The API startup space is booming. Companies are seeking easy ways to expand their digital offerings without designing solutions from scratch. APIs are a great option. However, finding the right one is typically difficult.
That’s why RapidAPI set out to change the game. The startup has more than 20,000 unique APIs tracked, integrated, and used in its marketplace which is available to millions of developers. Following a $25 million funding round led by Microsoft last year, RapidAPI has just received another cash infusion. On Thursday, it announced that it has raised an additional $25 million.
RapidAPI takes a unique approach to help developers connect with the right API. It also helps with integration by providing them with a single API key and SDK. An interesting feature of the service is that it includes both free and paid APIs. While developers are still able to use free software without a charge, RapidAPI makes money with a subscription-based model.
Companies can sign up via the RapidAPI for Teams product—which is currently being used by more than 18,000 teams and over a million developers.
Originally founded in 2015 in Israel, the startup is now headquartered in San Francisco. It has experienced impressive growth in 2020, adding 300,000 new developers since January. That figure is a six-fold increase compared to the same five months of 2019. Moreover, RapidAPI has doubled its number of APIs over the past year and adds 1,000 more each month. Companies contributing to its marketplace include the likes of Microsoft, Twilio, SendGrid, Nexmo, Skyscanner, and Crunchbase.
RapidAPI’s newest funding comes as the second closing of its Series B round, which originally ended last year. The additional $25 million brings the startup’s total funding to $62.5 million. Its overall valuation rests upwards of $105 million but is likely much higher considering that it has scaled significantly over the past year. The round includes participating from existing investors Andreessen Horowitz, DNS Capital, Green Bay Ventures, M12 (Microsoft’s venture capital fund), and Grove.
APIs in Demand
It’s clear that APIs are becoming more popular in the tech world. However, learning to use them isn’t easy.
RapidAPI’s co-founder Iddo Gino says, “You can’t build everything from scratch, and using APIs makes work a lot more efficient but each API has a different format and authentication strategy. You have to speak a lot of different languages to use them all.”
A simple way to use APIs is becoming even more in-demand.
In light of COVID-19, things haven’t changed much for RapidAPI. Since it was founded in one country and moved to another, its workforce of 75 employees is used to remote work. As such, it has thrived in recent months.
Moreover, RapidAPI is exactly the type of company poised to do well amid the digital transformation currently gripping the world. As more organizations and businesses shift their operations online, RapidAPI gives them easy access to the tools they need for success.
Thanks to its new funding, the startup will be able to continue innovating in the space. With no real competitors, RapidAPI is looking like a strong candidate to be the frontrunner of the API world.