On Wednesday, Postman, an Application program interface (API) development startup, raised $225 million at a valuation of $5.6 billion. Insight Partners, a New York-based existing investor, led the Series D fundraising round.
With this fundraise, Postman, becomes India’s highest valued software-as-a-service (SaaS) platform, leaving behind its competitors– Browserstack ($4 billion), Freshworks ($3.5 billion) and Icertis ($2.8 billion). In its Series C round of fundraising in June 2020, the company secured $150 million in funds.
New investors Coatue Management LLC, Battery Ventures, and BOND, as well as existing investors– CRV and Nexus Venture Partners, were there in the raising round. The latest round also observed the presence of DoorDash’s product leader Gokul Rajaram; and Freshworks’ founder Girish Mathrubootham.
“We are thrilled to have the support of our community and customers who continue to propel us forward, and 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,” said Abhinav Asthana, co-founder and chief executive officer (CEO), Postman.
“This new round of funding will help Postman dramatically increase the speed of that forward motion,” he further said.
Postman continues to experience exponential growth, as APIs increasingly become the driving force for software development and business success in this decade.
The proceeds from the fundraiser will help the company in expanding sales, and marketing, also, investing in product and engineering teams. In addition, to create a thriving API ecosystem, the firm will continue to invest in its developers globally, assist students through creative API literacy programmes, and contribute to open-source projects.
To date, the company has raised $430 million.
At present, 17 million users and 500,000 organisations are associated with Postman, responsible for creating the largest API community in the world. Companies such as Salesforce, Stripe, Kroger, Cisco, PayPal, and Microsoft are among its customers.
“Postman has firmly established itself as the preferred platform for developers,” said Insight Partners Managing Director Jeff Horing.
Since the beginning of 2020, Postman has hired over 300 employees in 13 countries. It has more than quadrupled its workforce and added thousands of new clients to a client list that now includes 98 per cent of the Fortune 500. With over 75,000 APIs published on the network, the business just claimed that its public API network is now the world’s largest API hub.
“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.”