Legal Clash Between WalkMe and Whatfix: Customer Success Involved

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There's a big legal fight happening right now in SaaS between the Israeli giant WalkMe and Bengaluru-based startup Whatfix.

Bad news: Customer Success is involved.

The Accusations

WalkMe, listed on Nasdaq, is taking Whatfix to court, accusing them of accessing their systems without permission.

According to WalkMe, Whatfix not only interfered with customer relationships but also made misleading ads and allegedly used WalkMe's design mark without permission.

In a surprising turn, Dipit Sharma from Whatfix admitted to trying to access WalkMe's system for "further competitive analysis."

Sharma clarified that his access was limited to observing the user interface without touching internal systems or data.

Adding to the legal dispute, WalkMe claimed that Apoorva Mittal, Whatfix's Director of Customer Success, used his credentials to access various WalkMe services, allegedly gaining unauthorized insight and copying data.

Legal Proceedings

The lawsuit, filed in the United States District Court for the Northern District of California, is in motion.

WalkMe has been ordered to amend its complaint by November 22, following Whatfix's motion to dismiss.

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Whatfix's Fiscal Landscape

Interestingly, this legal drama unfolds against the backdrop of Whatfix's financial report for the fiscal year 2022-23.

Even though the startup didn't generate as much revenue as its expenses, there's a positive trend. The loss, amounting to approximately $45 Million (considering an exchange rate of 73 INR to 1 USD), showed a 53% improvement from the previous year. On a more optimistic note, the revenue from their operations increased significantly, reaching approximately $39M.

Whatfix, backed by heavyweights like SoftBank, Peak XV, Eight Roads Venture, and others, was last valued at a staggering $600 Mn.

The Industry Perspective

WalkMe says Whatfix messed with customers and got into places it shouldn't.

And it’s no surprise.

In the tech world, this kind of arguing happens a lot.

Companies strive to protect their intellectual property (IP) which is fundamental for any business.

And that’s it

Stay tuned as the legal battle unfolds.

Whatever the court decides will set the rules for fair play and tell us more about how to analyze digital strategies moving forward.

-Hakan.

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