Despite the challenges faced by many startups in raising funds, Kandji, a platform for managing Apple devices, has excelled. Established in 2019, the company has rapidly raised over $188 million in funding, showcasing its exceptional growth.
Adding to their impressive funding rounds, Kandji recently secured an additional $100 million from General Catalyst, split equally between equity and a debt instrument. This funding brings their total raised capital to over $288 million, with the company’s valuation increasing from $800 million to $850 million since their last round in 2021.
Kandji has made a name for itself by offering modern and efficient solutions for IT departments to manage Apple devices within organizations. The company’s revenue and customer base have grown rapidly, with a reported 600% increase in annual recurring revenue (ARR) and a 4x growth in their customer base to 4000 global customers since 2021.
CEO and co-founder Adam Pettit attributes part of this growth to the company’s expansion beyond North America. With over 30% of revenue and customer base originating from international markets, Kandji is poised for significant global growth.
In addition to device management, Kandji has expanded into endpoint security, launching an endpoint detection and response product. This expansion, along with the incorporation of generative AI capabilities in the future, has fueled the company’s growth in ARR.
Despite competition from industry giants like Apple and legacy players such as Jamf, Kandji has maintained high win rates and customer acquisition. The company’s ability to replace existing solutions and attract new clients showcases their competitive edge in the market.
Reflecting on the company’s valuation, Pettit acknowledges the challenges of navigating the venture capital landscape in 2021. Despite modest growth in valuation, the company’s rapid expansion and impressive business performance validate their success and growth trajectory.
The decision to split the funding round’s allocation between equity and debt reflects a strategic approach to balancing dilution and financial stability. The debt funding will support Kandji’s investments in sales and marketing, with repayment tied to their sales performance.
