Venture Capital: API Development Platform Postman Raises $150M at a $2B Valuation
For the first time, Postman reveals a funding valuation.
Insight Partners led a $150 million Series C funding round in API development and collaboration platform Postman. The startup, which was founded in Bengaluru in 2014, is now valued at an impressive $2 billion valuation. (Crunchbase)
Existing investors CRV and Nexus Venture Partners also participated in the fundraiser. Last year, Postman raised $50 million in a Series B round.
What’s driving the flood of cash
Postman is a collaborative platform where developers can build, test, and iterate their application programming interfaces (APIs).
Application program interfaces, or APIs, are a set of functions and procedures used for building software and apps. They allow apps to communicate with and include features from, other services. For example, an app may use Facebook or Google’s APIs to allow users to log in through those other accounts.
“We believe that APIs are the building block of modern software … this trend is just going to fundamentally explode,” Postman CEO and cofounder Abhinav Asthana said in an interview with Crunchbase News.
“Developers all over the world are rapidly transitioning from the code-first mindset to an API-first mindset with Postman being the center of this revolution.”
Currently, more than 11 million developers and 500,000 companies use Postman’s platform. These include names such as Shopify (NYSE: SHOP), Box (NYSE: BOX), Intuit (NASDAQ: INTU), and Microsoft (NASDAQ: MSFT).
“Modern-day commerce is driven by API-connected, cloud-based software, and Postman is in the absolute vanguard of companies driving faster and more effective development of solutions across a multitude of industries,” Jeff Horing, co-founder and managing director of Insight Partners, said.
The coronavirus pandemic has driven API usage to record levels. “We’ve seen a surge and, as a matter of fact, record usage of APIs on the Postman platform during the past few months as businesses shift to digital,” Asthana told VentureBeat.
Asthana sidesteps questions about a likely IPO. To TechCrunch, he said he felt the impressive valuation sent a message to the market that Postman was a solid company that would be around for a while.
Meanwhile, Asthana’s concentrating on growing Postman and developing more products.
The money from the latest round will go to investments in product design and engineering, community resources, and educational materials and webinars.
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