Insight Partners led a $46 million Series B funding round for Instabug, a startup that aims to help mobile developers monitor, identify and fix bugs within apps.
Two years ago, the startup raised $5 million in a seed round and doubled down on its investment in the latest financing. The new backers put money in the round. The company did not reveal its current valuation. The equity has been raised to $54 million.
Since its last raise, a lot has changed for the company, which has dual headquarters in Cairo, Egypt and San Francisco. The company expanded its focus from bug and crash reporting to building out application performance monitoring software to capture everything around mobile performance.
The company was founded in 2013 and publicly launched in February 2016 after a year at Y Combinator. The decision to expand into monitoring was made due to the fact that consumers have higher expectations from the apps they are using and companies need to be more proactive to prevent bugs from occurring in the first place. Four years ago, if an app wasn't crashing, it was considered good. Users expect apps to run well and not crash.
The goal is to make sure that the developers and the engineering teams who are building apps have full visibility about how that app operates and is performing. They can see if an issue is happening, and understand what is going on before a user is giving bad reviews.
In the year that ended in March of this year, it saw its ARR double and number of enterprise customers grow by 10 times. Of the fortune 500 companies and top 100 apps on the app store, he added.
Gabr shared that the company's software sat within 2.7 billion mobile devices, processed over 100 billion mobile sessions, and helped customers resolve 4.2 billion issues.
The image is titled "Instabug."
With so much adoption on the enterprise side, the company invested in compliance and security last year to be able to onboard large organizations.
The primary way we interface with brands and services around us is through mobile, and it has been around for 15 years.
When an app crashes, Instabug automatically reports it to its customer. The company says it goes beyond crash reporting to give mobile developers detailed information such as where the bugs are, how an app is performing generally and when it is completely failing.
If users don't like an app, they'll uninstall it and use another one.
Gabr said that the missing piece of the puzzle was combining performance monitoring with crash reporting.
The data we gather helps us make our product better.
The business model of Instabug is to charge companies that are building mobile apps an annual subscription fee based on how big the app is. The product is free for a company with less than 10,000 monthly active users. Gabr says that as a business grows and more sessions are conducted on their app, they pay more. The number of sessions that are processed on its customers is a good indicator of how much revenue it makes.
Gabr says that the company was profitable at one time, but is currently unprofitable as it has been doubling down and investing more on growth. It has 190 employees, with most of them based in Cairo.
Insight Partners concluded that the most trusted solution for performance monitoring on the mobile app stack was Instabug.
Bell believes that the best mobile-specific capabilities and comprehensive mobile platform and framework coverage are available with the use of Instabug.
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