The funding will be used to develop new API tools and expand the company’s developer community.
RapidAPI announced today that it has raised $150M in Series D funding at a $1B valuation. The round was led by new investor SoftBank Vision Fund 2, with participation from Qumra, and many of the company’s existing investors. These include Andreessen Horowitz, M12 (Microsoft’s Venture Fund), Viola Growth, Green Bay, and Grove Ventures.
RapidAPI will use the investment to continue to scale its API Hub. It will add more capabilities to help developers create and collaborate on APIs. This follows its release of API Testing tools and acquisition of API development tool Paw.
RapidAPI has also seen tremendous adoption by Global 2000 enterprises and will use the new funding to grow its customer base by expanding key enterprise capabilities including governance and management.
APIs to help solve the “developer gap”
As companies realize the importance of accelerating their digital transformation and software-centric initiatives, they increasingly turn to investment in software development. However, a shortage in software developers combined with tough hiring conditions amidst the “Great Resignation” makes scaling engineering organizations difficult. As a result, many companies are looking for tools – such as APIs – to bridge their developer shortage.
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 like “Lego pieces” – save developers critical time when adding common functions to their applications such as charging credit cards, sending messages, or getting geolocation 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.”
Tip: Also read our story about how to make sure your APIs are secure.