This year saw few major ecommerce companies go public, with one notable exception. On Dec. 11, ServiceTitan, a B2B marketplace operator, raised $625 million in its initial public offering (IPO).
ServiceTitan provides cloud-based software for contractors. It offers tools for dispatching, scheduling, call booking, reporting, marketing, customer service, and sales management. The company plans to release its first quarterly earnings report on Jan. 9.
It serves the HVAC, plumbing, electrical, garage, water treatment, and pest control industries. In its most recent fiscal year, which ended July 2024, its annual revenue reached $685 million. That’s 25% year-over-year growth. Meanwhile, it had a net loss of $195 million in 2024. That compares to $270 million in 2023.
About the ServiceTitan IPO
The ServiceTitan IPO sold 8.8 million shares at $71 each. It’s notable for two key reasons.
- Market Interest: It reflects Wall Street’s continued support for scalable eCommerce companies despite fewer public listings in the sector.
- B2B Market Trends: It highlights the growing role of B2B marketplaces in modernizing business operations.
ServiceTitan revenue sources include subscription fees, transaction-based income from payment processing, and professional services. It has a customer base of 11,800 businesses.
ServiceTitan was founded by Ara Mahdessian and Vahe Kuzoyan, who met on a ski trip in 2004. Their shared experience as children of contractors led to the creation of the platform. Major investors include Tiger Global and Sequoia.
With its public debut, ServiceTitan aims to continue expanding its role in digitizing contractor-focused industries.
In November, ServiceTitan partnered with SRS Distribution Inc., a roofing materials supplier, to improve procurement processes for contractors. The integration will allow contractors to access detailed product catalogs with pricing and availability updates directly through the ServiceTitan platform.
- Phase 1: Launching Winter 2024, it will feature catalogs with descriptions, images, and pricing updates.
- Phase 2: Starting Spring 2025, it will enable real-time pricing, electronic ordering, and delivery tracking.
Rajeev Rai, executive vice president and chief digital officer at SRS, described the partnership as a step toward “seamless digital solutions that enhance contractor workflows.”
Home Depot acquired SRS Distribution in March for about $18.25 billion. Home Depot ranks No. 4 in the Top 1000, Digital Commerce 360’s database of the largest online retailers in North America. It’s also the top-ranking retailer in the Top 1000’s Hardware & Home Improvement category.
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