The bloodbath in the market continues – affecting SaaS companies too. Companies like UiPath, Marqeta, and Toast have lost 65 percent of their value. Many organizations are also scrapping their plans of going public. But that doesn’t mean that there’s no action in this space. So here’s everything that deserves your attention in the world of SaaS.
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News of the week
Zoom dives deeper into intelligent customer service with Solvvy acquisition
Video conferencing software Zoom has been trying to diversify. Its latest step in that direction is the acquisition of Solvvy which focuses on conversational AI. This will help Zoom improve its Contact Center offering.
Google’s trying to fix your crappy webcam with great AI
The annual Google I/O was held earlier last week, when the internet giant made several announcements. While most of them were consumer-centric, it also announced some improvements to its Workspace suite. Chief among them is Portrait Restore which improves and sharpens your image on a Google Meet call. Then there’s Portrait Lighting which provides AI-based controls to adjust the lighting.
Palantir profit miss, downbeat revenue forecast send shares tumbling
Palantir announced its first-quarter results where it achieved revenue of $446.4million, slightly above analyst expectations. However, it forecasted a lower revenue for the second quarter, which resulted in its share prices tumbling down by 15 percent.
SaaS companies that got the funding this week
HR Path receives €225million in financing
HR software HR Path has raised €225million (~$236million) funding led by Andera Partners. The Paris-based company is aiming to double its turnover within five years as it expands its geographical presence.
SaaS payments infrastructure company Paddle raises $200million
Payment infrastructure provider Paddle has closed a $200million Series D funding round. The company takes care of everything related to payments, from billing to subscription management, tax and compliance, invoicing, and more. The fund infusion was led by KKR and values Paddle at $1.4billion.
Gusto raises an extension round, following Faire as unicorns react to a changing market
Payroll software Gusto has extended its Series E round from 2021 by securing around $55million as per the reports. It’s worth noting that extending the round signifies that Gusto raised the money as the same valuation as the last year – $10billion.
Business intelligence and analytics firm Pyramid Analytics raises $120million
BI or business intelligence is becoming more important than ever, so it’s not surprising to see the space seeing a lot of competition. Pyramid Analytics has nabbed a $120million investment as part of the Series E round. Co-led by H.I.G. Growth Partners, Clal Insurance Enterprises Holdings, and General Oriental, the company is nearing the unicorn valuation.
SirionLabs lands $85million to inject contract management with automation
Contract Lifecycle Management (CLM) software SirionLabs has received $85million in Series D financing. Led by Partners Group, the company aims to increase its employee base by the end of this year with the latest funding.
Related read: Interview with Aditya Gupta, Chief Architect and Co-founder at SirionLabs
Scoop: Deel raises funds at $12billion valuation
Axios reports that remote hiring startup Deel has more than doubled its valuation from $5.5billion with its latest funding round of $50million. New investors in the company include Emerson Collective.
No-code SaaS insurance platform CoverGo got a $15million investment as part of its Series A funding. The platform helps insurance companies to launch new insurance products within days along with developing their distribution and claim process.
Must reads
India focus: how SaaS is proliferating in the subcontinent
Last week, Forbes India magazine came out with its special SaaS Rising series, covering the leading players and emerging startups from the country. The coverage gives a good understanding of how Freshworks is embracing the current downturn, how BrowserStack became profitable, and new-age companies like Darwinbox and Hasura, among other things.
Need for ARR-based valuation amid unicorn ‘hype,’ says BVP report
Listen to
Fleetio: how a solo founder built an 8-figure SaaS business – with Tony Summerville
Fleet management software Fleetio helps in automating fleet operations. In this podcast, its founder and CEO Tony Summerville share his journey into the world of SaaS, what makes Fleetio different, and how he has been able to scale it up to millions of ARR.
Positioning masterclass with April Dunford (bestselling author and marketing guru)
Positioning masterclass with April Dunford (bestselling author and marketing guru)April Dunford, the author of Obviously Awesome, is known for helping companies figure out their positioning. In this episode, she discusses all about positioning, what people get wrong about it, how to highlight salient features of the products, and how to do it correctly in different geographies.
Yaw Aning (Malomo): services founder vs. SaaS founder
There are several case studies of SaaS startups emerging from an agency business. Malomo is no different, as it was building apps for its clients. It decided to address the problems faced by its e-commerce clients and selling to them first helped it gain validation for the product-market fit. Listen to its co-founder and CEO about his journey to Malomo.
Watch
State of the cloud 2022
Bessemer Venture Partners’ State of the Cloud report has become an annual tradition as it packs a ton of insights about the fast-paced SaaS industry. Watch (or if you prefer slideshows, check that here) the video to see why the cloud still holds so much promise, how software-as-a-service is evolving, why valuations aren’t the best way to measure successful companies, and more.
