Codacy raises $15M in Series B
Codacy, a platform that helps software development teams to ship high-quality code faster, has raised a $15m Series B funding round, marking another milestone in its journey to become the leading provider for DevOps Intelligence. Bright Pixel Capital, a leading technology investment group focused on digital infrastructure software, cybersecurity, and retail technology, led the round. Existing investors Armilar Venture Partners, Faber Ventures, Join Capital, Caixa Capital, EQT Ventures and Iberis Capital also participated in the round.
In a world where most companies want to digitalise and where there is an ever-growing shortage of developers to meet those demands, there is an increasing need for tools that improve the efficiency of engineering teams. This need is the key driving force behind the fast-growing global DevOps market, which is expected to reach $52 billion by 2030.
As companies increasingly have critical digital backbones, lack of code quality and technical debt can act as severe drags for companies in an increasingly competitive and globalised market. Capitalising on this market opportunity, Codacy is rapidly becoming the number one choice for software-led organisations who want to standardise software and guide teams to full engineering performance.
More than 300,000 developers and 870 customers worldwide already use Codacy’s platform. These customers include international corporations such as Panasonic, Delivery Hero, Harvey Nichols and Delhivery. The platform directly addresses the growing need of organisations to rapidly deliver high-quality software, ultimately increasing the efficiency and competitiveness of organisations.
Codacy’s product suite provides actionable data-driven insights, including vital information on code quality, security, compliance, engineering health and performance. It seamlessly integrates into the developers’ workflows, allowing customers to ship high-quality code in over 40 programming languages.
Codacy’s Quality product decreases time spent on quality monitoring by up to 60% through automated code reviews. Over the last twelve months, Codacy fixed more than 20,000,000 vulnerabilities (that is, over 60,000 vulnerabilities per day), significantly reducing the failure rate of new code releases and increasing the reliability of its customers’ code bases.
Codacy’s second and newest product, Pulse, enables teams to measure the engineering performance metrics that correlate with higher business impact and a strong, cohesive culture. Pulse was released out of beta earlier this year.
Jaime Jorge, Codacy Co-Founder and CEO, explains: "Today marks an exciting milestone for us. The new investment, and our growing customer base across the globe, validate our mission to help developers and dev teams reach their full potential. Driven by our continued focus on building a category leader in the software space, we will continue to invest in our platform, helping companies manage software quality efficiently and provide actionable insights on development processes. We’re delighted to welcome Bright Pixel Capital as a specialist investor with such deep sector expertise to further accelerate the development of our DevOps Intelligence Platform.”
Eduardo Piedade, CEO of Bright Pixel Capital said: "At Bright Pixel, we are very familiar with the challenges that companies face in an ever more digital world. Measuring and improving code quality, security and productivity are increasingly crucial tasks for companies that want to stay competitive. Codacy’s DevOps intelligence platform presents itself as the right solution for these needs by providing a suite of products that provide actionable insights to both developers and engineering leaders. We are proud to lead this round and look forward to supporting this incredible team on their mission to help developers ship better code, faster.”
Scott Anderson, Senior VP of Product & Engineering at Vevo, said: "A lot of our YouTube publishing pipeline is now covered through this [Codacy]. (…) it hit 70% code coverage across those pieces, and we’ve reduced our tech support time by about 60%. For most of these legacy systems that had outages or blips on an almost daily basis, we’ve reduced that significantly, to where we are not in rapid response or firefighting mode all the time.”
The Series B financing comes at a time of significant growth for the company. In the past year, the company strengthened its global footprint, growing the customer base in the US, resulting in an acceleration in year-on-year growth, on the back of strong unit of economics including net dollar retention. It was also recognised for its excellence in R&D by the Portuguese National Innovation Agency.
This recent raise will support Codacy’s continued focus on enabling engineering teams to reach their full potential by providing insights into the development process. The financing will continue to fuel Codacy’s product innovation and development and accelerate global growth, with a focus on expanding its existing presence in the US market.
Additionally, the remote-first company plans to hire additional senior talent for its engineering, support, and success teams, as well as its sales and marketing team across Europe, planning to double its headcount to over 100 employees by the end of 2022.