led by Qualgro, a Singapore-based venture capital firm, along with former Stripe top executive Lachy Groom, as it looks to expand into new markets.

Existing investors Chiratae Ventures and Sequoia Capital India’s Surge also participated in the round.

Hevo helps businesses in integrating multiple sources of data from functions such as sales, marketing, operations, and finance, enabling companies to monitor their performance metrics and make decisions in real-time.

Small to medium-sized companies use more than 40 different SaaS applications and these data silos prevent them from seeing a full picture of their customers’ journey, making it difficult for businesses to monitor performance metrics, the startup said.

“We enable companies to eliminate data silos without having to set-up an engineering team to build and maintain complex integrations with multiple systems,” Manish Jethani, co-founder of Hevo, said. The company largely focuses on online commerce, financial technology and healthcare sectors, which rely heavily on customer data to drive sales.

Founded in 2017 by IIT alumni Jethani and Sourabh Agarwal, Hevo currently has customers in the United States, India, France, Australia, and Hong Kong. Its clients include Marqeta, a US-based payments company valued at over $4 billion.

The proceeds from the Series A round will be used to accelerate Hevo’s global geographic expansion, as well as building a team across technology, sales, and marketing functions.

Related Posts:

  • No Related Posts

Never Heard of Adaptive Applications? It’s F5 Networks’ Long-Term Vision

That strong software revenue growth was boosted by the company’s recent acquisitions of the ADC specialist NGINX and the cybersecurity outfit Shape …

F5 Networks(NASDAQ:FFIV) posted better-than-expected fiscal third-quarter results, despite the coronavirus pandemic. The application delivery specialist is transitioning from its legacy hardware business to a software-based portfolio, and during the earnings call, CEO Francois Locoh-Donou announced its long-term plan: developing a unified platform for adaptive applications. Here’s what that means for the company and its shareholders.

F5 transformation is on its way

F5’s legacy business sells hardware application delivery controllers (ADCs), also called load balancers, to optimize the performance of applications by distributing traffic load across multiple servers.

But with the shift to cloud computing, enterprises have been moving more infrastructure and applications to the cloud, making F5’s legacy on-premises products less relevant. As a result, the company adapted its portfolio with software solutions that deal with cloud applications and infrastructure.

Fours hands holding pieces of jigsaw puzzle.

Image source: Getty Images.

The company’s fiscal third-quarter performance confirmed that the shift to software is materializing. Revenue increased by 4% year over year to $586 million, with services up 5% to $330 million. But that revenue growth partially hides the divergent trajectories of F5’s hardware business (down 12% to $159 million) and software solutions (up 43% to $97 million).

That strong software revenue growth was boosted by the company’s recent acquisitions of the ADC specialist NGINX and the cybersecurity outfit Shape Security, though. Excluding acquisitions, revenue from the software segment would have grown by only 14% year over year.

What’s behind adaptive applications

The decline of F5’s legacy hardware business should continue over the long term. During the earnings call, Locoh-Donou discussed the long-term strategy to offset that decline and keep growing the company’s software business over the next several years with a solution for adaptive applications. But what does that mean, exactly?

As enterprises move their applications to the cloud, they benefit from the capacity to scale resources on demand. However, cloud computing also involves extra challenges. Securing and optimizing applications across multiple public and private clouds has become more complex, as it requires several layers of solutions with different tools, sometimes from different vendors.

F5 aims to create a unified platform to simplify and automate the management of cloud-hosted applications by leveraging its existing solutions. The company has already integrated some of its different components following recent acquisitions. For instance, its Silverline managed services platform now integrates Shape Security’s technology.

But F5 will take that integration a step further, leveraging its telemetry capabilities with its core application delivery services that sit between users and applications. With the collected information, it will feed Shape Security’s artificial intelligence engine to create an analytics platform that will lead to business insights. Applications will use that knowledge to automatically scale and protect themselves depending on demand and security threats, for example.

The strategy makes sense. It allows F5 to leverage its existing software solutions and propose a differentiating and innovative offering aimed at addressing a growing pain for enterprises.

Reasonable valuation

Yet the market doesn’t seem to expect adaptive applications will boost the company’s top line over the long term. F5 stock trades at modest enterprise value-to-sales and forward price-to-earnings (P/E) ratios of 4.1 and 15.2, respectively, which contrast with the lofty valuations of some high-growth tech stocks.

In addition, despite the pressure on its operating margins because of its recent acquisitions of NGINX and Shape Security, the company remains profitable. Its third-quarter non-GAAP (adjusted) operating margin dropped to 28.6% compared to 33.1% in the prior-year quarter, but margins should improve as F5 integrates and scales those acquisitions.

Also, with $813.4 million of cash, cash equivalents, and short- and long-term investments in excess of total debt at the end of last quarter, the company seems immune from financial challenges if a prolonged recession materializes.

