Appsmith has successfully raised $51.5 million over two funding rounds, establishing itself as a significant player in the open-source low-code application platform market. The platform is designed to help developers build custom applications quickly and securely, offering features like data source connectivity, drag-and-drop UI building, and JS customization.
Keep reading to explore the intricacies of Appsmith's fundraising journey and the investors backing this innovative platform.
What Is Appsmith?
Appsmith, founded by Nikhil Nandagopal, Abhishek Nayak, and Arpit Mohan, is an open-source low-code application platform. The company, established in 2019, operates fully remotely with locations in San Francisco and Bengaluru.
Appsmith's mission is to help developers build custom applications quickly and securely. The platform offers features like drag-and-drop UI building, data source connectivity, and JS customization.
With a team of 51-200 employees, Appsmith is one of the fastest-growing open-source projects, used by teams in over 150 countries.
How Much Funding Has Appsmith Raised?
- Series B Round
- Amount Raised: $41 million
- Date: June 2022
- Lead Investors: Insight Partners
- Motivation Behind the Round: The funding is intended to give Appsmith time to focus on its open-source community and eventually build a commercial product.
- Series A Round
- Amount Raised: $8 million
- Date: October 2021
- Lead Investors: Canaan
- Motivation Behind the Round: Rising usage of its service and a desire to build out its platform to support more use cases, including mobile applications.
- Seed Round
- Amount Raised: $2.5 million
- Motivation Behind the Round: Not specified.
Appsmith has raised a total of $51.5 million in funding. The current valuation is not explicitly mentioned.
Key Investors
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm. They focus on growth-stage software and internet businesses.
- Investment Focus Areas: Software, internet, data services.
- Notable Investments: Twitter, Shopify, DocuSign.
- Accel
- Details: Accel is a global venture capital firm that invests in early and growth-stage technology companies. They have a strong track record of backing successful startups.
- Investment Focus Areas: Early and growth-stage technology companies.
- Notable Investments: Facebook, Slack, Dropbox.
- Canaan Partners
- Details: Canaan Partners is a venture capital firm that invests in early-stage technology and healthcare companies. They have a diverse portfolio across various sectors.
- Investment Focus Areas: Technology, healthcare.
- Notable Investments: LendingClub, Match.com, Ebates.
- OSS Capital
- Details: OSS Capital is a venture capital firm specializing in open-source software companies. They support the growth and development of open-source projects.
- Investment Focus Areas: Open-source software companies.
- Notable Investments: GitLab, Mattermost, Netdata.
- Bessemer Venture Partners
- Details: Bessemer Venture Partners is a venture capital firm that invests in early-stage and growth-stage companies. They have a broad investment strategy across multiple sectors.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: LinkedIn, Shopify, Pinterest.
What's Next for Appsmith?
Appsmith stands at the cusp of significant growth, driven by the rising demand for low-code development platforms. With a user base that has grown 15x in the last year and over 7,000 active companies, the opportunity to expand its open-source community is immense. The company plans to leverage its $41 million Series B funding to develop a commercial product, which could open new revenue streams and attract further investment.
Future fundraising opportunities are likely as Appsmith transitions to a commercial model. The company’s focus on enterprise-specific features and geographic expansion could make it an attractive target for venture capitalists. However, challenges such as competition from other low-code platforms and the need to balance open-source community needs with enterprise demands may arise. Maintaining a diverse and distributed workforce will also be crucial as Appsmith scales its operations.
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