Jan
18
2021
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Salesforce leads $15M investment in Asian HR tech platform Darwinbox

Darwinbox, which operates a cloud-based human resource management platform, has raised $15 million in a new financing round as the Indian startup looks to further expand in the country and Southeast Asian markets.

The new round — a Series C — for the Hyderabad-headquartered startup was led by Salesforce Ventures, the venture arm of the American enterprise giant. This is one of Salesforce Ventures’ rare investments in Asia. Existing investors, including Lightspeed India and Sequoia Capital India, also participated in the round, which brings the five-year-old startup’s raise to-date to about $35 million.

More than 500 firms — including Tokopedia, Indorama, JG Summit Group, Zilingo, Zalora, Fave, Adani, Mahindra, Kotak, TVS, National Stock Exchange, Ujjivan Small Finance Bank, Dr.Reddy’s, Nivea, Puma, Swiggy and Bigbasket — use Darwinbox’s HR platform to provide more than a million employees of theirs with a range of features in 60 nations, up from about 200 firms across 50 nations in late 2019, said Chaitanya Peddi, co-founder of Darwinbox, in an interview with TechCrunch.

Peddi said the startup has always looked up to Salesforce for inspiration, and investment from the enterprise giant is “nothing sort of a child receiving validation from their father,” he said.

The fundraise caps the most successful year for the startup that started with uncertainty as the coronavirus spread across Asian nations. The startup initially took a hit as its customers scrambled to navigate through the global pandemic, but the last two quarters have been its best to date, said Peddi.

Overall, the startup’s revenue has ballooned by 300% since September 2019, when it last raised money, he said. “In HR tech and SaaS space, we are now only behind SAP and Oracle in India in terms of revenue,” he said.

Dev Khare, a partner at Lightspeed India, an early backer of the startup, said that Darwinbox has become the preferred human capital management solution for Asian conglomerates, governments and high-growth businesses and multi-national corporations operating in Asia as they witness digital transformation.

Image Credits: Darwinbox

Darwinbox’s platform is built to take care of the entire “hiring to retiring” cycle needs of employees. It handles onboarding of new hires, keeps a tab on their performance, monitors attrition rate, and provides an ongoing feedback loop.

It also provides its customers with a social network for their employees to remain connected with one another and an AI assistant to apply for a leave or set up meetings with quick voice commands from their phones.

Peddi said the startup will deploy the fresh capital to expand to several more countries, especially in more emerging markets in the Middle East Asia and Africa, and broaden its offerings. “We will be leveraging the power of our platform to do a lot more. We are a product-led firm and our focus will remain on innovation in that space,” he said. The startup is also open to exploring opportunities to acquire smaller firms for inorganic growth, he said.

“India is home to one of the world’s youngest populations, and by 2050, it is expected to account for over 18% of the global working age population,” said Arundhati Bhattacharya, chairperson and CEO, Salesforce India, in a statement. “This makes technology platforms like Darwinbox, that focuses on workforces, incredibly important. I’m proud that Salesforce is supporting Darwinbox on their journey as they continue to grow and innovate in this space.”

Alex Kayyal, partner and head of international at Salesforce Ventures, told TechCrunch in an interview that the firm helps its partners in a number of ways, including exposing them to the firm’s customers, executives and their networks, and helping startups scale their business.

“We have one of the most innovative and disruptive customer bases that are looking for cloud solutions and digital transformation. So the opportunity to expose companies like Darwinbox to our customer base is something we get really excited about,” said Kayyal. Salesforce Ventures is exploring more investment opportunities in India, he said.

Dec
16
2020
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BigID keeps rolling with $70M Series D on $1B valuation

BigID has been on the investment fast track, raising $94 million over three rounds that started in January 2018. Today, that investment train kept rolling as the company announced a $70 million Series D on a valuation of $1 billion.

Salesforce Ventures and Tiger Global co-led the round with participation from existing investors Bessemer Venture Partners, Scale Venture Partners and Boldstart Ventures. The company has raised almost $165 million in just over two years.

