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ServiceTitan, a leading provider of software for the trades, has 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 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 percent over the past 12 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," added 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 No. 11 on the Forbes Cloud 100 and named to the Las Angeles 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.