A Software That Made Billions – The Story of ServiceTitan Becoming a Unicorn

A Software That Made Billions – The Story of ServiceTitan Becoming a Unicorn

A plumber’s app to become the next unicorn is unheard of. However, in the world of business, anything and everything is possible. Indeed, we are talking about ServiceTitan, a service management software company catering to plumbing, electrical, and home services. People thought ServiceTitan was the least likely contender to achieve the title of a Unicorn, but they did it outstandingly.

People are always intrigued by glamorous entrepreneurs and stories of rags to riches. But is the story of ServiceTitan’s journey to becoming a Unicorn worth telling? Yes, it is, and that is why we are here.

Ara Mahdessian and Vahe Kuzoyan are the two founders of the ServiceTitan company, founded in 2007. The primary function of the then ServiceTitan software was to help their family businesses since both their fathers were contractors, and working on home services was a part of their fathers’s duties. 

However, as the two gained more customers, their side project eventually started looking like an authentic business model. The duo focused on creating an all-around platform that dealt with home services, catered to streamlining operations, invoicing, and helping manage customers. 

The founders even recall how they had seen hardships in their childhood since their fathers’ businesses weren’t doing well. Even Mahdessian fled Iran during the brutal war of Iran and Iraq in the 80s. So he had seen a lot since childhood. However, both the boys were good students, and while Ara went to Stanford, Vahe was admitted into USC, where they both pursued computer science majors. 

But at the time of taking their side project as a business, not only were they the ones showing their software prowess in the market. They were just a part of a vast global competition. Penetrating the market was the biggest challenge that the founders had to face. Besides that, technological challenges were also there since other valuable companies using their valuable investor wealth were gaining competitive advantage through the adoption of new-age technologies. So, what did the company do then?

It was in June 2012 that the magic started to happen. ServiceTitan launched its cloud-based platform, which harnessed the power of remote activity and provided neat and comprehensive solutions to its customers. It skyrockets their venture and revenue. The duo made the application industry-specific and improved its mobile accessibility, focusing on customer experience and providing ample updates and scalability to the model. 

Having seen the downside of the business, the only thing that Ara and Vahe could see was soaring up and up. The sky’s the limit. At that time, the company experienced rapid growth and colossal funding success. 

It is estimated that ServiceTitan showed a humongous growth of 700% between 2015 and 2016 and another mammoth jump of an average of 250% from 2017 to 2020. 

The company seemed flourishing because the number of employees shot up from 21 in 2015 to 500 in 2018. By 2020, the company will pay salaries to at least 1000 Titans (their employees)!

After launching the cloud-based platform, ServiceTitan secured substantial funding rounds. The company completed its Series A funding in 2015 and Series B in 2017 and received around $165 million as Series D funding in 2018, toppling $1 billion worth of valuation by 2019. Does it seem magic? No? There has been hard work, sweat, tears, moments of joy, parties, and everything in reaching a valuation of a billion dollars within such a short time.

Upon becoming a Unicorn, ServiceTitan seemed to win all kinds of accolades. Including Forbes Cloud 100, Deloitte Fast 500, LA Business Journal recognition, and many more. The strategy that the founders adopted massively paid off. The growth charts showed a tripling of the customer base by 2015. 

Since the company was making headlines and growing rapidly, another office in Armenia was opened in 2018, and with the constant flow of revenue, ServiceTitan acquired JaRay Software. Through this acquisition, the product offering and customer base both expanded.

Besides catering to the home services, ServiceTitan was highly dedicated to its customers and left no stone unturned to satisfy them. 

The founders also realized early on that there were few competitors in the home service space, although since the game was software-dependent, penetrating and marketing the product was tough. 

They saw an opportunity in the market at the right time and focused all their concentration on constructing the software that would cater to a niche market but would be highly useful for them.

ServiceTitan has always invested in growth. The founders, the management, and the employees have given their all to turning the side project into a cash cow, churning millions every month. Through appropriate funding and outstanding utilization of wealth, the company has achieved what it deserved for such a long time. 

ServiceTitan knew doing business in the competitive space was a fool’s errand. Thus, making strategic partners helped it know the industry better and cater to its customers effectively. Over the 16 years of its establishment, the company has partnered with around 61 companies, including big names like Google, Linkedin, Zapier, Apple, Yelp, and others. Among these partnerships, 37 are technology partners, while 24 are channel partners.

With the brilliant brains of the founders and the experience they have gathered over the years, ServiceTitan is destined to be a part of more success. The duo has also started an R&D center at Yerevan and is also working for the betterment of the employees and the city of Glendale, where many entrepreneurs have recently migrated.