Software startup ServiceTitan targets $5.16 billion valuation in US IPO

Late last month, we reported on ServiceTitan after the software startup filed paperwork for an initial public offering (IPO) in the U.S. Just two weeks later, ServiceTitan is reportedly targeting a valuation of up to $5.16 billion in its IPO. This could mark one of the final notable listings in a year that has seen a renewed appetite for public offerings.

According to a report from Reuters, the Glendale, California-based company plans to raise up to $502 million by offering 8.8 million shares priced between $52 and $57 each. The company was last valued at $9.5 billion after a Thoma Bravo-led funding round in 2021.

This move comes as the U.S. IPO market shows early signs of revival after nearly two years of subdued activity, driven by improving investor sentiment and easing fears of a recession.

By going public, ServiceTitan joins a select group of venture-backed firms—like Reddit and Rubrik—that have made their market debuts this year. The landscape for VC-backed IPOs has been quiet over the last two years due to high interest rates and volatile markets. A successful listing for ServiceTitan might inspire other startups to follow suit.

Founded in 2013 by Vahe Kuzoyan and Ara Mahdessian, ServiceTitan builds service management software for home services businesses, including HVAC, plumbing, electrical, and other trades. The company’s platform helps these businesses streamline operations by generating leads, booking appointments, and increasing sales.

While many startups chase emerging technologies like AI or IoT, ServiceTitan took a different path—focusing on the often-overlooked but critical needs of residential service businesses. Its approach has paid off, positioning the company as the industry’s leading all-in-one software provider for the home services sector.

ServiceTitan, competing with firms like Salesforce, SAP, and Jobber, was originally founded in 2007 as LinxLogic. Its platform launched in 2012, and the company rebranded as ServiceTitan in 2014.

During the 2021 fundraising surge, ServiceTitan reached a $9.5 billion valuation. By 2022, its valuation adjusted to $7.60 billion, according to PitchBook data. Over the years, the company has secured $1.46 billion in funding.

ServiceTitan had initially filed confidentially for an IPO in early 2022. The IPO is being underwritten by a syndicate of 14 firms, led by Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup. ServiceTitan will trade on the Nasdaq under the ticker symbol “TTAN.”