RapidAPI, a provider of an API Hub, has raised $150 million in Series D funding. SoftBank Vision Fund 2 led the round.
March 23, 2022—SAN FRANCISCO—RapidAPI, provider of the world’s largest API Hub that enables millions of developers and enterprises to find, connect to, and manage thousands of APIs, 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 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 will use the investment 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. 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.
“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.”
APIs – Solving 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 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.
RapidAPI’s The State of Enterprise APIs Survey found that nearly all respondents (98%) believe that APIs are an essential part of their organization’s digital transformation, and 97% agree that successfully executing an API strategy is essential to secure organizations’ future revenue and growth. Its State of APIs Developer Survey found that a majority (68.5%) of developers indicated that they will rely on APIs more in 2022 for all their coding projects.