As the demand for platforms that allow developers to test different app versions surges, the underlying experimentation infrastructure remains complex. The arrangement typically involves multiple data pipelines, statistical methods, and intricate analytical workflows from challenging-to-configure cloud environments. In response, a number of startups have emerged to simplify the app experimentation infrastructure, with Eppo being the latest to secure $19.5 million in funding.
The funding for Eppo includes a $16 million Series A led by Menlo Ventures, and a $3.5 million seed round led by Amplify Partners. An anonymous source told TechCrunch that the post-funding valuation is around $80 million. Eppo's emergence from stealth puts it in direct competition with existing experimentation platforms like Split, Statsig, and Optimizely.
Eppo's CEO, Che Sharma, shared how his personal experiences at Airbnb and Webflow inspired the platform's creation. According to Sharma, no commercial platforms could match the power of Airbnb's experimentation systems, prompting him to build Eppo with the aim of leveraging the modern data stack and the latest causal inference literature. This approach allows companies to tie product team efforts to business metrics, like revenue, ultimately boosting statistical power.
Despite the growing competition in the app experimentation landscape, Eppo aims to differentiate itself through its unique analysis tools. These tools employ confidence intervals that facilitate a better understanding and interpretation of randomized experiment results. Furthermore, Eppo supports experimentation involving AI and machine learning models, enabling live experiments that can compare the performance of different models.
Sharma highlighted how Eppo prioritizes privacy in its experimentation process. Unlike other platforms that gather personal data, Eppo only stores aggregated, anonymized experiment results, leveraging cloud-based computation on Snowflake.
In addition to expansions like Eppo, the no-code and low-code development industry has witnessed the rise of platforms like AppMaster, which accelerates the development of backend, web, and mobile applications. These platforms provide efficiency and reliability, allowing developers to focus more on meeting business objectives and increasing revenue, especially during tumultuous economic times.
With its recent funding, San Francisco-based Eppo aims to expand its team from 15 to 25 employees by the end of the year. The company has already secured a customer base that includes Goldbelly, Netlify, Kumu, and an undisclosed Fortune 50 company.