Shareholders should remain patient, though. The planned unified platform for adaptive applications is a long-term effort that should become visible in the company’s financial results beyond the next couple of years.

Related Posts:

  • No Related Posts

Sequoia-backed Hevo raises $8 million in Series A funding

Existing Investors Chiratae Ventures and Sequoia Capital’s accelerator programme Surge also participated in this round. The funds will be used to …

Existing Investors Chiratae Ventures and Sequoia Capital’s accelerator programme Surge also participated in this round.

The funds will be used to accelerate Hevo’s global expansion and will expand its team across functions of technology, sales, and marketing.

The three year old startup, started by IIT alumni, Manish Jethani and Sourabh Agarwal, offers a software-as-a service (SaaS) platform to connect to multiple sources of data across the company, helping clients to streamline their analytics and leverage data to make business decisions.

“Adoption of SaaS-based software is rapidly growing in companies of all sizes, but increasingly, the adoption of different applications across departments such as Sales, Marketing, Operations, Finance, and Support creates data silos as these applications don’t talk to each other. Even small to medium-sized companies use more than 40 different SaaS applications and these data silos prevent them from seeing a full picture of their customers’ journey,” said Jethani .

Hevo solves the problem of data silos, by offering a completely self-serve and fully automated platform, so analytics teams can start using it without depending on internal Engineering and IT.

With offices in San Francisco and Bengaluru, Hevo currently has customers in the United States, India, France, Australia, Hong Kong, as well as in 15 other countries.

“Hevo’s founders are the type of globally-minded entrepreneurs that we like to support. They provide a truly innovative solution for extracting and transforming data across multiple data sources – in real-time with full automation. This helps enterprises to fully capture the benefit of data flowing through the many databases and software they currently use.” said Heang Chhor, Managing Partner of Qualgro.

Earlier in October, last year, Hevo had also raised $4 million as a part of its seed funding round led by Sequoia Capital’s Surge and Chiratae Ventures.

Subscribe to newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperLivemint.com is now on Telegram. Join Livemint channel in your Telegram and stay updated

Related Posts:

  • No Related Posts

Stack Overflow raises $85M to accelerate development of its Teams software

The Series E round was led by GIC and included Silver Lake Waterman, Andreessen Horowitz, Index Ventures, Spark Capital and Union Square …

Programming-oriented question-and-answer startup Stack Overflow announced today it has raised a hefty $85 million in late-stage funding to accelerate the development of the company’s Teams software as a service knowledge management and collaboration offering as well as to expand into new markets.

The Series E round was led by GIC and included Silver Lake Waterman, Andreessen Horowitz, Index Ventures, Spark Capital and Union Square Ventures.

Founded in 2008, Stack Overflow has become a leader in Q&A for professional and enthusiast programmers through its extensive membership. The company’s open community offers a voting platform similar to Reddit that allows programmers to obtain answers and share their knowledge with others.

Stack Overflow’s service is more than its open community platform in 2020, however. The company provides a collaboration platform for developers and technologists to break down silos and work asynchronously, with an aim to ship products faster, accelerate onboarding, improve customer experience and drive innovation. Stack Overflow for Teams, the company’s private paid service, is pitched as a “home base for mission-critical knowledge” designed to assist companies in managing development internally with a focus on building products.

Complementary product offerings include an employment and hiring service to match companies with Stack Overflow users. The site has a community of more than 50 million monthly visitors along with 70 million more who visit Stack Exchange, the company’s network of other sites.

Stack Overflow for Teams has more than 200,000 paid users across more than 5,000 teams. Notable customers include Bloomberg L.P., Elastic NV, Expensify Inc., Microsoft Corp., Wix.com Ltd. and Zapier Inc..

The company said in a statement that given that the pandemic has reshaped what the future of work looks like. Stack Overflow for Teams “addresses this emerging customer need by connecting distributed employees and enabling them to easily access a central source of knowledge to unlock information,” the company said.

Prashanth Chandrasekar (pictured), chief executive officer of Stack Overflow, spoke to SiliconANGLE Media’s video studio theCUBE in May discussing the company’s transition to SaaS.

“We know we’re in this beautiful Goldilocks zone of digital transformation where everybody is accelerating, even given the current environment,” Chandrasekar explained. “In our Teams business, it’s all about our customers getting value from the collaboration SaaS platform that they’ve signed up for. We are really trying to transform and accelerate into a SaaS company.”

Photo: SiliconANGLE

Since you’re here …

Show your support for our mission with our one-click subscription to our YouTube channel (below). The more subscribers we have, the more YouTube will suggest relevant enterprise and emerging technology content to you. Thanks!

Support our mission: >>>>>> SUBSCRIBE NOW >>>>>> to our YouTube channel.

… We’d also like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.

If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.

