Postman raises $50 million to grow its API development platform
Postman, a five-year-old startup that is attempting to simply development, tests, and management of APIs through its platform, has raised $50 million in a new round to scale its business.
The Series B for the startup, that began its journey in India, was led by Charles River Ventures (CRV) and included participation from existing investor Nexus Venture Partners. The startup, with offices in India and San Francisco, closed its Series A financing round four years ago and has raised $57 million to date.
Postman offers a development environment which a developer or a firm could use to build, publish, document, design, monitor, test, and debug their APIs. Postman, like some other startups such as RapidAPI, also maintains a marketplace to offer APIs for quick integration with other popular services.
The startup was co-founded by Abhinav Asthana, a former intern at Yahoo. Asthana was frustrated with how APIs were an afterthought for many developers as they usually got around to building them in the eleventh hour. Additionally, developers were relying on their own workflows and there was no organized platform that could be used by many, he explained in an interview with TechCrunch.
Even big software firms have not looked into this space yet, and many have instead become a customer of Postman. “We are solving a fundamental problem for the technology landscape. Big companies tend to be slower as they have many other things on their plate,” said Asthana.
Five years later, Postman has grown significantly. More than 7 million users and 300,000 companies including Microsoft, Twitter, BestBuy, AMC Theaters, Paypal, Shopify, BigCommerce, and DocuSign today use Postman’s platform.
The modern software development relies heavily on APIs as more businesses begin to talk with one another. According to research firm Gartner, more than 65% of global infrastructure service providers’ revenue will be generated through services enabled by APIs by 2023, up from 15% in 2018.
Asthana said Postman intends to use the fresh capital to scale its startup, products, and grow its team. “We are scaling rapidly across all dimensions. There are many use cases that we still want to address over the coming months. We will also experiment with sales and invest in improving user experience,” he added.
Postman offers some of its services in limited capacity for free to users. For rest, it charges between $8 to $18 per user to its customers. That’s how the company generates revenue. Asthana declined to share the financial performance of the startup, but said its customer based was “growing phenomenally.”
Postman said CRV General Partner Devdutt Yellurkar has joined its board of directors.
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June 19, 2019 at 07:15AM