The shift to remote work has brought about an abundance of new innovative software offerings marketed toward easing the growing pains associated with digital transformation and shifting online. But in this current climate with remote work abound, other industries that remain “hands on,” have been quietly ensuring that our society can continue to function.
ServiceTitan, a software company based in Glendale, California, has been able to capitalize on solving issues for those that do not have the luxury of working from home. Recognizing the need for technological improvements for residential and commercial contractors, the company has developed a software tool for trade professionals that allows them to safely enter homes and to conduct their business.
ServiceTitan co-founders, Vahe Kuzoyan and Ara Mahdessian (who now serves as Chief Executive Officer) had something in common: they immigrated to the United States, met, and after getting to know one another, realized both of their fathers were tradespeople. A critically underrecognized and underserved sector when it comes to digital innovation, Kuzoyan and Mahdessian recognized an opportunity to facilitate and streamline the operations for home services businesses. And that’s where the idea for ServiceTitan was born.
As a testament to growing need for ServiceTitan’s offerings, the company recently raised $500 million in a Series F round led by Tiger Global and Sequoia Capital Global Equities. ServiceTitan now sits at an $8.3 billion dollar valuation.
Aside from putting in the work and having the passion to see the venture through ServiceTitan’s conception in 2012, and launch in 2013, the company’s co-founders have also seen its annual recurring revenue increase 50% year-over-year. With a variety of investors already locked in, ServiceTitan’s most noticeable growth came in the midst of pandemic. With the new funding, ServiceTitan’s valuation grew 5 times what it was at its previous 2018 valuation.
Through their venture, Kuzoyan and Mahdessian have uncovered a wealth of potential for innovation within the trade industry, as many of their company’s customers make between $3 million and $5 million in annual revenue. ServiceTitan now aims to help these tradespeople to grow their businesses even further, as it offers solutions that help businesses to dispatch technicians, accept payment, manage payroll, and other functions.
With the additional capital, the company plans to hire additional staff and further develop their product lines, including smart route optimization and dispatching tools, parts procurement, and marketing functions.