- In a climate where many startups struggle to secure funding, Kandji, an Apple device management platform founded in 2019, stands out.
- Kandji’s success in securing significant funding and achieving robust growth underscores its position as a formidable player in the Apple device management market.
OUR TAKE
Kandji, the Apple device management platform founded in 2019, is truly a dark horse in the funding world. In an environment where startups are generally struggling for funding, they effortlessly secured an additional $100 million, with the funds split evenly between equity and debt. Kandji’s growth over the past few years has been astounding, with annual recurring revenue (ARR) soaring sixfold and their customer base skyrocketing to 4,000 global clients. Despite competition from giants like Apple and Jamf, Kandji continues to thrive, with two-thirds of their business each quarter involving replacing existing solutions, while the remaining third comprises new customers entering the device management space for the first time. This momentum is undeniably impressive.
–Miurio huang, BTW reporter
What happened
In a climate where many startups struggle to secure funding, Kandji, an Apple device management platform founded in 2019, stands out. The company recently raised an additional $100 million in funding from General Catalyst, with a 50/50 split between equity and debt. This latest round boosts Kandji’s total funding to over $288 million and elevates its valuation from $800 million in 2021 to $850 million.
Kandji has made significant strides since its last funding round, notably increasing its annual recurring revenue (ARR) by 600% and quadrupling its customer base to 4,000 global clients. The company has also expanded its reach beyond the United States, with over 30% of its customers and revenue now coming from outside North America. This international growth has been a key factor in Kandji’s recent success.
The company has also diversified its offerings, moving from pure device management to include endpoint security. Last year, Kandji launched its endpoint detection and response product, contributing to its substantial ARR growth. CEO and co-founder Adam Pettit notes that the company plans to integrate generative AI capabilities into its products in the coming months, further enhancing its technological edge.
Despite competition from Apple and other mobile device management (MDM) vendors like Jamf, Kandji has maintained high win rates against legacy solutions. Pettit highlights that two-thirds of Kandji’s business each quarter involves replacing existing solutions, while the remaining third consists of new customers entering the device management space for the first time.
Also read: Apple’s SRU: Ensuring timely device security updates
Also read: Enhancing security: Understanding Security Response Updates (SRU)
Why it’s important
Kandji’s success in securing significant funding and achieving robust growth underscores its position as a formidable player in the Apple device management market. In an era where many startups face funding challenges, Kandji’s ability to attract substantial investment highlights investor confidence in its business model and growth potential.
The company’s strategic shift towards endpoint security and its planned integration of generative AI capabilities demonstrate its commitment to innovation and staying ahead of industry trends. This diversification not only enhances Kandji’s product offerings but also positions it to better meet the evolving needs of its customers.
Kandji’s international expansion is another critical factor contributing to its growth. By extending its reach beyond North America, the company taps into new markets and revenue streams, bolstering its global presence. This move is particularly significant as it reflects Kandji’s ability to adapt and thrive in different regions, further solidifying its market position.
Moreover, Kandji’s competitive edge against both legacy MDM solutions and newer players like Apple indicates its strong value proposition. The fact that a significant portion of its business involves replacing existing solutions underscores the effectiveness of Kandji’s products and its appeal to customers seeking more modern and efficient device management options.
The deliberate structure of the recent funding round, with a 50/50 split between equity and debt, also highlights Kandji’s strategic financial planning. This approach allows the company to invest in sales and marketing without diluting existing equity excessively, ensuring sustainable growth and operational flexibility.
Kandji’s latest funding round and continued growth trajectory reflect its resilience and innovative approach in a competitive market. The company’s ability to secure significant investment, expand internationally, and diversify its product offerings positions it for continued success. As Kandji continues to evolve and integrate advanced technologies like generative AI, it is poised to remain a key player in the Apple device management landscape, delivering value to its growing customer base and maintaining its competitive edge.
