Norwegian video conferencing company, Pexip, has seen a massive influx in customers in recent months. This company offers technology used by leading brands like Spotify, PayPal, and even the US Government. Now, Pexip is looking to raise $200 million in one of the biggest software IPOs to take place in Scandinavia.
Recently, Pexip has witnessed a seven-fold increase in usage, as the COVID-19 pandemic forces more people to work from home. At the same time, concerns about the security of solutions like Zoom have pushed brands to seek alternatives.
Pexip recently announced that it is looking to raise around $100 million in extra capital on the Oslo stock exchange, with existing shareholders also selling a similar amount of shares. Pexip has already secured the backing of four major cornerstone investors, including Wasatch Global Investors, Capital Group, and DNB Asset Management.
Embracing the Video Landscape
According to the Executive Chairman and Co-Founder of Pexip, Michel Sagen, it has long been a running joke in the communication industry that “this year” would be the year of video. However, this time around, we’ve been forced to explore the landscape for real. Everybody is being forced to use video in some form. Sagen believes that Pexip’s biggest competitor isn’t another company, it’s “non-use”.
Pexip provides a video meeting platform delivered either as a cloud-based or self-hosted service. This environment experienced a 50% increase in annual recurring revenue during the first quarter of this year. About 97% of the revenues that the company has achieved are subscription based. The Pexip software is everywhere. Irish courts are using it to conduct hearings, and the US Department of Veterans Affairs rely on Pexip too. Other organisations are using Pexip to manage customers or have patient-doctor meetings.
Some of the leading companies reliant on Pexip include the US Air Force, Vodafone, Accenture, Intel, and many others.
A Brand-New Workforce
When asked about the security issues that have plagued Zoom in recent months, Pexip’s CEO, Odd Sverre Østlie, said that customers are becoming increasingly concerned about privacy and security. Some clients want to manage security themselves, and the self-hosted version of Pexip allows for this. In some cases, they don’t even need to connect to the internet for their video meetings.
Pexip aims to complete its listing after an entirely virtual roadshow with various video meetings with an investor. The company is aiming for an increase in annual returning revenue by 2025 that will take it up to $300 million.
