Product analytics and digital adoption platform Pendo has received a $110 million investment from private equity firm Thoma Bravo.
The news comes less than four months after Pendo announced a $150 million tranche of funding at a $2.6 billion valuation, but this latest investment won’t see Pendo receive any more cash — it constitutes what is known as a secondary investment, meaning Thoma Bravo bought existing shares from employees and other early-stage backers.
Pendo offers a range of products designed to help companies such as Okta, Salesforce, and Zendesk help users of their own software products — this could be to onboard new customers through providing in-app guidance and support, or improve adoption among employees at a company through helpful prompts, training, and contextual overlays. On top of this, Pendo also serves up analytics to show how people are using and engaging with the products.
Thoma Bravo has a track record not only of in investing in companies, but acquiring them outright — in the past year it has doled out well over $20 billion to acquire companies such as network security company Proofpoint and real estate software and data analytics company RealPage.
It’s not clear whether this latest deal represents a minority or majority investment, but it serves to highlight the growing importance of product analytics and adoption tools at a time when every company has effectively become a software company. Getting new customers and users on board — and keeping them there — in what is an increasingly competitive landscape is vital, which is where Pendo and its ilk are thriving.
“As digital transformation has escalated across all industries, efficient and easy-to-use software is a business imperative,” Thoma Bravo partner Robert (Tre) Sayle noted in a press release. “Pendo is a clear and proven leader, addressing the growing market need for excellent software experiences.”
Other notable players in the space include WalkMe and Whatfix, the latter having closed a $90 million funding round just a few months back, while Reprise this week raised $62 million for a platform that helps companies showcase their products with interactive demos.