Servify, a Mumbai-headquartered startup that operates a device lifecycle management platform and works deeply with brands, including Apple and Samsung, in a number of geographies, has raised $23 million in a new financing round.
The Series C financing round for the five-year-old startup was led by existing investor Iron Pillar; other existing investors, including Blume Ventures, Beenext and Tetrao SPF, participated in the round. The new round pushes Servify’s to-date raise to $48 million.
Servify works with enterprises such as Apple, Samsung, OnePlus, Xiaomi, Nokia, Motorola and Airtel and handles for its partners after-sales services such as device protection, exchange and trade-in programs, explained Sreevathsa Prabhakar, founder and chief executive of the startup, in an interview with TechCrunch.
The startup, which offers its services through a whitelabel arrangement with enterprises, works with more than 50 brands and reaches over 50 markets. With Apple, it works in three geographies, and in over half a dozen with OnePlus .
The new round, which was oversubscribed, will help the startup expand its expertise in many new product categories and deepen its reach in international markets, said Prabhakar, who has more than a decade of experience in overseeing after-sales and other device management businesses.
“We are keenly interested in unique businesses addressing hard problems in very large and global markets and are excited to continue to back the company in its next phase of growth. Stellar execution by Servify’s team combined with its differentiated technology platform have led to the company’s impressive growth this year despite Covid-19 related challenges,” said Anand Prasanna, managing partner at Iron Pillar, in a statement.
The coronavirus outbreak has deeply impacted the business of Servify, which was profitable in the financial year that ended in March. In April and May, when many countries enforced lockdowns, the startup’s business reached a complete halt. But in the months since, it has not only fully recovered but has grown to new heights, said Prabhakar. At no time did the company lay off any employee or reduce salaries, he said.
“It is very satisfying as we have more than quadrupled our revenue in 2020 to date, and raised funds for expansion even during the tough economic climate. This further strengthens our belief that we have built a globally scalable, sound business that is not only trusted by large brands, but also the investor community,” he said.
TechCrunch asked Prabhakar if he would ever consider engaging with customers directly. He said the current model of Servify enables it to acquire customers at no charge and he thinks it’s the right model to maintain moving forward.
Prabhakar said he is hopeful that more venture firms will look into this new category, which traditionally does not receive much attention because it did not fit into existing spaces such as SaaS. He said Servify has proven that this category is crucial and thriving.