BigID is attracting this kind of investment by building a security and privacy platform. When I first spoke to CEO and co-founder Dimitri Sirota in 2018, he was developing a data discovery product aimed at helping companies coping with GDPR find the most sensitive data, but since then the startup has greatly expanded the vision and the mission.

“We started shifting I think when we spoke back in September from being this kind of best of breed data discovery privacy to being a platform anchored in data intelligence through our kind of unique approach to discovery and insight,” he said.

That includes the ability for BigID and third parties to build applications on top of the platform they have built, something that might have attracted investor Salesforce Ventures. Salesforce was the first cloud company to offer the ability for third parties to build applications on its platform and sell them in a marketplace. Sirota says that so far their marketplace includes just apps built by BigID, but the plan is to expand it to third-party developers in 2021.

While he wasn’t ready to talk about specific revenue growth, he said he expects a material uplift in revenue for this year, and he believes that his investors are looking at the vast market potential here.

He has 235 employees today with plans to boost it to 300 next year. While he stopped hiring for a time in Q2 this year as the pandemic took hold, he says that he never had to resort to layoffs. As he continues hiring in 2021, he is looking at diversity at all levels from the makeup of his board to the executive level to the general staff.

He says that the ability to use the early investments to expand internationally has given them the opportunity to build a more diverse workforce. “We have staff around the world and we did very early […] so we do have diversity within our broader company. But clearly not enough when it came to the board of directors and the executives. So we realized that, and we are trying to change that,” he said.

As for this round, Sirota says like his previous rounds in this cycle he wasn’t necessarily looking for additional money, but with the pandemic economy still precarious, he took it to keep building out the BigID platform. “We actually have not purposely gone out to raise money since our seed. Every round we’ve done has been preemptive. So it’s been fairly easy,” he told me. In fact, he reports that he now has five years of runway and a much more fully developed platform. He is aiming to accelerate sales and marketing in 2021.

The company’s previous rounds included a $14 million Series A in January 2018, a $30 million B in June that year and a $50 million C in September 2019.

Oct
06
2020
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Salesforce Ventures launches $100M Impact Fund to invest in cloud startups with social mission

When Salesforce Ventures launched the first $50 million Impact Fund in 2017, it wanted to invest not only in promising cloud businesses, but startups with a socially positive mission. Today, the company launched the second Impact Fund, this time doubling its initial investment with a new $100 million fund.

The latest fund is also designed to help bring more investment into areas that the company feels need to be emphasized as a corporate citizen beyond pure business goals, including education and reskilling, climate action, diversity, equity and inclusion, and providing tech for nonprofits and foundations.

Suzanne DiBianca, chief impact officer and EVP of Corporate Relations at Salesforce, says the money is being put to work on some of the world’s most pressing social issues. “Now more than ever, we believe business can be a powerful platform for change. We must leverage technology and invest in innovative ideas to drive the long-term health and wellness of all citizens, enable equal access to education and fuel impactful climate action,” DiBianca said in a statement.

Brent Leary, founder and principal analyst at CRM Essentials, says that this investment is consistent with their commitment to social issues. “This fits right in with Salesforce’s efforts on making business a force for change. They talk it, they walk it and they invest in it,” Leary told TechCrunch.

Claudine Emeott, director of Impact Investing, said in a Q&A on the company website that as with the first fund, the company is looking for cloud companies with some ties to Salesforce that address these core social components and can have a positive impact on the world. While there is a social aspect to each company, it still follows a particular investment thesis related to cloud computing. Her goal is to have a portfolio of cloud startups by next year that are addressing the set of social needs the firm has laid out.

“I hope that [by next year] we have made numerous investments in companies that are addressing today’s concurrent crises, and I hope that we can point to their measurable impact on those crises. I hope that we can point to exciting new integrations between our portfolio companies and Salesforce to tackle these challenges together,” Emeott said.

Paul Greenberg, president of the 56 Group and author of “CRM at the Speed of Light,” says that while he doesn’t always agree with Salesforce on every matter, he admires their social bent. “As an analyst, I might battle with them on some of their products, the things they do in the market and their messaging, but as a human being, I applaud them for their deep commitment to the common good,” he said.

