ServiceTitan, a software provider for tradespeople, co-founded by fellow Armenian immigrants Vahe Kuzoyan and Ara Mahdessian, has raised $500 million in Series F funding, Forbes reports. This latest round’s $8.3 billion valuation quintuples the Glendale, California-based company’s previous valuation of $1.65 billion set in November 2018, per PanArmenian.
This software startup is a mobile, cloud-based software platform that helps home services companies streamline operations, improve customer service, and increase sales.
“Home and commercial services doesn’t rank super high on the glamour scale, but it does on the criticality scale,” says CEO Ara Mahdessian, who cofounded the business with Kuzoyan in 2012. “I think our customers are the real heroes of this story, especially during Covid-19. Think how much more important health and safety in the home has become.”
During the pandemic, ServiceTitan observed some of its customers enjoy an immediate boom in their business, while others struggled. Playing to the collaborative nature of contractors, Mahdessian says, the company was able to collect best practices and put together a playbook for safe and contactless home services, while donating 100,000 masks. The company also quietly added money to its war chest during the uncertain period, Los Angeles Business Journal unearthed in a filing last May, in a smaller Series E funding precursor to this new raise.
Overall, ServiceTitan kept growing. The company says it’s passed $250 million in annual recurring revenue, up 50% year-over-year, with 7,500 customers, triple its number when it reached billion-dollar-startup status in late 2018. The company has also made several acquisitions, most recently of ServicePro, an Ohio pest control business that brought it into that area of home maintenance and bumped its head count to more than 1,600.
ServiceTitan opened its Armenia office in 2018 with just five employees. The Armenian team of the company now exceeds 150.