A decade ago, Ara Mahdessian and Vahe Kuzoyan started a software company to help their fathers run their contracting businesses.
Today, that company became the highest-valued private vertical software company ever.
ServiceTitan, the cloud-based software solution for home and commercial services companies, announced a $500 million investment — at a valuation of $8.3 billion — from some of the most respected investors in the world.
The Glendale, Calif.-based company powers more than 7,500 trade businesses with more than 100,000 technicians in the field that collectively generate more than $20 billion in annual revenue.
“The fact that some of the most respected investors in the world are paying attention to the trades validates the importance of the heroic work our customers do, the impact all Titans have been able to make thus far, and as importantly, the opportunity ahead of us,” said Mahdessian, co-founder and CEO of ServiceTitan.
The investment round was led by two of the most respected technology and growth investors: Tiger Global and Sequoia Global Equities. They have backed companies such as Facebook, Apple, Google, Oracle, and more.
Existing investors also participated, including Arena Holdings, Battery Ventures, Bessemer Venture Partners, Dragoneer Investment Group, Durable Capital, ICONIQ Growth, Index Ventures, and T. Rowe Price.
The fact that some of the most respected investors in the world are paying attention to the trades validates the importance of the heroic work our customers do, the impact all Titans have been able to make thus far, and ... the opportunity ahead of us.
ServiceTitan also announced Friday that it has surpassed $250 million in annual recurring revenue, having grown more than 50% over the past twelve months. A year ago, the company’s valuation was $2.3 billion.
“ServiceTitan is powering a massive industry that has been underserved by technology for years,” said Chase Coleman, Partner and Founder of 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 rapid growth through the Covid-19 pandemic emphasized the essential nature of the home and commercial services industry. The ability for technicians to work in a truly contactless way, to keep trade businesses and homeowners safe, was powered by the software.
“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 Global Equities. ”The ServiceTitan team is relentlessly focused on delivering value to their customers and solving the biggest problems facing this industry.”
In 2020, ServiceTitan responded rapidly to the pandemic, pushing out new features to assist contractors with the new realities of contactless customer interactions, remote access to software and much more. ServiceTitan interviewed hundreds of customers to launch a contractors playbook, along with an online community for contractors to share best practices with one another.
ServiceTitan plans to invest heavily in several key areas to help customers meet evolving consumer expectations with best-in-class software and services:
Generating leads: With the power of big data and artificial intelligence, contracting businesses can gain insights on their prospects — and keep customers coming back with two-way text, mobile appointment confirmations, technician ETA tracking and more.
Increasing ticket size: Technicians in the field can present their customers with good-better-best options in one seamless, consumer-friendly package — and all with the touch of a button using ServiceTitan’s new Estimate Templates.
Sharing best practices: Titan Advisor, the built-in feature recommendation engine, helps customers get the most out of the ServiceTitan platform and maximize revenue.
Supplier integrations: ServiceTitan is building out seamless integrations between companies and their vendors so they can order and pay with the click of a mouse.
ServiceTitan’s mission remains unchanged from what Mahdessian and Kuzoyan envisioned at the very start.
“We depend on the men and women of the trades to maintain our life support systems: running water, heat, air conditioning, and power,” Mahdessian said. ”By providing contractors with the tools they need to deliver a great customer experience and grow their businesses with ease, ServiceTitan is enabling the hard-working men and women of the trades to reach the level of success they deserve.”
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