Mobile testing and monitoring company Perfecto Mobile just closed a $35M funding. This round was backed by existing investors Carmel Ventures, FTV Capital, Globespan Capital Partners, and Vertex Ventures, and also new investor Technology Crossover Ventures (TCV).
This funding round is the fifth one for Perfecto since their foundation in 2015, are investors making a wise move putting their money in this company?
With $92M in Funding, Zirra estimates Perfecto’s valuation at $450M-$500M. Now Perfecto must prove its worth at least double that number, or else why not cash out now?
In other words, is Mobile application testing too small a market to cash out on?
The Mobile application testing has been dominated by Perfecto Mobile and Applause who’ve been offering end to end testing services. The market has recently experienced a series of acquisitions by Microsoft (Hockeyapp), Twitter (Crashlytics) and Apple (TestFlight). Newcomers TestFairy and Appsee have recently started experiencing growth with a new generation of mobile application testing solutions. In other words, Perfecto’s environment has gone from ‘Cozy’ to ‘Crowded’.
Perfecto Mobile is clearly growing and has responded well, with spoken plans to expand their technology to wearable devices and the Internet of Things. It is aiming for $100M in revenue and IPO within the next couple years. The Zirra Rating Algorithm predicts a future exit value of 2X return in 2-3 years. However this numbers are usually found in companies younger than Perfecto which are not in perceived need to reinvent themselves, and the new market expansion plans may produce quite a few bumps in the road to return of the investment.