Pendo.io raised $100 million in a series E venture round of funding to snare a $1 billion valuation. It turns out offering a cloud service that helps SaaS companies and enterprises improve their products can be quite valuable.
The company, based in Raleigh, NC, raised $206 million since its inception. Sapphire Ventures led the $100 million round and Pendo.io landed new investments from General Atlantic and Tiger Global. Existing investors such as Battery Ventures and Meritech Capital also participated.
CEO Todd Olson said Pendo's platform is designed to track customer experiences with software products and services and offer insights to improve them.
Pendo has more than 1,200 customers including Verizon, Okta, Salesforce, and Zendesk. Pendo's appeal is that it is product-focused and many enterprises launching digital transformation projects are increasingly product (software and services) led.
Olson said that the venture funding is validation that more organizations are focused on user experience. "Companies need to find ways to improve the digital experience," said Olson.
He added that the funds will accelerate investments in global expansion. Today, Pendo has about 20% of its revenue overseas. Olson said, "You'll see us double down on the London office and Europe." In May, Pendo acquired Receptive Software, a product demand intelligence platform based in the UK. The acquisition was part of an effort to tie revenue to product management.
Olson added that the timing is good for Europe expansion since the region typically lags the US in B2B software. He said demand so far has been strong in Europe.
Product and engineering will also see investment. "We are a product-driven business," said Olson.