Bloomberg News

ServiceMax Raises $71 Million as IPads Infiltrate Field Service

March 04, 2014

ServiceMax Inc., a startup that provides mobile software for field-service workers, raised $71 million to bolster its sales staff and expand globally.

The financing was led by Meritech Capital Partners, with participation from investors including Kleiner Perkins Caufield & Byers, Emergence Capital Partners and Mayfield Fund, the Pleasanton, California-based company said in a statement today. The valuation wasn’t disclosed.

Investors are pouring money into Web-based business-software makers as companies move their employees to smartphones, tablets and applications in the cloud. ServiceMax added more than 100 customers last year and now has over 300 globally, according to Chief Executive Officer Dave Yarnold. They include General Electric Co. and Tyco International Ltd.

“The market is massive, pervasive and global,” Yarnold said in an interview.

While he wouldn’t comment on plans for an initial public offering, Yarnold said, “the industry can support a public entity, maybe multiple entities.”

ServiceMax, founded in 2007, has raised a total of $120 million, Yarnold said. The company, which charges about $1,000 per user a year, is going after the 5 million field workers in the U.S. and more than 20 million across the globe who have relied on notepads, Microsoft Corp. (MSFT:US)’s Excel spreadsheets and various old technologies, he said.

Varian Medical Systems Inc. (VAR:US) recently signed a deal to equip 2,200 field-service workers with ServiceMax software. The cancer-treatment company had been using Lotus Notes from International Business Machines Corp. (IBM:US), said John Moore, a senior manager at Palo Alto, California-based Varian.

Deploying IPhones

With ServiceMax, Varian will be providing Apple Inc. (AAPL:US) iPhones to field workers so they can manage appointments and track customer feedback, Moore said.

“It lets us go a lot further and get real-time visibility into customer issuers, knowledge management, scheduling and doing dispatch,” he said.

ServiceMax’s financing comes a month after Domo Inc., the business-software company started by Omniture Inc. founder Josh James, raised $125 million. Tintri Inc., which provides storage in the cloud, raised $75 million last month, and Nutanix Inc., a maker of technology for data centers, raised $101 million in January.

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net


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