Whatfix says no bearing of WalkMe's lawsuit on business

SoftBank backed SaaS platform Whatfix has said that there will be no bearing of the lawsuit filed against its US entity by NASDAQ listed competitor WalkMe.

Whatfix says no bearing of WalkMe's lawsuit on business

Tuesday November 14, 2023,

3 min Read

Software-as-a-service (SaaS) platform Whatfix has refrained from commenting on the ongoing lawsuit against its Delaware-based entity. The company in a statement said that it will continue to pursue business-as-usual apart from attending to its legal obligations.

“Regarding the lawsuit, Whatfix refrains from commenting on pending legal proceedings. Moreover, Whatfix is steadfast in its commitment to legal obligations and will vigorously protect itself in court. We maintain unwavering confidence in our ethics, business conduct, and the integrity of our capabilities and solutions. This commitment extends to our continuous dedication to product innovations, reinforcing our position as the leading Enterprise DAP (Digital Adoption Platform),” said a statement issued by Whatfix. 

The CEO of the company, Khadim Batti, told his employees in an email that the lawsuit would not impact the company’s day-to-day operations, according to reports. 

In August, Israeli firm WalkMe had filed a Temporary Restraining Order (TRO) against Whatfix, alleging that the latter had used WalkMe’s enterprise DAP customer accounts to gain “unauthorised insight into and copy WalkMe's system features, functionality, and data”.

The complaint said that Whatfix had also violated California’s Unfair Competition law. The court had rejected the TRO on September 20. However, WalkMe has followed up with the US District Court for the Northern District of California to amend its complaint as of October 23.

The development was first reported by The Economic Times. 

“Whatfix is rapidly solidifying its leadership position in the Digital Adoption Platform (DAP) category, consistently onboarding several Fortune 500 customers every quarter. The company has maintained a robust top decile, year-on-year growth rate. Recently, Whatfix was named a Leader for the fourth consecutive year and a Star Performer for the second time in the DAP PEAK Matrix® Assessment 2023 by Everest Group, a global research firm. Additionally, the company received recognition in the Gartner Market Guide for DAPs for the second consecutive year,” added the statement from Whatfix. 

Whatfix is backed by the likes of SoftBank Vision Fund and PeakXV Partners. The company was last valued at $568 million in its last round of funding in June 2021, according to data and market research platform, Tracxn. The company counts the US as its primary revenue market. 

Meanwhile, WalkMe, founded in 2011, reported its Q3 earnings on November 14 this year, showing a 5.8% increase in revenue at $67.02 million on a year-on-year basis. The company reported a non-GAAP operating income of $1.6 million compared to a loss of $12.5 million incurred in the previous year.

Edited by Kanishk Singh