RapidAPI, provider of an API Hub that enables millions of developers and enterprises to find, connect to, and manage thousands of APIs, announced it has raised $150 million in Series D funding, enabling the company to continue to scale its API Hub, adding more capabilities to help developers create and collaborate on APIs—following its release of API Testing tools and acquisition of API development tool, Paw. This recent round puts the company at a $1 billion valuation.
The round was led by new investor SoftBank Vision Fund 2, with participation from Citi Ventures,Qumra, and many of the company's existing investors, which includes Andreessen Horowitz, M12 (Microsoft’s Venture Fund), Viola Growth, Green Bay, and Grove Ventures
RapidAPI has also seen tremendous adoption by Global 2000 enterprises and will also use the new funding to grow its customer base by expanding key enterprise capabilities including governance and management, according to the company.
“Demand for digital solutions and software innovation is increasing rapidly, and without enough developers, the world needs APIs to continue building software,” said Nagraj Kashyap, managing partner at SoftBank Investment Advisers. "We believe that RapidAPI plays a critical role in supporting the API economy and has demonstrated impressive growth and execution to accelerate developer adoption and supply of APIs. We are excited to partner with Iddo and the team to support their mission to drive modern software development."
The developer gap has fueled the rapid expansion of the API economy—which is currently growing at over 63% CAGR. APIs—which provide encapsulated pieces of functionality that developers can embed in their apps function like “lego pieces”—save developers critical time when adding common functions to their applications such as charging credit cards, sending messages, or getting geo-location information.
“The pandemic and the rapid change it has precipitated over the last two years has compelled almost every company to become a digital player very quickly. It’s not nice to have, it’s basic survival,” said Iddo Gino, CEO and founder of RapidAPI. “This has created a huge demand and subsequent shortage of developers, hindering an organization’s ability to fully invest in digital transformation initiatives. As a result, companies are turning to APIs and tools like RapidAPI to realize the productivity and innovation benefits of digitizing their organization.”
Self-service developers leverage RapidAPI to consume paid APIs, as well as set up private workspaces using RapidAPI for Teams when they can collaborate on internal APIs and microservices. Over 25,000 new developers subscribed to paid plans on RapidAPI in 2021 alone.
Enterprise clients create a private internal API hub with RapidAPI, where all their developers can publish and consume APIs. This easier access to APIs helps companies break down silos, accelerate digital transformation and reduce time to market of new initiatives.
For more information about this news, visit www.rapidapi.com.