ServiceTitan Upcoming IPO: Software for the trades could start trading publicly in 2025

For many trade businesses — such as plumbers, electricians, or HVAC technicians — the emphasis is understandably on the skilled labor they're performing. However, the behind-the-scenes operational work, such as scheduling, billing, and marketing can make or break these businesses.

This is a sector that still often operates on a manual basis, as many homeowners have experienced firsthand. Yet companies like ServiceTitan are trying to change that by making the back-office work more digitized, systematized, and automated. The company provides software to both commercial and residential contractors to help run their businesses more efficiently, and it has grown into a SaaS unicorn that's attracted a lot of investor interest.

In 2022, ServiceTitan reportedly filed for an IPO confidentially, seeking an $18 billion valuation, according to Business Insider.⁵ The 2022 market downturn put those plans on hold, but Reuters reported at the end of 2023 that ServiceTitan was getting ready for an IPO, potentially in 2024, by working with Morgan Stanley and Goldman Sachs.⁶

This too has not played out yet, but Business Insider reported toward the end of August 2024 that ServiceTitan was waiting until after the U.S. presidential election and would likely not go public until 2025.⁷ That could align with Business Insider's reporting and others' projections that 2025 could be more conducive to IPOs.⁸

ServiceTitan: Company background

ServiceTitan is an end-to-end software provider for residential and commercial service industries, providing solutions in areas such as lead management, dispatch, and inventory management. The company provides a field management platform to trade businesses such as plumbers, electricians, HVAC technicians, and more.

The idea for ServiceTitan began nearly 20 years ago when founders Ara Mahdessian and Vahe Kuzoyan, both first-generation immigrants with fathers working as contractors, teamed up to create software to help their family businesses. The company was officially founded in 2007 and its cloud-based platform launched in 2012.⁹

Modernizing field management software

For many contractors, especially small family businesses, technology is limited or outdated. That helped spur co-founders Mahdessian and Kuzoyan to start the business,¹⁰ and it has since caught on from both a customer and investor perspective.

Nearly 12,000 trade customers use ServiceTitan,¹¹ primarily small businesses based in the U.S.¹²

The company crossed the thresholds of 1,000 employees and $200 million in annual recurring revenue in 2020. It reached $460 million in revenue for the 12 months ended January 2023, but it burned through $170 million in 2022, according to The Information.¹³ Its revenue reportedly grew to $577 million in 2023, according to Sacra.¹⁴

Meanwhile, ServiceTitan has earned honors like ranking sixth on the Forbes 2024 Cloud 100, a list of the hottest private cloud companies. It was also the only trade industry software provider to make this list.¹⁵

ServiceTitan has also expanded its offering over the years, such as by recently acquiring Convex, a sales and marketing platform for commercial services.¹⁶

And as a whole, the global field service management market is projected to grow at a CAGR of 19.2% from 2022 to 2031, reaching $29.9 billion by 2031, according to Allied Market Research.¹⁷

The industry could also benefit from more interest in trade work among young Americans. The number of students enrolled in vocational-focused community colleges increased by 16% last year, reaching the highest amount since this data has been tracked going back to 2018, according to The Manufacturing Institute.¹⁸

ServiceTitan stock price history

ServiceTitan's Forge Price is $84.57 as of November 2024, which is in line with its latest primary funding rounds — a Series H in 2022 and Series H-1 in 2024.¹⁹ However, this price represents a steep drop from ServiceTitan's highest Forge Price of $149.70 in mid-2022. It's also approximately a 29% decrease from its Series G in 2021, when the issue price was $118.96.²⁰ Forge Price is a derived data point that reflects the up-to-date price performance of venture-backed, late-stage companies, and is calculated based on a proprietary model incorporating pricing inputs from primary funding round information, secondary market transactions, and indications of interest (IOIs) on Forge.

Although ServiceTitan's stock price remains below its all-time high, it has recovered significantly recently. About a year ago, ServiceTitan's Forge Price was $55.35, but it jumped up to $82.35 in late November 2023. It then climbed a bit higher in April 2024 to reach its current price of $84.57²¹. Altogether, ServiceTitan's Forge Price has surged around 53% over the past year. In comparison, the Forge Private Market Index — a broad measurement that reflects the up-to-date performance and pricing activity of venture-backed, late-stage companies that are actively traded in the private market — is down -0.3% over the past year.²²

ServiceTitan funding history and private market valuation

ServiceTitan raised around $18 million at approximately a $100 million post-money valuation with its Series A round led by Bessemer Venture Partners in 2015.²³ Another big round was its Series D in 2018, when it raised $165 million from investors at a $1.65 billion post-money valuation. This round was led by Index Ventures, with Dragoneer Investment Group and T. Rowe Price also participating, alongside existing investors Battery Ventures, Bessemer Venture Partners and ICONIQ Capital.²⁴

Its valuation climbed significantly again with its Series F in 2021, when it raised $500 million at a post-money valuation of $8.3 billion, led by major investors Tiger Global Management and Sequoia Capital Global Equities.²⁵

Its peak valuation from primary funding rounds came with its Series G a few months later in 2021, reaching a post-money valuation of $9.49 billion, with investment from Thoma Bravo.²⁶

Most recently, ServiceTitan's Series H in 2022 valued the company at $7.35 billion, which included investment from TPG, and its Series H-1 in April 2024 from undisclosed investors slightly raised its valuation to $7.55 billion.²⁷

Looking ahead

In all, ServiceTitan has raised well over $1 billion,²⁸ but its recent valuations from primary funding rounds are far below its reported goal of gaining an $18 billion valuation when it confidentially filed for an IPO in 2022.²⁹ A new valuation goal has not yet been disclosed, but with the company’s recent S-1 filing and plans to list on NASDAQ under the ticker symbol TTAN, more details may soon emerge.

So, while it's possible ServiceTitan could end up having its IPO in 2025 after the presidential election and winter holiday season passes, it remains to be seen what markets will look like at that time and what the details of the ServiceTitan IPO will be.

Check back here or take a look at Forge’s upcoming IPO calendar to stay in the loop about a possible ServiceTitan IPO and other pending public offerings.

If you’re interested in investing in private companies like ServiceTitan before they go public, read more about pre-IPO investing or register on Forge Markets today to get started.