Salesforce has always had a social component to its corporate goals, including its 1-1-1 philanthropy model. While Salesforce isn’t always completely consistent, as with its contract with ICE, it does put money and personnel toward helping in the communities where it operates, encouraging volunteerism and charitable giving from the top down and modeled across the organization.

This investment fund, while looking at the investments through a distinctly Salesforce lens, is designed to fund startups to help solve intractable social problems, while using its extensive financial resources for the betterment of the world.

Jul
07
2020
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OwnBackup lands $50M as backup for Salesforce ecosystem thrives

OwnBackup has made a name for itself primarily as a backup and disaster recovery system for the Salesforce ecosystem, and today the company announced a $50 million investment.

Insight Partners led the round, with participation from Salesforce Ventures and Vertex Ventures. This chunk of money comes on top of a $23 million round from a year ago, and brings the total raised to more than $100 million, according to the company.

It shouldn’t come as a surprise that Salesforce Ventures chipped in when the majority of the company’s backup and recovery business involves the Salesforce ecosystem, although the company will be looking to expand beyond that with the new money.

“We’ve seen such growth over the last two and a half years around the Salesforce ecosystem, and the other ISV partners like Veeva and nCino that we’ve remained focused within the Salesforce space. But with this funding, we will expand over the next 12 months into a few new ecosystems,” company CEO Sam Gutmann told TechCrunch.

In spite of the pandemic, the company continues to grow, adding 250 new customers last quarter, bringing it to over 2,000 customers and 250 employees, according to Gutmann.

He says that raising the round, which closed at the beginning of May, had some hairy moments as the pandemic began to take hold across the world and worsen in the U.S. For a time, he began talking to new investors in case his existing ones got cold feet. As it turned out, when the quarterly numbers came in strong, the existing ones came back and the round was oversubscribed, Gutmann said.

“Q2 frankly was a record quarter for us, adding over 250 new accounts, and we’re seeing companies start to really understand how critical this is,” he said.

The company plans to continue hiring through the pandemic, although he says it might not be quite as aggressively as they once thought. Like many companies, even though they plan to hire, they are continually assessing the market. At this point, he foresees growing the workforce by about another 50 people this year, but that’s about as far as he can look ahead right now.

Gutmann says he is working with his management team to make sure he has a diverse workforce right up to the executive level, but he says it’s challenging. “I think our lower ranks are actually quite diverse, but as you get up into the leadership team, you can see on the website unfortunately we’re not there yet,” he said.

They are instructing their recruiting teams to look for diverse candidates whether by gender or ethnicity, and employees have formed a diversity and inclusion task force with internal training, particularly for managers around interviewing techniques.

He says going remote has been difficult, and he misses seeing his employees in the office. He hopes to have at least some come back before the end of the summer and slowly add more as we get into the fall, but that will depend on how things go.

Jun
17
2020
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Contentful raises $80M Series E round for its headless CMS

Headless CMS company Contentful today announced that it has raised an $80 million Series E funding round led by Sapphire Ventures, with participation from General Catalyst, Salesforce Ventures and a number of other new and existing investors. With this, the company has now raised a total of $158.3 million and a Contentful spokesperson tells me that it is approaching a $1 billion valuation.

In addition, the company also today announced that it has hired Bridget Perry as its CMO. She previously led Adobe’s marketing efforts across Europe, the Middle East and Africa.

Currently, 28% of the Fortune 500 use Contentful to manage their content across platforms. The company says it has a total of 2,200 paying customers right now and these include the likes of Spotify, ITV, the British Museum, Telus and Urban Outfitters.

Steve Sloan, the company’s CEO who joined the company late last year, attributes its success to the fact that virtually every business today is in the process of figuring out how to become digital and serve its customers across platforms — and that’s a process that has only been accelerated by the coronavirus pandemic.

