Software startup ServiceTitan valued at $8.97 billion as stock pops 42% in IPO debut on Nasdaq

Shares of ServiceTitan surged 42% during its U.S. market debut on Thursday, boosting the company’s valuation to $8.97 billion—over $3 billion higher than its targeted valuation of $5.16 billion just a week ago. The stock opened at $101 on Nasdaq, significantly higher than its IPO price of $71.

This strong performance reflects renewed optimism in the U.S. IPO market, driven by upbeat equity markets, potential interest rate cuts, and economic stability. ServiceTitan’s strong market debut comes just a month after the software startup filed paperwork for an initial public offering (IPO) in the U.S.

ServiceTitan’s IPO Success The company raised $625 million through the sale of 8.8 million shares, Reuters reported. After increasing its initial price range, ServiceTitan priced its IPO above expectations, highlighting strong demand. Joe Endoso, president of Linqto Capital, remarked that this pricing demonstrates growing investor interest in IPOs.

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, which is currently used by over 11,800 companies, helps these businesses streamline operations by generating leads, booking appointments, and increasing sales.

ServiceTitan Founders: Vahe Kuzoyan and Ara Mahdessian

IPO Market Trends ServiceTitan is part of a select group of venture-backed companies that went public this year, including Reddit and Rubrik. Reddit’s stock price has climbed nearly fivefold since its IPO, while Rubrik’s shares have doubled. Other major tech firms such as Klarna and Genesys are also exploring U.S. listings, signaling a resurgence in IPO activity.

The underwriting for ServiceTitan’s IPO was managed by a consortium of 14 firms, including Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup.

This latest debut reinforces investor confidence and hints at a revitalized IPO landscape for tech companies.

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.