With another $46 million, Instabug aims to do more than just fix your app’s bugs – businesstraverse.com

Instagrama startup that aims to help mobile developers monitor, identify and fix bugs in apps, has raised $46 million in a Series B funding round led by Insight Partners.

The raise comes just over two years after the startup raised $5 million in a Series A round led by Accel, which doubled its investment in the latest funding. New lenders Forgepoint Capital and Endeavor are also circulating money. The company does not want to disclose its current valuation. The new capital brings the total equity raised to date to $54 million.

Much has changed for Instabug, which has dual headquarters in Cairo, Egypt and San Francisco, since its last raise. First, the company expanded its focus from: bug and crash reporting to build on application performance monitoring software “to capture everything around mobile performance.”

The company was founded in 2013, first released its offering in beta in 2015, and publicly launched in February 2016 during its time at Y Combinator. it’s recent The decision to expand to monitoring was driven by the fact that consumers have higher expectations for the apps they use and that companies need to be more proactive in preventing bugs from occurring, according to Instabug CEO and co-founder Omar Gabr in an interview with businesstraverse.com. For example, he said that if an app didn’t crash four years ago, that was considered good. But now, more and more, users expect apps not only not to crash, but also to be smooth and work well.

“Our goal is to ensure that the developers and the technical teams building apps have a full understanding of how that app works and performs,” he told businesstraverse.com. “We want to give them the right tools so they can be proactive. For example, they can see if there’s a problem and understand what’s going on before a user gives bad reviews or rants on Twitter.”

Instabug saw “record” growth in 2021, a year in which it saw its ARR double and its corporate client base grow 10 times, adding new clients such as DoorDash, Verizon, Qualtrics, Porsche and Gojek to existing clients such as Clubhouse, according to Gabr. . Overall, Instabug counts “many” of the Fortune 500 companies and top 100 apps in the app store as customers, he added.

Gabr further shared that in 2021, the company name software was on 2.7 billion mobile devices, processed 110 billion mobile sessions (at least 20x more than in 2020) and helped customers solve 4.2 billion problems.

Image Credits: Instagram

With so much adoption on the business side, Last year Instabug invested more in compliance and security so it could get large organizations including banks and telcos on board. Attracting more business customers has been one of the key drivers of the company’s revenue growth.

“Mobile in general has been around for 15 years, but with the pandemic it became the primary way we interact with brands and services around us,” Gabr told businesstraverse.com.Mobile used to be nice to have for big companies, but now it’s a must-have – a core product, not just a channel or marketing thing.”

When an app crashes, Instabug automatically reports the incident back to its customer. However, the company says it will go beyond crash reporting to provide mobile developers with detailed information such as where the bugs are, how an app is performing in general, and when it fails completely.

“There are so many alternatives to apps, and if users don’t like one, they’ll uninstall and use another,” Gabr said. “Companies can’t afford to respond to problems.”

Combining performance monitoring with crash reporting was the “missing piece of the puzzle,” Gabr said.

“The data we collect helps us make our product better,” he added. “Now they can get the full picture of any interaction that takes place on the phone and whether the customer has a really good or bad experience.”

Instabug has a standard SaaS business model, where companies that build mobile apps charge an annual subscription fee based on how large the app is. For example, the product is free for a company whose app has less than 10,000 monthly active users. As a business grows and more sessions run on their app, they pay more, according to Gabr. In other words, how much revenue Instabug makes is directly correlated to the number of sessions processed on its clients’ apps.

While the company was once profitable, it currently isn’t (as it has doubled and invested more in growth), according to Gabr, who says his team has been “really capital efficient.” It plans to use its new funding for increased staffing and investment in product development. It currently has 190 employees, with a technical team based mainly in Cairo.

Ganesh Bell, managing director at Insight Partners, said his company, in conducting its due diligence, concluded that Instabug “developers’ most trusted performance monitoring solution on the mobile app stack.”

“Because Instabug focuses exclusively on mobile platforms, we believe it has the best mobile-specific capabilities and comprehensive coverage for mobile platform and framework,” Bell told businesstraverse.com. “Instabug is flexible enough to deploy to a single app or to test in a development environment, but scale immediately to monitor the app portfolios of even the largest global enterprises.”