Kandji raises an additional $100 million for Apple device management, bringing its valuation to $850 million

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In an era where many startups face challenges in securing funding and sustaining operations, Kandji, an Apple device management platform, has emerged as a notable exception. Founded in 2019, Kandji has demonstrated remarkable success in raising capital, amassing over $188 million through various funding rounds. Recently, the company secured an additional $100 million from General Catalyst, comprised of half equity and half debt instrument. This latest influx of capital brings Kandji’s total funding to over $288 million, including debt, and raises its valuation from $800 million in 2021 to $850 million.

Kandji’s primary focus is on assisting IT departments in managing the increasing number of Apple devices within organizations in an efficient and modern manner. This approach has resonated well in the market, leading to significant growth in both revenue and customer base. Since its 2021 funding round, Kandji reports a staggering 600% increase in annual recurring revenue (ARR) and a fourfold increase in its customer base, now serving 4,000 global customers.

CEO and co-founder Adam Pettit attributes part of this growth to the company’s expansion beyond the U.S. In 2021, Kandji began targeting international markets, and today, over 30% of its customer base and revenue come from outside North America. Pettit anticipates this international segment to continue growing substantially.

Another critical factor in Kandji’s rapid growth is the expansion of its platform beyond device management to include endpoint security. Following its 2021 funding round, Kandji heavily invested in endpoint security and subsequently launched its endpoint detection and response product last year. This new offering has seen explosive growth, significantly contributing to the company’s overall ARR increase. Pettit also highlighted that Kandji has been leveraging traditional machine learning within its products for several years and plans to introduce generative AI capabilities in the near future.

Despite competing with Apple itself and other established mobile device management (MDM) vendors like Jamf, Kandji consistently outperforms its competitors. Pettit proudly notes that the company’s win rates against legacy MDM solutions are very high. He revealed that two-thirds of Kandji’s global business each quarter involves replacing existing solutions, while the remaining third consists of first-time device management or information security (InfoSec) buyers.

The modest increase in Kandji’s valuation since its last funding round in 2021 is significant, given the dramatically different venture capital landscape today. Interest rates were lower in 2021, leading to inflated valuations that many companies have struggled to justify in subsequent years. Pettit views Kandji’s valuation rise as a testament to the company’s rapid growth and robust business development over the past two and a half years.

The latest funding round’s 50/50 split between equity and debt was a deliberate strategy. This structure allows for half of the funding to be non-dilutive, with the debt component specifically allocated for investment in sales and marketing. The debt funding provides Kandji with a quarterly budget to invest in these areas, which is then repaid based on the company’s sales performance.

Kandji’s impressive trajectory reflects its ability to adapt and grow in a competitive market. By continually expanding its product offerings and entering new markets, the company has positioned itself as a leader in the Apple device management and endpoint security space. With substantial funding and strategic investments, Kandji is well-equipped to continue its upward momentum and further solidify its standing in the industry.