A popularly-known US_based automation company, Zapier, has recently acquired a UK-based no-code startup, Makerpad, on the 8th of March, 2021. The financial details of the acquisition remain confidential as agreed upon by both parties. This deal is Zapier’s first official acquisition since the launch of its operations about a decade ago. Being a no-code company itself, Zapier has carried out this purchase in the hopes of gaining more users for its services and increasing the aggregate number of no-code platforms as time goes by.
When asked about the deal structure, Makerpad’s founder, Ben Tossell, made it known that his company would work independently of its new parent company (although following set guidelines). The implication is that the deal is not designed to be a complete “takeover” of the smaller startup, as their operations have not been altered by the new parent company.
Zapier is a cloud computing no-code platform that helps anyone automate the most tedious parts of a day-to-day job. The company believes in dividing labor between humans and computer systems based on the work at hand. Zapier seeks to empower organizations everywhere to create systems and processes that allow both computers and humans to do what they do best. Their success in the no-code automation industry has earned them recognition and support from various high-profile investors such as Sequoia Capital, Bessemer Venture Partners, and Y Combinator, to mention a few. According to co-founder and CEO of Zapier, Wade Foster, Zapier has just crossed the US$ 100 million annual recurring revenue mark, having about 400 employees presently.
Makerpad, on the other hand, is a promising early-stage startup that teaches its users how to automate work and design projects without any prior coding knowledge. The company achieves this through expert-led lessons and boot camp sessions. According to Tossell, “Markerpad has a goal to educate people everywhere on the possibilities of creating without having to write any code.”
Both organizations seem content with the structure of their collaboration as they have both witnessed massive growth recently. Foster revealed how SMBs have become reliant on their services, having seen increasing SMB adoption after the global pandemic. With the digital transformation of the world today, “no-code” will most likely not decline anytime soon.
When asked why this is the perfect time to sell, Tossell stated that this collaboration would help his company in expanding the no-code era farther than it could alone, also expressing that this deal was the more preferred choice as opposed to alternatives like venture capital funds.
The tech space is starting to witness a worldwide transformation where low-code and no-code capabilities are beginning to gain traction and recognition. This innovation came up as a result of the technicality and difficulty involved in coding practices. Upon its introduction to the world, low-code and no-code systems have garnered support and adoption from various people and organizations, showing a glimpse of a future where coding practices might become obsolete.
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