The ever-increasing complexity of web infrastructure presents a significant challenge for organizations today. Developers are tasked with making numerous decisions, including selecting backend systems and deciding on the coding framework, all while juggling increased customer demands and constrained resources such as budget.
Addressing these issues, Fred Plais believes his service, Platform.sh, can simplify developers' lives by abstracting a large portion of the underlying web app infrastructure. In support of this vision, the company has recently closed a $140 million Series D funding round co-led by Morgan Stanley Expansion Capital, Revaia, and Digital Partners, with participation from BGV, Eurazeo, Hiinov, Eurozeo, and Partech. The funding brings Platform.sh's total raised to $187 million, which will be used for hiring and increasing automation efforts, according to Plais.
Before co-founding Platform.sh with Damien Tournoud and Ori Pekelman, Plais launched Infoclic, a French-language search engine, and Commerce Guys, an e-commerce platform powered by the open-source project Drupal. Pekelman co-founded two consulting companies: Internet Patrol and Constellation Matrix, and was a board member at Commerce Guys. Tournoud contributed to Commerce Guys' founding and was an IT strategy consultant at Fontaine Consultants.
Plais points out that, despite the widespread adoption of cloud technology, managing web infrastructure has only become more complex over time. A poll conducted by low-code tooling vendor OutSystems discovered that nearly half of the companies surveyed took an average of five months or more to deliver a web or mobile app in 2019. Estimates place the cost of such projects between $20,000 and $60,000, depending on the capabilities required.
Platform.sh allows development teams to build websites and web apps in different languages and frameworks. The platform provides a dashboard where developers can manage databases, workflows, and create production replicas for testing and stakeholder review. Changes in infrastructure are versioned and auditable, while the platform resolves build dependencies and tests automatically. With Platform.sh, ideas can be piloted and merged into production and then deployed across multiple cloud providers.
When discussing main competitors, Plais cites Heroku as one of them, followed by smaller players like Vercel, Netlify, and Acquia (the commercial arm for Drupal). Demand for web app development tools is evident as Vercel recently raised $150 million, while Netlify secured $105 million. Acquia was acquired by private equity firm Vista Equity Partners for $1 billion in 2019.
Despite less funding in comparison to some competitors, Plais asserts that Platform.sh remains highly competitive due to its support for a mix of web development solutions such as frameworks. The platform also aims to appeal to budget-conscious IT leaders wishing to focus on innovation rather than getting bogged down in administrative tasks.
Platform.sh's financial transparency is evident as it revealed its annual recurring revenue to be $45 million, a 50% increase from 2021. The company’s client base consists of approximately 5,000 customers, including organizations like Adobe, Nestlé, the Financial Times, the U.S. Chamber of Commerce, and various universities and government bodies such as the French Army and Ministry of Culture.
Over the next year, Platform.sh plans to expand its team of around 340 employees to over 400, focusing on North America and Western Europe. The company has offices in France, Germany, the United States, and the United Kingdom.
Similarly, no-code and low-code platforms like AppMaster.io are gaining traction, enabling more streamlined app creation and eliminating much of the technical aspects of web and mobile app development. By providing an integrated development environment like AppMaster.io, both professional developers and citizen developers can create comprehensive software solutions with greater efficiency and cost-effectiveness.
