Totango, a company that helps SaaS companies track customer engagement to find and correct errors and frictions in user flow, announced Wednesday that it has raised $ 100 million in Series D funding, led by Great Hill Partners .
Existing investors BGV, Pitango Ventures, and Canvas also participated in the round, giving the company $ 132 million in total financing since it was founded in 2010. The company’s last financing round was a $ 8 million Series C round in 2016. Previously, it has raised $ 15.5 million in Series B funds in 2014 and in 2011, $ 3.8 million in Series A funds.
The San Mateo, California-based company’s no-code technology enables customers to quickly and continuously design, optimize and execute the entire customer journey, including proactive detection and resolution of churn risks. It has demonstrated a return on investment for clients of over 23 points in churn reduction and 136% year-over-year expansion growth in revenue.
The past year has been “very busy” for Totango, Guy Nirpaz, Totango’s co-founder and CEO, told TechCrunch. He says the company’s mission is to democratize customer success and simplify the process so customers get value no matter the product.
During that time, the company released a free version of its customer success software, resulting in the incorporation of thousands of companies and more than 3x growth in annual recurring revenue, he added.
Meanwhile, the number of rig registrations in the last six quarters grew month-on-month, something that, according to Nirpaz, shows a “great demand from the market.” As such, the new funding will be heavily invested in product, design, and engineering to keep up with rapid adoption.
Even before the pandemic, which led many brands to focus more on customers, Nirpaz was seeing what it called “the revenue experience gap,” which is driving revenue targets on the one hand and a steady rise in expectations. of customers on the other.
“We’ve seen momentum like that before, we felt what was missing and we set out to simplify shipping on that,” he said.
Chris Gaffney, co-founder and managing director of Great Hill Partners, said his company started as Totango clients. In the pandemic, it became clear that organizing customer success was critical to moving forward, he added. As Great Hill searched for solutions for its own business, Totango’s ease of implementation stood out.
The company’s investment strategy is based on the initiative to choose a subsegment, such as customer success, and evaluate companies in that market.
“Totango jumped to the top of the list, based on ease of use,” Gaffney added. “When we evaluated the trends, we saw that there would be great growth and adoption. It is clear to us that Totango had an unusual combination of platform and product technology. From productivity to making money, they were the best at it, and that combination made them stand out. “