WalkMe raises $90 million to help people navigate user interfaces with on-screen prompts
WalkMe, a so-called “digital adoption platform” (DAP) that helps companies integrate on-screen product walkthroughs into their software, has raised $90 million in a round of funding led by Vitruvian Partners, with participation from Insight Partners.
This takes WalkMe’s total funding to more than $300 million, including its $50 million series F round last November at which point it was valued at more than $1 billion — the company now says that it has nearly doubled its valuation over the past year, meaning that it should be valued at around the $2 billion mark.
Founded in 2011, San Francisco-based WalkMe creates tools that enable software makers to build user-focused help functionality into their products. This may include tip-balloon overlays to highlight new or notable features, for example, which can be leveraged to train employees or onboard new customers. The technology can also be used to push users toward redeeming a free trial, or converting from a free to a paid user. The WalkMe platform also leans heavily on automation to make real-time contextual suggestions based on how a user is interacting with an interface.
With every company now effectively becoming a software company, the need to reduce bounce rates and increase product adoption through user-friendly interfaces has never been as important. And that is why being able to track how customers use online properties is so important. Countless companies use various tools to monitor drop-off rates on websites, thereby helping to identify areas that cause the most friction for customers and make improvements. WalkMe works in a similar vain, insofar as it is used to glean insights into end-user behavior, but on top of that it injects support tools into apps and websites to help in situations where a user may be likely to drop-off.
Above: WalkMe DAP
A number of companies operate in the DAP space, including San Jose’s Whatfix which raised a $12.5 million investment earlier this year, and Raleigh’s Pendo which raised $100 million two months ago at a $1 billion valuation. As it happens, WalkMe filed a lawsuit against Pendo last year, alleging that Pendo’s use of “lightboxes” and “tooltips” to help guide users through a software application violated its intellectual property — a New York District Court judge dismissed the case in April this year.
WalkMe said that it now works with some 2,000 clients globally, and in Q2 this year it passed $100 million in annual recurring revenue (ARR). With another $90 million in the bank, it said that it plans to double down on its global growth with a particular focus on Latin America.
“This latest round of funding speaks to our success and to the untapped potential of digital adoption,” noted WalkMe cofounder and president Rafael Sweary. “WalkMe transforms how organizations gain visibility into their end-to-end business processes, driving workforce productivity, increasing customer satisfaction, and achieving higher operational efficiencies.”
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