Postman, a leading API (application programming interface) platform said it has secured $225 million in a Series D round, placing its valuation at $5.6 billion. The round was led by existing investor, New York-based global private equity and venture capital firm Insight Partners, and joined by new investors Coatue, Battery Ventures, and BOND. Existing investors CRV and Nexus Venture Partners. In addition, DoorDash Product Leader Gokul Rajaram and Freshworks Founder Girish Mathrubootham have also joined as individual investors. The company has now raised more than $430 million across four rounds.
Last year in June, Postman secured $150 million in a Series C investment round led by Insight Partners at $2 billion valuation. The firm was valued at $350 million in 2019.
Postman now has emerged as most valued SaaS (software-as-a-service) firm started by Indian founders. It has overtaken web and mobile testing firm BrowserStack which was valued at $4 billion in June after securing $200 million from US-based BOND in a series B round.Customer engagement software firm Freshworks, which is gearing up for an initial public offering in the US, is valued at $3.5 billion. In April, Chargebee, the leading subscription billing, and revenue management platform, raised a fresh round of $125 million at $1.4 billion valuation.
Postman, which was founded in 2014 by Abhinav Asthana, Ankit Sobti and Abhijit Kane, is headquartered in San Francisco. It has a large office in Bengaluru, where the company was initially founded. It will use the Series D capital to expand its teams in the areas of sales, marketing, product, and engineering. In addition, the company will continue to invest in its community of developers across the globe. It would support students through innovative API literacy programs. The firm would also contribute toward open-source projects to foster a strong and thriving API ecosystem.
“We are thrilled to have the support of our community and customers who continue to propel us forward,” said Postman CEO and co-founder Abhinav Asthana. “This new round of funding will help Postman dramatically increase the speed of that forward motion. We’re committed to helping developers who are building the future with APIs.”
Postman continues to experience exponential growth, as APIs increasingly become the driving force for software development and business success in this decade. Today, Postman has more than 17 million users and 500,000 organisations on its platform, making it home to the largest API community in the world. The firm counts companies such as Salesforce, Stripe, Kroger, Cisco, PayPal, and Microsoft among its customers.
APIs are growing in popularity, led by developers who are adopting the “API-first” model to build new applications faster, modernise legacy architectures, and scale business processes. Organisations are also adopting the API-first model to build and ship new products faster and create products of higher quality with less code.
“APIs have quickly become the fundamental building blocks of software used by developers in every industry, in every country across the globe,” said Insight Partners managing director Jeff Horing. “ Postman has firmly established itself as the preferred platform for developers.”
Horing said Postman has the opportunity to become a key pillar of how enterprises build, deliver products, and seamlessly enable partnerships across the ecosystem. “Their continued, rapid expansion and strong management team point to a future for Postman with virtually unlimited possibilities.”
Postman has added more than 300 employees across 13 countries since the beginning of 2020. It has more than doubled its headcount, as well as adding thousands of new customers to a customer base that includes 98 per cent of the Fortune 500. The company recently announced that its Public API Network is now the largest API hub in the world, with more than 75,000 APIs shared on the network.
“Coatue was impressed by Postman’s ability to solve challenges faced by developers worldwide who need to build software faster than ever,” said Coatue General Partner David Schneider. “We also liked Postman’s work towards providing management teams, regardless of size, proper visibility into their API landscape and to ensure that increasingly lean teams can effectively maintain APIs.”