**AI Products Expected to Drive Revenue Growth for Whatfix by 2026**
Whatfix co-founder and CEO Khadim Batti anticipates that by the end of 2026, AI products will account for at least 15% to 20% of the company’s revenue. Whatfix specializes in enhancing digital adoption of enterprise software through user-friendly nudges, such as tooltips integrated into various workflows. This approach aims to facilitate a smoother transition for users adopting new software, ultimately boosting productivity and efficiency.
As the company strives for profitability within the next two years, it has increasingly turned its focus toward AI, coinciding with its plans for an initial public offering (IPO). Batti noted that the company is currently experiencing a -27% EBITDA in 2025, but expects to improve to -5% or -6% by 2026, alongside anticipated growth.
Whatfix’s journey with AI began in 2019 with the acquisition of Airim, a startup that offers AI-driven personalization for users. This integration allows Whatfix to provide hyper-personalized in-app guidance tailored to users’ specific needs.
In September, Whatfix successfully raised $125 million in a Series E funding round led by Warburg Pincus, with participation from SoftBank Vision Fund 2, elevating the company’s valuation to $900 million. Other notable investors include Dragoneer, Peak XV Partners, Eight Roads, and Cisco Investments.
The trend of startups pivoting towards agentic AI solutions has gained momentum, as this technology is seen as highly monetizable and capable of enhancing productivity in enterprise settings. However, the challenge remains in the adoption of these systems, which stood at just 1% in 2024, according to Gartner, with projections indicating a rise to 33% by 2028. A common concern among enterprises has been the return on investment from agentic AI systems. Batti believes that Whatfix’s core product, the digital adoption platform (DAP), which generates 93% of its revenue, will be pivotal in addressing these concerns. He explained that many organizations struggle with ROI because users are not fully utilizing the capabilities of agentic AI systems, often trained on only a few use cases.
In addition to its DAP, the remaining 7% of Whatfix’s revenue comes from other product verticals, including analytics and Mirror, an application simulation software builder.
**FAQ**
**What is Whatfix’s primary focus in the AI sector?**
Whatfix aims to enhance digital adoption of enterprise software through AI-driven solutions, improving user experience and productivity.