As companies increasingly rely on critical digital backbones, poor code quality and technical debt can be significant drags in an increasingly competitive and globalised market. Codacy, a platform that helps software development teams ship high-quality code faster, has raised a $15M Series B funding round to capitalise on this market opportunity.
The latest round was led by Bright Pixel Capital, a technology investment firm focused on digital infrastructure software, cybersecurity, and retail technology. The round was also attended by existing investors Armilar Venture Partners, Faber Ventures, Join Capital, Caixa Capital, EQT Ventures, and Iberis Capital.
Meanwhile, the Lisbon-based tech startup has raised over $28M to date and has over 870 customers, including Panasonic, Delivery Hero, Harvey Nichols, and Delhivery.
The newly raised capital will help Codacy‘s ongoing efforts to help engineering teams reach their full potential by providing insights into the development process. The funding will be used to fuel Codacy’s product innovation and development as well as accelerate global growth, with a focus on expanding the company’s current presence in the US market.
Furthermore, the remote-first company intends to hire additional senior talent for its engineering, support, and success teams, as well as its sales and marketing team across Europe, with the goal of more than doubling its headcount to over 100 employees by the end of 2022.
Codacy, a startup founded in 2014 by Jaime Jorge and Joo Caxaria in Lisbon, Portugal, claims to have been used by hundreds of companies, including Paypal, Adobe, Qlik, Cancer Research UK, and Deliveroo. Developers use the software, which can be installed on-premise or accessed in the cloud, to check the quality of code and implement code quality standards.
Codacy’s product suite provides data-driven insights into code quality, security, compliance, engineering health, and performance. It integrates into developers’ workflows, enabling customers to ship high-quality code in over 40 programming languages.
Through automated code reviews, Codacy’s Quality product reduces time spent on quality monitoring by up to 60%. Codacy has fixed over 20,000,000 vulnerabilities in the last twelve months (that’s over 60,000 vulnerabilities per day), lowering the failure rate of new code releases and increasing the reliability of its customers’ code bases.
Pulse, Codacy’s second and most recent product, enables teams to measure the engineering performance metrics that are associated with business impact and a strong, cohesive culture. Pulse was taken out of beta testing earlier this year.
Jaime Jorge, Codacy Co-Founder and CEO, explains: “Today marks an exciting milestone for us. The new investment, and our growing customer base across the globe, validate our mission to help developers and dev teams reach their full potential. Driven by our continued focus on building a category leader in the software space, we will continue to invest in our platform, helping companies manage software quality efficiently and provide actionable insights on development processes. We’re delighted to welcome Bright Pixel Capital as a specialist investor with such deep sector expertise to further accelerate the development of our DevOps Intelligence Platform.”
Eduardo Piedade, CEO of Bright Pixel Capital said: “At Bright Pixel, we are very familiar with the challenges that companies face in an ever more digital world. Measuring and improving code quality, security and productivity are increasingly crucial tasks for companies that want to stay competitive. Codacy’s DevOps intelligence platform presents itself as the right solution for these needs by providing a suite of products that provide actionable insights to both developers and engineering leaders. We are proud to lead this round and look forward to supporting this incredible team on their mission to help developers ship better code, faster.”
Scott Anderson, Senior VP of Product & Engineering at Vevo, said: “A lot of our YouTube publishing pipeline is now covered through this [Codacy]. (…) it hit 70% code coverage across those pieces, and we’ve reduced our tech support time by about 60%. For most of these legacy systems that had outages or blips on an almost daily basis, we’ve reduced that significantly, to where we are not in rapid response or firefighting mode all the time.”