- Pendo, a product cloud software company, recently announced it raised $100 million in funding at a valuation of $1 billion
Product cloud company Pendo announced it raised $100 million in Series E funding led by Sapphire Ventures with participation from new investors General Atlantic and Tiger Global and existing investors Battery Ventures, Meritech Capital, FirstMark, Geodesic Capital, and Cross Creek.
Including this round, Pendo has now raised $206 million and the company plans to use the funding to accelerating global expansion and driving product development to meet the growing demand for software that makes digital products easier to use. With this funding round, Pendo is now valued at $1 billion.
“Product experience is how companies compete today, yet most digital products are still really hard to use,” said Pendo CEO and co-founder Todd Olson. “Many product teams still lack the basic tools they need to understand what their customers want, why customers come back, or what drives them away. Companies can’t deliver great digital products if they can’t answer those basic questions. Pendo has built the most comprehensive platform available today to help any company that interacts with customers digitally to drive growth through better product experiences.”
This round of funding comes at a time when companies of all sizes and industries are looking to increase their investment in software tools for product management and product operations teams. And according to a recent Gartner survey, 85% of companies are adopting a product-centric application delivery model.
Pendo has seen a three-year compound annual growth rate (CAGR) of 334% and now employs over 375 people worldwide. Plus the company’s bookings grew 108% in the second quarter over the same period of the prior fiscal year. Now it serves over 1,200 customers, including Verizon, ADP, Cardinal Health, RE/MAX, LabCorp, Bright Horizons, Okta, OpenTable, Salesforce, Zendesk, and the Michigan Supreme Court. And this year, Pendo completed its second acquisition: UK-based Receptive.io.
“As our global economy continues to transform digitally, product-led companies have a clear strategic advantage. Over the last few years, software for product teams has emerged as an important new category, and Pendo as a clear leader,” added Rajeev Dham, managing director at Sapphire Ventures and Pendo board member. “Pendo’s business fundamentals, growth, product suite, and incredible leadership team have set the company up to be a leading SaaS business for years to come.”