“Ten or 15 years ago, when these content platforms or content management systems were created, they were a) really built for a web-only world and b) where the website was a complement to some other business,” he said. “Today, the mobile app, the mobile web experience is the front door to every business on the planet. And that’s never been any more clear than in this recent COVID crisis, where we’ve seen many, many businesses — even those that are very traditional businesses — realize that the dominant and, in some cases, only way their customers can interact with them is through that digital experience.”

But as they are looking at their options, many decide that they don’t just want to take an off-the-shelf product, Sloan argues, because it doesn’t allow them to build a differentiated offering.

Image Credits: Contentful

Perry also noted that this is something she saw at Adobe, too, as it built its digital experience business. “Leading marketing at Adobe, we used it ourselves,” she said. “And so the challenge that we heard from customers in the market was how complex it was in some cases to implement, to organize around it, to build those experiences fast and see value and impact on the business. And part of that challenge, I think, stemmed from the kind of monolithic, all-in-one type of suite that Adobe offered. Even as a marketer at Adobe, we had challenges with that kind of time to market and agility. And so what’s really interesting to me — and one of the reasons why I joined Contentful — is that Contentful approaches this in a very different way.”

Sloan noted that putting the round together was a bit of an adventure. Contentful’s existing investors approached the company around the holidays because they wanted to make a bigger investment in the company to fuel its long-term growth. But at the time, the company wasn’t ready to raise new capital yet.

“And then in January and February, we had inbound interest from people who weren’t yet investors, who came to us and said, ‘hey, we really want to invest in this company, we’ve seen the trend and we really believe in it.’ So we went back to our insiders and said, ‘hey, we’re going to think about actually moving in our timeline for raising capital,” Sloan told me. “And then, right about that time is when COVID really broke out, particularly in Western Europe in North America.”

That didn’t faze Contentful’s investors, though.

“One of the things that really stood out about our investors — and particularly our lead investor for this round Sapphire — is that when everybody else was really, really frightened, they were really clear about the opportunity, about their belief in the team and about their understanding of the progress we had already made. And they were really unflinching in terms of their support,” Sloan said.

Unsurprisingly, the company plans to use the new funding to expand its go-to-market efforts (that’s why it hired Perry, after all), but Sloan also noted that Contentful plans to invest quite a bit into R&D, as well, as it looks to help its customers solve more adjacent problems.

May
26
2020
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Scandit raises $80M as COVID-19 drives demand for contactless deliveries

Enterprise barcode scanner company Scandit has closed an $80 million Series C round, led by Silicon Valley VC firm G2VP. Atomico, GV, Kreos, NGP Capital, Salesforce Ventures and Swisscom Ventures also participated in the round — which brings its total raised to date to $123M.

The Zurich-based firm offers a platform that combines computer vision and machine learning tech with barcode scanning, text recognition (OCR), object recognition and augmented reality which is designed for any camera-equipped smart device — from smartphones to drones, wearables (e.g. AR glasses for warehouse workers) and even robots.

Use-cases include mobile apps or websites for mobile shopping; self checkout; inventory management; proof of delivery; asset tracking and maintenance — including in healthcare where its tech can be used to power the scanning of patient IDs, samples, medication and supplies.

It bills its software as “unmatched” in terms of speed and accuracy, as well as the ability to scan in bad light; at any angle; and with damaged labels. Target industries include retail, healthcare, industrial/manufacturing, travel, transport & logistics and more.

The latest funding injection follows a $30M Series B round back in 2018. Since then Scandit says it’s tripled recurring revenues, more than doubling the number of blue-chip enterprise customers, and doubling the size of its global team.

Global customers for its tech include the likes of 7-Eleven, Alaska Airlines, Carrefour, DPD, FedEx, Instacart, Johns Hopkins Hospital, La Poste, Levi Strauss & Co, Mount Sinai Hospital and Toyota — with the company touting “tens of billions of scans” per year on 100+ million active devices at this stage of its business.

It says the new funding will go on further pressing on the gas to grow in new markets, including APAC and Latin America, as well as building out its footprint and ops in North America and Europe. Also on the slate: Funding more R&D to devise new ways for enterprises to transform their core business processes using computer vision and AR.

