By Anirban Sen and Milana Vinn
NEW YORK (Reuters) – ServiceTitan Inc, a Los Angeles-based startup that makes software to help contract workers manage their businesses, has revived preparations for an initial public offering (IPO) in 2024, according to people familiar with the matter.
ServiceTitan, which had been preparing to go public in 2022 before the market for IPOs soured, is working with investment banks Goldman Sachs and Morgan Stanley on its latest preparations for a stock market listing that could come as early as the second quarter of 2024, the sources said, requesting anonymity as the discussions are confidential.
Valued at $9.5 billion after a Thoma Bravo-led funding round in 2021, ServiceTitan has yet to decide on how much it plans to raise from the share sale and what valuation it will seek, the sources said, cautioning that the company’s plans are subject to market conditions and could change.
ServiceTitan, Goldman Sachs and Morgan Stanley declined to comment.
ServiceTitan’s stock market launch would add to a growing list of companies, including social media firm Reddit, cloud security company Rubrik, and healthcare payments firm Waystar, aiming for flotations in the first half of 2024, according to people familiar with the matter.
A brief revival of the market earlier this year with the offerings of Arm Holdings, Instacart, Birkenstock Holding and Klaviyo ended after some of these companies’ shares performed poorly.
Founded in 2012 by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan has emerged as a major player in a niche market, making software used by more than 11,800 businesses that are run by technicians serving the HVAC (heating, ventilation and air-conditioning) sector.
Its investors include Battery Ventures, Bessemer Venture Partners, Coatue, CPP Investments, Dragoneer Investment Group, Durable Capital Partners LP, Generation Investment Management, ICONIQ Growth, Index Ventures, Sequoia Capital, TPG, and T. Rowe Price.
ServiceTitan’s business was buoyed by the COVID-19 pandemic, which spurred demand for house renovation services among people working from home. This led the company to confidentially file for an IPO in early 2022.
However, after the IPO market closed following Russia’s invasion of Ukraine, ServiceTitan had to instead turn to venture investors for fresh capital.
In May, the company hired former private equity firm TPG executive Dave Sherry as its new chief financial officer.
(Reporting by Anirban Sen and Milana Vinn in New York; Editing by Sonali Paul)
