ServiceTitan, the Los Angeles, Calif.-based parent company of industry software provider ServicePro, announced a $500 million round at an $8.3 billion valuation. The round was led by Tiger Global Management and Sequoia Capital Global Equities, with participation from H.I.G. Growth Partners. Existing investors participated, including Arena Holdings, Battery Ventures, Bessemer Venture Partners, Dragoneer Investment Group, Durable Capital Partners LP, ICONIQ Growth, Index Ventures, and T. Rowe Price Associates Inc.
According to a news release, “this milestone represents the highest valuation and the largest investment for any private vertical software company in the world. The capital raised will be used to fuel rapid growth as the company continues to invest in customer experience, product development, and hiring top talent around the globe.”
The news release also reported that ServiceTitan has surpassed $250 million in annual recurring revenue, having grown more than 50 percent over the past 12 months. The company serves more than 7,500 contracting businesses that collectively employ more than 100,000 technicians and perform more than $20 billion worth of annual transactions across various home and commercial service verticals, including pest control, plumbing, air conditioning, electrical and more.
“We depend on the men and women of the trades to maintain our life support systems: running water, heat, air conditioning, and power,” Ara Mahdessian, ServiceTitan’s co-founder and CEO, said in the news release. “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.”
Mahdessian and co-founder and President Vahe Kuzoyan launched ServiceTitan in 2012 as a solution for their fathers, who both worked in the trades. Recently ranked No. 11 on the Forbes Cloud 100 and named to the LA Business Journal’s Best Places to Work for the third straight year, ServiceTitan is on a mission to change the lives of tradespeople who have been traditionally underserved by enterprise software.