Building applications are a challenge. But an even bigger problem is teaching employees or customers to use them. That is where the Digital Adoption Platforms (DAPs) specialize. They provide solutions without code or with limited coding to facilitate the digital transformation of companies. They act as middlemen to help employees or customers learn a digital application by breaking down the jargon-filled application environments. In essence, these companies help people adopt new digital environments with minimal effort.
Most of these companies started as small-sized firms trying to make their mark in the 2010-2015 period. Initially, their products were poorly understood and only a handful of clients engaged their services. But in the last seven years, the firms have gained the trust of many established brands such as Microsoft, Symantec, HCL, and Verizon. Given the potential, lately investors have pledged millions to be part of their growth story. In fact, since 2020, the funding has improved leaps and bounds. The number of employees willing to work for these firms has improved too as the funding increased gradually over the years.
The following graphs depict the revenue earned, an estimated count of employees, a sample of the clientele, total funding received, rounds of funding, growth of funds across years and total valuation in select companies.
Chart 1 shows the revenue earned by select companies in 2022. Walkme leads the pack with $178 million earned as revenue, this year, so far. Followed by Pendo with a $100 million revenue.
Chart 2 shows the number of employees working for these organizations as per the latest information available. Walkme has employed the most number followed by Pendo and Whatfix, while Applearn has the least.
Chart 3 lists the list of reputable firms served by select companies. Walkme boasts a considerably higher number of customers with many reputable names while Whatfix has an understanding with Microsoft.
Source: Company websites
Chart 4 shows the total fund received by select companies since their inception. While some established firms such as Pendo and Walkme have crossed the $300 million mark in funding, others such as Apty and Applearn are still starting and have miles to go.
Chart 5 shows the number of funding rounds completed by these DAPs since their inception. Both Pendo and Walkme have completed at least 10 rounds of funding. Insideboard and Applearn have completed two rounds of funding.
Chart 6 shows the growth story of these companies in terms of funding. Each line graph represents funding received by a DAP over the years since the start. Across all the companies, the story was similar. Understandably, they struggled to raise funds during the initial period, however, the recent years have attracted many investors. For instance, in the case of Walkme, the funding amounts took a sharp turn upwards in 2019 and the firm has not looked back since. It is worth noting that the funds have increased despite the impact of the pandemic on the world economy.
Chart 7 shows the total valuation of select companies for which the figure was available. Both Walkme and Pendo are worth more than two billion dollars while the rest are still in the up-and-coming phase.