The need for social distancing during the coronavirus pandemic has also accelerated demand for mobile computer vision on personal smart devices, according to Scandit, which says customers are looking for ways to enable more contactless interactions.

Another demand spike it’s seeing is coming from the pandemic-related boom in ‘Click & Collect’ retail and “millions” of extra home deliveries — something its tech is well positioned to cater to because its scanning apps support BYOD (bring your own device), rather than requiring proprietary hardware.

“COVID-19 has shone a spotlight on the need for rapid digital transformation in these uncertain times, and the need to blend the physical and digital plays a crucial role,” said CEO Samuel Mueller in a statement. “Our new funding makes it possible for us to help even more enterprises to quickly adapt to the new demand for ‘contactless business’, and be better positioned to succeed, whatever the new normal is.”

Also commenting on the funding in a supporting statement, Ben Kortlang, general partner at G2VP, added: “Scandit’s platform puts an enterprise-grade scanning solution in the pocket of every employee and customer without requiring legacy hardware. This bridge between the physical and digital worlds will be increasingly critical as the world accelerates its shift to online purchasing and delivery, distributed supply chains and cashierless retail.”

May
18
2020
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GO1, an enterprise learning platform, picks up $40M from Microsoft, Salesforce and more

With a large proportion of knowledge workers doing now doing their jobs from home, the need for tools to help them feel connected to their profession can be as important as tools to, more practically, keep them connected. Today, a company that helps do precisely that is announcing a growth round of funding after seeing engagement on its platform triple in the last month.

GO1.com, an online learning platform focused specifically on professional training courses (both those to enhance a worker’s skills as well as those needed for company compliance training), is today announcing that it has raised $40 million in funding, a Series C that it plans to use to continue expanding its business. The startup was founded in Brisbane, Australia and now has operations also based out of San Francisco — it was part of a Y Combinator cohort back in 2015 — and more specifically, it wants to continue growth in North America, and to continue expanding its partner network.

GO1 not disclosing its valuation but we are asking. It’s worth pointing out that not only has it seen engagement triple in the last month as companies turn to online learning to keep users connected to their professional lives even as they work among children and house pets, noisy neighbours, dirty laundry, sourdough starters, and the rest (and that’s before you count the harrowing health news we are hit with on a regular basis). But even beyond that, longer term GO1 has shown some strong signs that speak of its traction.

It counts the likes of the University of Oxford, Suzuki, Asahi and Thrifty among its 3,000+ customers, with more than 1.5 million users overall able to access over 170,000 courses and other resources provided by some 100 vetted content partners. Overall usage has grown five-fold over the last 12 months. (GO1 works both with in-house learning management systems or provides its own.)

“GO1’s growth over the last couple of months has been unprecedented and the use of online tools for training is now undergoing a structural shift,” said Andrew Barnes, CEO of GO1, in a statement. “It is gratifying to fill an important void right now as workers embrace online solutions. We are inspired about the future that we are building as we expand our platform with new mediums that reach millions of people every day with the content they need.”

The funding is coming from a very strong list of backers: it’s being co-led by Madrona Venture Group and SEEK — the online recruitment and course directory company that has backed a number of edtech startups, including FutureLearn and Coursera — with participation also from Microsoft’s venture arm M12; new backer Salesforce Ventures, the investing arm of the CRM giant; and another previous backer, Our Innovation Fund.

Microsoft is a strategic backer: GO1 integrated with Teams, so now users can access GO1 content directly via Microsoft’s enterprise-facing video and messaging platform.

“GO1 has been critical for business continuity as organizations navigate the remote realities of COVID-19,” said Nagraj Kashyap, Microsoft Corporate Vice President and Global Head of M12, in a statement. “The GO1 integration with Microsoft Teams offers a seamless learning experience at a time when 75 million people are using the application daily. We’re proud to invest in a solution helping keep employees learning and businesses growing through this time.”