Related Posts:

  • No Related Posts

Stack Overflow raises $85M in Series E funding to further accelerate SaaS business

… Andreessen Horowitz, Index Ventures, Spark Capital, and Union Square Ventures (USV). The round brings Stack Overflow’s total funding to $153M.

NEW YORK–(BUSINESS WIRE)–Jul 28, 2020–

Stack Overflow, the most trusted platform for developers and technologists visited by more than 120 million people each month, today announced $85M in Series E funding led by GIC with participation from new investor Silver Lake Waterman and existing investors Andreessen Horowitz, Index Ventures, Spark Capital, and Union Square Ventures (USV). The round brings Stack Overflow’s total funding to $153M.

The new financing will be used to accelerate the company’s SaaS knowledge management and collaboration offering, Stack Overflow for Teams. The funding comes on the heels of the product’s significant momentum, with Stack Overflow for Teams’ revenue doubling every year since launching in 2017.

A collaboration platform for developers and technologists to break down silos and work asynchronously to ship products faster, accelerate onboarding, improve customer experience and drive innovation, Stack Overflow for Teams is used by thousands of companies including Bloomberg, Elastic, Expensify, Microsoft, Wix and Zapier. Stack Overflow for Teams is seeing rapid adoption as startups and large enterprises embrace platforms to streamline developer and technologist workflows and integrate tools for transparency, security and communication. Over 200,000 paid users across more than 5,000 teams use the platform across Engineering, Product Management, Data Science and Customer Support.

“This $85 million in new funding, fueled by the growth of Stack Overflow for Teams, allows Stack Overflow to scale rapidly, to accelerate our transformation into a leading SaaS company, to expand into new markets, and to continue to invest in our public platform and the community that is the foundation of our company,” said Stack Overflow CEO Prashanth Chandrasekar. As part of the recent financing, Chandrasekar will join the board of Stack Overflow. A senior leader and cloud veteran from Rackspace, he was appointed CEO of the company in October 2019.

COVID-19 has reshaped what the future of work looks like, with a recent Gartner poll showing that 48% of employees will likely work remotely at least part of the time after COVID-19 versus 30% before the pandemic. Stack Overflow for Teams addresses this emerging customer need by connecting distributed employees and enabling them to easily access a central source of knowledge to unlock information. Forrester’s The Total Economic Impact of Stack Overflow for Teams report found the product has an ROI of 179% for organizations that use it.

“Stack Overflow for Teams makes it easy for our developers to find the information they need quickly. It reduces the repetition of questions internally and eliminates cross-functional silos,” said Chris Thomas, Managing Director at Moody’s Analytics, a customer of Stack Overflow. “Stack Overflow for Teams helps us drive more collaboration and innovation at Moody’s Analytics, especially as we’ve gone fully remote.”

About Stack Overflow:

Stack Overflow is helping developers and technologists write the script of the future. More than 120 million unique visitors come to Stack Overflow’s public platform every month making it one of the 50 most-visited websites in the world. Stack Overflow’s products include a SaaS knowledge management and collaboration offering, Stack Overflow for Teams, in addition to Stack Overflow Advertising and Stack Overflow Talent. Through its products Stack Overflow partners with top companies such as Bloomberg, Microsoft, Wix, Expensify, and more to help them enable, understand, hire, and engage the world’s developers and technologists. Founded in 2008, Stack Overflow is headquartered in New York.

About GIC

GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In private equity, GIC invests through funds as well as directly in companies, partnering with its fund managers and management teams to help world class businesses achieve their objectives. GIC has invested in the technology space for nearly 40 years and seeks to be a lifetime partner to the companies it invests in. Headquartered in Singapore, GIC employs over 1,700 people across 10 offices in key financial cities worldwide. For more information about GIC, please visit www.gic.com.sg or follow us on LinkedIn.

About Silver Lake Waterman

Silver Lake Waterman is part of Silver Lake, the global leader in technology investing with about $40 billion in combined assets under management and committed capital and a team of approximately 100 investment and value creation professionals located in Silicon Valley, New York, London and Hong Kong. Silver Lake Waterman focuses on providing flexible expansion capital to later-stage growth companies in the technology and technology-enabled industries. For more information about Silver Lake Waterman and Silver Lake, please visit www.silverlake.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200728005330/en/

CONTACT: Maggie Squires

press@stackoverflow.com

901-230-6514

KEYWORD: NORTH AMERICA UNITED STATES UNITED KINGDOM EUROPE GERMANY NEW YORK

INDUSTRY KEYWORD: DATA MANAGEMENT SECURITY TECHNOLOGY SOFTWARE NETWORKS INTERNET

SOURCE: Stack Overflow

Copyright Business Wire 2020.

PUB: 07/28/2020 10:00 AM/DISC: 07/28/2020 10:01 AM

http://www.businesswire.com/news/home/20200728005330/en

Related Posts:

  • No Related Posts