Tray.io brings in $50M more at a $600M+ valuation for its workflow automation tools
Organizations are always looking for new ways to work more efficiently, but too often the problem is that, in a digital-first environment, they have to get in line to ask their in-house IT experts (or even more expensively, external consultants) to build those solutions for them. To underscore the demand for a better approach, today a startup that has constructed a way around that, specifically in the world of app integrations, is announcing a sizeable round of funding.
Tray.io, which has built a “general” workflow automation platform that uses a graphical interface to let anyone integrate APIs between two or more apps to create new ways of working with data across them, has raised $50 million in funding, at a valuation that a source close to the company tells me is over $600 million post-money.
The funding, a Series C, is being led by Meritech Capital, with previous investors Spark Capital, GGV Capital, and True Ventures also participating. It brings the total raised by Tray.io to just under $110 million and is notable for coming just five months after its previous round, a Series B of $37 million.
“Since we started the company we’ve been very fortunate with what’s happened in the tech world,” CEO and co-founder Rich Waldron said in an interview last week while visiting London when asked about the funding.
He said that in addition to acquisition approaches (from a number of household names) there were offers of more money coming in almost immediately after the last round closed, and the startup decided that making hay while the sun shines — that is, taking the money when it’s offered, since you don’t know what will happen tomorrow — was the right approach.
“It took us five years to build the company, and we seeded it slowly, but in the last 18 months things have exploded.” As for the sparks for that explosion, he credits the trajectories of companies like Twilio and Stripe, two other tech companies that have built large businesses on, and raised public awareness of, APIs creating new worlds of functionality; and signing on IBM as a partner: the company created a number of new integrations on the platform, some of which became standards that now other companies are using daily.
It’s been a big journey for the startup. Tray.io started out years ago with just a handful of integrations, mostly “email-centric” features, as Waldron describes them, allowing people, for example, to import data from Mailchimp into Slack to track email marketing campaigns. Now, the company provides integrations for some 400 apps, with customers ranging from small startups through to the likes of IBM, and it’s continuing to grow.
The company — which has no “free” tier, with integration packages starting at $595 per month — says that ARR is up by more than 500% this year (it does not disclose actual revenue numbers) — and its customer base is up by 37% with VMWare, Pearson, Bain & Company, Zendesk, and Udemy, SAP, Arrow Electronics, Lexmark, and New Relic among those using its services.
Typical integrations might involve apps like SAP S/4HANA, Qualtrics, Ellucian, Magento, Microsoft PowerBI and Azure, Okta, OneLogin, DropBox, Drift, Segment, Zendesk, Salesloft, Copper, Qualtrics, Intercom, and Marketo and alongside that Tray.io provides automation features, error handling, version management and more.
The company is now also providing a white-label version of its platform, Tray Embedded, which third parties can offer to their customers to manage integrations in their own environments.
Altogether the company today processes about 10 billion tasks each month.
Tray.io’s rise comes on the heels of a wider trend. When it comes to some of the prime ways that enterprises are leveraging the advances of t