LOS ANGELES, March 26, 2021 /PRNewswire/ -- ServiceTitan, the world's leading provider of software for the trades, today announced a $500 million round at an $8.3 billion valuation. The round was led by Tiger Global Management and Sequoia Capital Global Equities with participation from H.I.G. Growth Partners. Existing investors participated, including Arena Holdings, Battery Ventures, Bessemer Venture Partners, Dragoneer Investment Group, Durable Capital Partners LP, ICONIQ Growth, Index Ventures, and funds and accounts advised by T. Rowe Price Associates, Inc.
This milestone represents the highest valuation and the largest investment for any private vertical software company in the world. The capital raised will be used to fuel rapid growth as the company continues to invest in customer experience, product development, and hiring top talent around the globe.
ServiceTitan also announced that it has surpassed $250 million in annual recurring revenue, having grown more than 50% over the past twelve months. The company serves more than 7,500 contracting businesses that collectively employ more than 100,000 technicians and perform more than $20 billion worth of annual transactions across various home and commercial service verticals, including plumbing, air conditioning, electrical, and more.
"We depend on the men and women of the trades to maintain our life support systems: running water, heat, air conditioning, and power," said Ara Mahdessian, co-founder and CEO of ServiceTitan. "Today, as both homeownership rates and time spent at home reach record highs, these essential service providers are facing rising demand from an increasingly tech-savvy homeowner. By providing contractors with the tools they need to deliver a great customer experience and grow their businesses with ease, ServiceTitan is enabling the hardworking men and women of the trades to reach the level of success they deserve."
To help trade businesses navigate the pandemic, ServiceTitan partnered closely with its customers to develop a variety of features that enable technicians to provide homeowners with a truly contactless experience. In addition, ServiceTitan interviewed hundreds of customers to launch a playbook on how to adapt operations to succeed through COVID-19, along with an online community for contractors to share best practices with one another.
"ServiceTitan is powering a massive industry that has been underserved by technology for years," said Chase Coleman, Partner and Founder, Tiger Global Management. "We admire the culture that Ara and Vahe have developed, and we are incredibly excited to partner with them as they build the operating system for residential and commercial field services businesses."
"ServiceTitan's impressive growth demonstrates just how essential this technology is for the more than 5 million Americans who work in the trades," said Jeff Wang, Managing Partner at Sequoia Capital Global Equities. "The ServiceTitan team is relentlessly focused on delivering value to their customers and solving the biggest problems facing this industry. It's this deep industry expertise that enables the company to develop best-in-class software designed to help contractors build successful businesses and deliver a stellar customer experience."
"We're in the early innings of a fundamental shift. Software is transforming the trades industry to meet consumer demand for greater technology adoption and a mobile-first user experience," said Tony Tamer, Co-Founder and Co-CEO of H.I.G. Capital. "ServiceTitan is building mission-critical software that not only addresses key challenges faced by residential and commercial contractors, but also drives new growth opportunities across the broader home services ecosystem."
Mahdessian and co-founder and President Vahe Kuzoyan launched ServiceTitan in 2012 as a solution for their fathers, who both worked in the trades. Recently ranked #11 on the Forbes Cloud 100 and named to the LA Business Journal's Best Places to Work for the third straight year, ServiceTitan is on a mission to change the lives of tradespeople who have been traditionally underserved by enterprise software. The company is hiring top talent across the board, particularly in customer support, sales, product, and engineering.
For more information about ServiceTitan, visit http://www.servicetitan.com
ServiceTitan® is a software company built to accelerate the home and commercial service industries. The company's end-to-end software suite includes CRM, intelligent dispatch, custom reporting, marketing automation, a mobile solution for field techs, and accounting, payments and financing integrations. By bringing a fully operational modern SaaS infrastructure to an industry traditionally underserved by technology, ServiceTitan makes a direct and positive impact on the lives of thousands of entrepreneurs and their extended teams. ServiceTitan is backed by world-class investors including Tiger Global Management, Sequoia Capital Global Equities, Bessemer Venture Partners and ICONIQ Growth.
About Tiger Global Management
Tiger Global Management, LLC is an investment firm that focuses on private and public companies in the global Internet, software, consumer, and payments industries. The Firm's private equity strategy was launched in 2003 and has invested in hundreds of companies across more than 30 countries, in all stages of funding – from Series A to pre-IPO. The venture business, currently investing its twelfth fund, aims to partner with dynamic entrepreneurs operating market-leading growth companies; examples include JD.com, Meituan, Facebook, LinkedIn, Spotify, Peloton, Credit Karma, Toast, Stripe, ByteDance, Stone, Warby Parker, Flipkart, Despegar, Ola and DiDi. Tiger Global was founded in 2001 and is based in New York with affiliate offices in Hong Kong, Beijing, Singapore and Bangalore.
About Sequoia Capital Global Equities
Sequoia helps daring founders build legendary companies from idea to IPO and beyond. Sequoia Capital Global Equities (SCGE) was founded in 2009 to expand Sequoia's technology investing efforts into the public markets. SCGE invests primarily in public companies and late-stage private companies, focusing on identifying disruptive technology themes and seeking to invest in long-term winners in large markets.
About H.I.G. Growth Partners
H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global alternative investment firm with more than $43 billion of equity capital under management. H.I.G. Growth seeks to make both majority and minority investments in strong, growth-oriented businesses located throughout North America, Europe and Latin America. H.I.G. Growth Partners considers investments across all industries but focuses on certain high-growth sectors where it has extensive in-house expertise such as technology, healthcare, internet and media, consumer products and technology-enabled financial and business services. H.I.G. Growth strives to work closely with its management teams to serve as an experienced resource, providing broad-based strategic, operational, recruiting, and financial management services from a vast in-house team and a substantial network of third-party relationships. For more information, please refer to the H.I.G. website at www.HIGgrowth.com.