Its technology increases sales conversions and decreases labor costs by providing step-by-step guidance and calls-to-action at the point of interactions on websites
When WalkMe co-founder Eyal Cohen’s mother asked him to show her how to do stuff online all the time, he decided to be a good Jewish son and step up to the plate: by creating an online assistance platform.
Four years later the successful Israeli company, co-founded together with Dan Adika and Rafi Sweary, announced that it raised $25 million in Series D funding on Wednesday to launch a New York office, expand its current teams in San Francisco, Tel Aviv, and Melbourne, and increase customer acquisition. Its technology increases sales conversions and decreases staff time spent on employee trainings and customer service, among other tasks, by providing step-by-step guidance and calls-to-action at the point of interactions on websites.
Its impressive track record, including five-fold annual revenue growth and inboarding clients such as eBay, grabbed the attention of new investor Greenspring Associates, which led this funding round. Existing investors Scale Venture Partners, Giza Venture Capital, and Gemini Israel Ventures also participated in this round of funding, which brings the company’s total funding to date to $42.5 million.
Ashton Newhall of Greenspring Associates said in a statement, “We’ve been paying close attention to WalkMe’s evolution over the past few years and are very impressed with the company’s leadership, execution, growth and innovation. We spoke with many of WalkMe’s customers who told us about unprecedented reductions in onboarding time and in incoming requests for support. We look forward to the partnership as they continue to disrupt the user experience landscape.”
Talking with CEO Dan Adika
In an interview with Geektime, Adika highlighted the double digit growth WalkMe customers experience after using the service. For one software company client that used WalkMe to increase their sales conversions, “The increase they saw was incredible. They were in a good place before, had 6.08% conversion. This is pretty good, considering the industry average is just 2 percent. This is people that visited their site and then bought stuff. Once they implemented WalkMe, their sales conversions jumped to 13.3%!”
He then mentioned a service support staff whose number of calls were reduced between 20 and 40 percent depending on the nature of the inquiry. This is big money considering, “A customer costs $4.00/minute in assistant care mode, where there’s an agent on the other side,” according to Adika. With these kinds of double digit numbers, “This is what turns it in our customers’ eyes, that it’s major, strategic.” He added that this is what explains their high growth in revenue.
When asked where they plan to expand to next, he mentioned Latin American markets such as South America and Spain. They have also started to do some marketing in German and French.
Ultimately, since they are a utility service, their ability to expand to new markets is much easier than for other kinds of startups, which puts them at a clear advantage for scaling. As Adika stated, “The need for simplicity in websites is something experienced by all people.”
Aiming for IPO
It appears that the company aims to go all the way to an IPO. When asked what their ultimate plans were, Adika responded negatively to an exit, instead saying, “We’re creating a new industry, so there is no natural buyer for WalkMe. The way we look at the world, there’s something slow in user experience. We think the solutions are not ideal when you come to online.”
While there are dozens of live chat oriented startups, WalkMe’s technology was created earlier and more effectively than most of its competition.
When asked how Adika’s mother reacted to the recent funding round, he said she was very proud. “She was also one of the first ones to know. I’m very close to my Mom. A lot of the time, I tell her a lot of news. Sometimes she doesn’t understand how big it is. When we got SAP as a customer, for example, she didn’t know who they are. But when we got eBay, she got very excited.”