Similarly, Salesforce is also coming in as a strategic, integrating this into its own online personal development products and initiatives.

“We are excited about partnering with GO1 as it looks to scale its online content hub globally. While the majority of corporate learning is done in person today, we believe the new digital imperative will see an acceleration in the shift to online learning tools. We believe GO1 fits well into the Trailhead ecosystem and our vision of creating the life-long learner journey,” said Rob Keith, Head of Australia, Salesforce Ventures, in a statement.

Working remotely has raised a whole new set of challenges for organizations, especially those whose employees typically have never before worked for days, weeks and months outside of the office.

Some of these have been challenges of a more basic IT nature: getting secure access to systems on the right kinds of machines and making sure people can communicate in the ways that they need to to get work done.

But others are more nuanced and long-term but actually just as important, such as making sure people remain in a healthy state of mind about work. Education is one way of getting them on the right track: professional development is not only useful for the person to do her or his job better, but it’s a way to motivate people, to focus their minds, and take a rest from their routines, but in a way that still remains relevant to work.

GO1 is absolutely not the only company pursuing this opportunity. Others include Udemy and Coursera, which have both come to enterprise after initially focusing more on traditional education plays. And LinkedIn Learning (which used to be known as Lynda, before LinkedIn acquired it and shifted the branding) was a trailblazer in this space.

For these, enterprise training sits in a different strategic place to GO1, which started out with compliance training and onboarding of employees before gravitating into a much wider set of topics that range from photography and design, through to Java, accounting, and even yoga and mindfulness training and everything in between.

It’s perhaps the directional approach, alongside its success, that have set GO1 apart from the competition and that has attracted the investment, which seems to have come ahead even of the current boost in usage.

“We met GO1 many months before COVID-19 was on the tip of everyone’s tongue and were impressed then with the growth of the platform and the ability of the team to expand their corporate training offering significantly in North America and Europe,” commented S. Somasegar, managing director, Madrona Venture Group, in a statement. “The global pandemic has only increased the need to both provide training and retraining – and also to do it remotely. GO1 is an important link in the chain of recovery.” As part of the funding Somasegar will join the GO1 board of directors.

Notably, GO1 is currently making all COVID-19 related learning resources available for free “to help teams continue to perform and feel supported during this time of disruption and change,” the company said.

May
07
2020
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As private investment cools, enterprise startups may try tapping corporate dollars

Founders hunting down capital in the middle of this pandemic may feel like they’re on a fool’s errand, but some investors are still offering financing, even if the terms might not be as good as they once were. One avenue that appears to remain open: corporate venture capital.

The corporate route offers its own set of unique challenges, depending on the philosophy of the organization’s investment arm. Some are looking strictly for companies that fit neatly into their platform, while others believe a solid investment is more important than a perfect fit.

Regardless of style, these firms want their investment targets to succeed on their own merits, rather than as part of the organization the funding arm represents. To get the lay of the land, we spoke to a couple of firms that take very different approaches to their investments: Dell Technologies Capital and Salesforce Ventures.

Corporate venture is a different animal

Corporate venture funds aren’t typically as large as private ones, but they have a lot to offer, such as global sales and marketing support and a depth of knowledge that offers direct benefits to a young upstart. This can help founders avoid mistakes, but there is danger in becoming too dependent on the company.

The good news is that these companies are often not leading the round, but are instead providing some cash and guidance, which leaves entrepreneurs to develop and grow on their own. While the pandemic is forcing many changes in approaches to investment, the two corporate venture capital firms we spoke to said they will continue to invest, and their theses remains pretty much the same.

If you have an enterprise focus and you can convince these firms to take a chance, they offer some interesting perks a private firm might not be able to, or at the very least provide a piece of your funding puzzle in these difficult times.

Oct
16
2019
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Autify raises $2.5M seed round for its no-code software testing platform

Autify, a platform that makes testing web application as easy as clicking a few buttons, has raised a $2.5 million seed round from Global Brain, Salesforce Ventures, Archetype Ventures and several angels. The company, which recently graduated from the Alchemist accelerator program for enterprise startups, splits its base between the U.S., where it keeps an office, and Japan, where co-founders Ryo Chikazawa (CEO) and Sam Yamashita got their start as software engineers.

