$225-million fundraise: Postman valuation hits $5.6 billion

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August 19, 2021 4:01 AM

Founded in Bengaluru and now headquartered in San Francisco, Postman today has more than 17 million users and 500,000 organisations on its platform. The company counts Salesforce, Microsoft, Cisco and PayPal among its customers.

The SaaS (software-as-a-service) start-up became a unicorn last year after it garnered $150 million in funding from investors at a valuation of $2 billion.The SaaS (software-as-a-service) start-up became a unicorn last year after it garnered $150 million in funding from investors at a valuation of $2 billion.

Postman, an application programming interface (API) development platform, has raised a fresh $225 million in funding led by existing investor Insight Partners at a valuation of $5.6 billion.

The investment, part of the company’s Series D financial round, was also backed by new investors Coatue, Battery Ventures, BOND and a clutch of existing investors, including CRV and Nexus Venture Partners.

DoorDash product leader Gokul Rajaram and Freshworks founder Girish Mathrubootham have also joined as individual investors, the company said in a statement on Wednesday.

The SaaS (software-as-a-service) start-up became a unicorn last year after it garnered $150 million in funding from investors at a valuation of $2 billion.

The company’s total fund count now stands at over $430 million.

Postman will use the fresh capital to expand its teams in the areas of sales, marketing, product, and engineering. The firm will also continue to invest in its community of developers across the globe, support students through innovative API literacy programmes, and contribute towards open source projects to foster a thriving API ecosystem.

Founded in Bengaluru and now headquartered in San Francisco, Postman today has more than 17 million users and 500,000 organisations on its platform. The company counts Salesforce, Microsoft, Cisco and PayPal among its customers.

Postman said APIs are growing in popularity, led by developers who are adopting the API-first model to build new applications faster, modernise legacy architectures, and scale business processes. Organisations are also adopting the API-first model to build and ship new products faster and create products of higher quality with less code. The start-up claims that the Postman app has been downloaded more than 60 million times so far.

Led by CEO and co-founder Abhinav Asthana, the company has added more than 300 employees across 13 countries since the beginning of 2020, more than doubling its headcount. “Postman has the opportunity to become a key pillar of how enterprises build, deliver products, and seamlessly enable partnerships across the ecosystem,” said Jeff Horing, managing director at Insight Partners in a statement.

Analysts expect the global SaaS market to cross $500 billion in revenue by 2025 growing at 18-20% annually. Owing to the digital transformation and automation in organisations across sectors, the Indian SaaS ecosystem has the potential to create $1 trillion in value and nearly half a million jobs by 2030, they said.

There are nearly a thousand funded SaaS companies in India which generate about $2-3 billion in total revenues and employ nearly 40,000 people, according to a report published by SaaSBOOMi, Asia’s largest community of SaaS founders and product builders in July.

Earlier this year, SaaS start-up BrowserStack founded by Ritesh Arora and Nakul Aggarwal bagged $200 million in funding at a valuation of $4 billion, joining the league of homegrown unicorns. Recently, SoftBank led a $100-million funding round in Pune and San Francisco-based Mindtickle at a valuation of $1.2 billion, another addition to the unicorn club.

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