Founded in 2005, Appfire was bootstrapped until it received $ 49 million from Silversmith Capital Partners last May. Since that time, Appfire has acquired six companies in the Atlassian “ecosystem”, including Botron, BCom, Innovelog, Navarramb, Artemis and Bolo..
According to Randall Ward, co-founder and CEO of Applier, the Boston-based company has been profitable for more than a decade. While Ward declined to reveal valuations or stricter revenue numbers, he said Appfire has seen its ARR more than double in the past year.
Since last June, the company says it has experienced:
- a 103% year-on-year increase in ARR.
- 258% YOY increase in enterprise subscription revenue (data center only).
- There is a 182% YOY increase in all membership revenue (data center and cloud).
So why the need for institutional capital? With the latest funding, Appair intends to increase the limit of purchase of complementary apps.
According to Ward, Appfire is acquiring businesses every six to eight weeks, and it plans to give them momentum.
It is also able to capitalize on its options to shareholders.
Fun Fact: Atlassian was bootstrapped for almost a decade. Was profitable from its inception in 2001 before taking over the Australian Enterprise Software Company First round of external capital, Led a $ 60 million funding Excel, In July 2010. Financing was mainly secondary.
Prior to the change of products in 2013, Appair was a professional services company. The company says that it has “developed domain expertise in creating, launching and distributing apps through the Atlassian marketplace.” Today, the company has 85 products on that market and over 110,000 active installations globally on workflow automation, business intelligence, publishing and administrative tools.
In particular, the company’s Bob Swift, Feed Three and Witified brand apps aim to streamline product development through better collaboration, security, reporting and automation to companies such as Google, Amazon and Starbucks.
“We started this business 15 years ago with the goal of building software applications for customers,” Ward told TechCrunch. “At the time, there were no marketplaces, so the iTunes marketplace didn’t exist, Google Play didn’t exist, but even then we were seeing applications getting smaller in size, outdoing Mozilla plugins. My co-founder And I was sitting on the floor of a warehouse in Maynard, Massachusetts and we envisioned this company, called Appair, and the guy picked the right name. “
The pair then stumbled upon a project by which a friend of a friend was looking to integrate the two pieces with software from Atlassian.
“It was completely new to us – we had never heard of it – a software called JIRA and another piece of software called Confluence,” Ward recalls. “About three months later we started a project and then introduced Atlasian’s co-founders.”
In 2017, Appfire decided it wanted to focus full time on “becoming the largest app platform and aggregator”.
“So we decided to air all other special-party projects to serve Atlassian’s customers, and actually put all our eggs in this marketplace basket,” Ward recalls.
This was at a time when the company was looking for outside capital. With this final increase, however, Ward says Appfire was not necessarily looking for more cash.
When contacted by TA, Appfire asked if it could create more employee equity programs so that the company could be an employee-led business. It also asked if it could take 1% of its equity and pledged 1% to contribute to the initiative.
“He said yes,” Ward said. “So that led us to this latest funding.”
The tableau is also moving to Business Intelligence and Data Analytics Apps Tableau and Microsoft Power BI.
As stated above, some of its latest funding will go back to existing shareholders, Ward said. The remainder will continue to develop the business.
“We have a lot of organic and inorganic growth opportunities,” he said. “… it obviously takes some momentum.”
Michael Liebert, a head of TA Associates, said his firm had been monitoring Epfire’s progress “for quite some time”. The company’s apps, he said, do not require complex training, allowing customers to improve productivity “at a low cost”, enabling further customer adoption and “a solid land-and-expansion strategy” .
“We found the company’s high-quality business model, impressive organic growth and recently significant acquisition activity attractive,” Liebert told TechCrunch.