The main idea here is that Autify, which was founded in 2016, allows teams to write tests by simply recording their interactions with the app with the help of a Chrome extension, then having Autify run these tests automatically on a variety of other browsers and mobile devices. Typically, these kinds of tests are very brittle and quickly start to fail whenever a developer makes changes to the design of the application.

Autify gets around this by using some machine learning smarts that give it the ability to know that a given button or form is still the same, no matter where it is on the page. Users can currently test their applications using IE, Edge, Chrome and Firefox on macOS and Windows, as well as a range of iOS and Android devices.

Scenario Editor

Chikazawa tells me that the main idea of Autify is based on his own experience as a developer. He also noted that many enterprises are struggling to hire automation engineers who can write tests for them, using Selenium and similar frameworks. With Autify, any developer (and even non-developer) can create a test without having to know the specifics of the underlying testing framework. “You don’t really need technical knowledge,” explained Chikazawa. “You can just out of the box use Autify.”

There are obviously some other startups that are also tackling this space, including SpotQA, for example. Chikazawa, however, argues that Autify is different, given its focus on enterprises. “The audience is really different. We have competitors that are targeting engineers, but because we are saying that no coding [is required], we are selling to the companies that have been struggling with hiring automating engineers,” he told me. He also stressed that Autify is able to do cross-browser testing, something that’s also not a given among its competitors.

The company introduced its closed beta version in March and is currently testing the service with about a hundred companies. It integrates with development platforms like TestRail, Jenkins and CircleCI, as well as Slack.

Screen Shot 2019 10 01 at 2.04.24 AM

Mar
27
2019
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Enterprise drone service Kespry raises new funding from Salesforce Ventures

Kespry, a company that offers industrial users a subscription-based drone service, today announced that it has raised funding from Salesforce Ventures, marking that firm’s first hardware investment. With this, Salesforce and Kespry are also partnering around bringing Kespry’s drone services for the insurance industry to Salesforce’s own tools for this vertical. Sadly, the companies did not disclose the actual funding amount, but our understanding is that it’s a substantial amount that’s comparable to other Salesforce Ventures investments.

With its focus on industrial use cases, the company, which was founded in 2013, has developed a strong foothold in the mining and aggregates space, where it offers tools for doing volumetric measurements of stockpiles based on the imagery it captures from its drones, for example. In addition, though, the company also focuses on the construction, insurance and — most recently — energy sector.

Today, Kespry has more than 300 customers, the company’s CEO George Mathew tells me. More than 200 of those are in the mining and aggregates business and more than 40 of these signed up for the company’s services in the last 12 months alone.

So while drones may not be at the top of the hype cycle right now, those companies that found their niche early on are clearly thriving. “Drones are very much a vibrant and moving landscape in terms of how much activity has gone on,” he said. “For us, we’ve been largely and continuously focused on the commercial aspects of the market that we can solve for really difficult industrial challenges. […] But I think others have had some challenges because it’s not the most straightforward thing to figure out a viable business model for scale in the drone space.”

Mathew argues that Kespry’s subscription model and the fact that it offers an end-to-end hardware and software solution is one of the reasons the company is thriving today.

The Salesforce investment came about thanks to a chance encounter with that company’s CEO, Marc Benioff, at an industry event. As Salesforce was looking to offer more vertically oriented applications for the insurance industry, there was clearly a role for Kespry in this business. “We saw a lot of need in the insurance space to get a claim processed when it comes to physical damage that may have occurred after a catastrophic event,” Mathew said. In those cases, Salesforce’s tools may be used to dispatch adjudicators already and these claims adjusters often also use Kespry’s services to fly the drones to assess roof damage, for example.

Kespry also signed on to Saleforce’s Pledge 1% program; as part of this, it contributes one percent of its employees’ time to corporate social responsibility and charitable endeavors.

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