Zapier Grows Through Acquisitions within No-Code Workflow Automation

The global workflow automation market surpassed $20.3 billion in 2023 and is projected to grow 10% CAGR from 2024-32. This growth is attributed to the rising need for businesses to streamline operations, reduce manual errors, and enhance overall efficiency through automation solutions.

Zapier’s Offerings

Founded in 2011 by Wade Foster, Bryan Helmig, and Mike Knoop in Columbia, Missouri, Zapier was established to address the challenge of integrating disparate web applications. The founders identified a growing need for a solution that enables users to connect various apps without requiring coding skills, leading to the development of Zapier’s no-code automation platform.

Zapier’s platform supports integrations with over 3,000 web applications, including widely used tools like Gmail, Slack, Salesforce, and Trello. Users can create “Zaps,” which are automated workflows triggered by specific events in one app that initiate actions in another. This functionality allows businesses to automate tasks such as sending notifications, updating spreadsheets, or syncing data between platforms, all without writing code. The platform is widely utilized by small and mid-sized businesses, as well as teams within larger enterprises.

Zapier’s Acquisitions

Since being founded, Zapier has strategically expanded its capabilities through several acquisitions. In March 2021, it acquired Makerpad, a no-code education service and community founded by Ben Tossell. At the time of acquisition, Makerpad had more than 8,000 members and was generating approximately $400,000 in annual recurring revenue. Financial terms of the deal were not disclosed.

Last year, it acquired the team behind Vowel, an AI-powered video conferencing tool. Prior to the acquisition, Vowel had raised $14.7 million in venture funding from investors including Amity Ventures and BoxGroup. The terms of the deal were not disclosed. The acquisition has helped the launch of Zapier Central, a workspace for building and collaborating with AI bots trained on customer-specific data and workflows.

Last year, Zapier also acquired NoCodeOps, an Atlanta-based startup and community focused on supporting no-code operators. NoCodeOps had raised approximately $5.5 million from backers such as Hustle Fund and Charge Ventures. Terms of the acquisition were not disclosed. The acquisition aimed to grow Zapier’s community and deepen its engagement with professionals building internal operations using no-code tools.

Over the past few years, Zapier is consciously transforming itself to an AI-first company by integrating AI into its offerings. The recent acquisitions have added to their AI capabilities such as being able to recommend workflow improvements, providing a workspace where AI bots can collaborate with users, and building automation into natural language to suggest relevant apps, customization and even coding, if necessary.

Zapier’s Financials

Zapier generates revenue through a subscription-based model. Customers pay monthly or annual fees across tiered plans, depending on the number of tasks they automate and the number of users on their accounts. While the company does not share its financials, some believe that it has been profitable since 2014. Reports suggest that it has seen revenues grow from $140 million in 2022 to an estimated $400 million for last year.

Zapier has relied on very minimal external funding for its growth. It raised $1.4 million in seed funding over four rounds, concluding in 2014, with investors including Bessemer Venture Partners, DFJ, and Sequoia Capital. In 2021, Sequoia Capital and Steadfast Financial acquired shares from early investors in a secondary transaction, valuing the company at $5 billion.

Zapier operates in a competitive market alongside platforms such as Make (formerly Integromat), Workato, and Automate.io. There are several other big players who have their own workflow automation tools. While some of these tools focus on complex enterprise integrations, Zapier is known for its ease of use, broad integration library, and accessibility to non-technical users. Its no-code approach and strong brand among small and mid-sized businesses have helped it maintain a leading position in the workflow automation space.

Photo Credit: Gerd Altmann from Pixabay