ServiceTitan, the leading provider of customer relationship management (CRM) software designed specifically for trade businesses, just raised $500 million, valuing the company at over $8 billion.
Tiger Global Management and Sequoia Capital Global Equities led the financing round, while H.I.G. Growth Partners, Arena Holdings, Battery Ventures, Bessemer Venture Partners, Dragoneer Investment Group, Durable Capital Partners LP, ICONIQ Growth, and Index Ventures also participated.
Will greater efficiencies for construction and the trades trickle down to overall building cost savings?
More on ServiceTitan
Ara Mahdessian and Vahe Kuzoyan started ServiceTitan nearly a decade ago as a solution for their fathers, who both worked in the trades. The company offers a software suite to trade businesses that includes CRM, intelligent dispatch, custom reporting, marketing automation, a mobile solution for field techs, and accounting, payments, and financing integrations.
ServiceTitan mainly works with the plumbing, air conditioning, and electrical industries, among others. The company serves both residential and commercial contractors.
Part of ServiceTitan's mission is to empower these trade business owners to deliver a more modern customer experience. Mahdessian explained, "We depend on the men and women of the trades to maintain our life support systems: running water, heat, air conditioning, and power. Today, as both homeownership rates and time spent at home reach record highs, these essential service providers are facing rising demand from an increasingly tech-savvy homeowner. By providing contractors with the tools they need to deliver a great customer experience and grow their businesses with ease, ServiceTitan is enabling the hardworking men and women of the trades to reach the level of success they deserve."
ServiceTitan is another business that got a boost from the pandemic. The trades industry relies heavily on human interaction, and with people spending more time at home over the last year, ServiceTitan dug in to help customers power through tough times.
For example, the company worked with its customers so homeowners could have a truly contactless experience. ServiceTitan also interviewed hundreds of customers to launch a playbook on how to adapt operations to succeed through COVID-19. This included the creation of an online community for contractors to share best practices with one another.
Chase Coleman, Partner and Founder of Tiger Global Management, spoke of the need for Titan in the market as well as its dedication to customers: "ServiceTitan is powering a massive industry that has been underserved by technology for years. We admire the culture that Ara and Vahe have developed, and we are incredibly excited to partner with them as they build the operating system for residential and commercial field services businesses."
ServiceTitan announced that its revenue has grown more than 50% over the last year while the company is now generating over $250 million in annual recurring revenue. More than 7,500 contracting businesses use ServiceTitan. Those customers employ more than 100,000 technicians and perform more than $20 billion worth of annual transactions.
The Millionacres bottom line
As it's been widely reported, the pandemic has caused material prices to skyrocket. While this has obviously led to rising building costs, it has also delayed projects for investors and homeowners.
This opens up the door for tech-enablement solutions like ServiceTitan, but also for new construction techniques like 3D printing and modular construction. Look for solutions that strengthen the construction supply chain and make building processes more efficient to continue gaining adoption going forward.