Los Angeles-based startup ServiceTitan, a provider of software for managing businesses in the contracting industry, has reportedly revived preparations for an initial public offering (IPO) in 2024. The company, valued at $9.5 billion after a Thoma Bravo-led funding round in 2021, had initially planned to go public in 2022 but deferred its IPO due to market conditions. ServiceTitan is said to be working with investment banks Goldman Sachs and Morgan Stanley on its latest IPO preparations, with a potential listing in the second quarter of 2024. The company has not yet disclosed the amount it plans to raise or the valuation it will seek, and the plans are subject to market conditions.
ServiceTitan, founded in 2012 by Ara Mahdessian and Vahe Kuzoyan, provides software used by over 11,800 businesses in the HVAC (heating, ventilation, and air-conditioning) sector. The company experienced increased demand during the COVID-19 pandemic, driven by the surge in house renovation services as more people worked from home. ServiceTitan confidentially filed for an IPO in early 2022, but the IPO market faced challenges following global events such as Russia’s invasion of Ukraine. Instead, the company turned to venture investors for fresh capital.
The decision to revive IPO plans comes amid a resurgence of IPO activity, with companies like Reddit, Rubrik, and Waystar also eyeing public offerings in the first half of 2024. ServiceTitan’s 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. The company’s decision to pursue an IPO once again underscores its confidence in market conditions and its strategic position in the contracting industry software market