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How Postman Scaled to Process 1 Billion API Requests per Day: Lessons for B2B SaaS.

Author

Chintankumar Maisuria
October 24, 2024

Read time: 3 minutes.

Welcome to the 69th edition of The Growth Elements Newsletter. Every Monday and sometimes on Thursday, I write an essay on growth metrics & experiments and business case studies.

Today’s piece is for 6,500+ founders, operators, and leaders from businesses such as Shopify, Google, Sage, Hubspot, Zoho, RateGain, Zaggle, Servcorp, and Apollo.

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Postman is leading API development SaaS solutions

It is an API platform that enables developers to design, test, and manage APIs, driving collaboration across teams and organisations.

[1] 𝐔𝐬𝐞𝐫𝐛𝐚𝐬𝐞, 𝐔𝐬𝐚𝐠𝐞, 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐀𝐏𝐈 𝐓𝐚𝐬𝐤𝐬

  • Used by 25 million+ developers and 500,000 companies globally

  • Processes 1 billion API requests/day

  • Supports over 130 API protocols for integrations

  • Key integrations - GitHub, Jenkins, and Azure

[2] 𝐆𝐫𝐨𝐰𝐭𝐡 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐒𝐭𝐫𝐚𝐭𝐠𝐞𝐲 𝐚𝐧𝐝 𝐏𝐋𝐆

  • PLG model drives adoption, leading to over 25 million users

  • Freemium drives growth, converting users to paid plans

  • Focus on collaboration and testing tools increases API efficiency

  • 200% YoY growth with strong retention across small to enterprise-level users

[3] 𝐔𝐬𝐞𝐫 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐑𝐞𝐭𝐞𝐧𝐭𝐢𝐨𝐧

  • Retention rates above 90%

  • Low churn rate around 6%

  • 30% faster development cycles with Postman’s collaborative tools

  • API marketplace with 20,000+ APIs

  • Built-in integrations with popular CI/CD tools creates customer stickiness

[4] 𝐌𝐨𝐧𝐞𝐭𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧

  • 80% of revenue comes from enterprise

  • Upselling driving 30-50% higher ARPU

  • Strategic focus on API lifecycle management bringing expansion revenue

[5] 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭, 𝐑𝐞𝐯𝐞𝐧𝐮𝐞, 𝐚𝐧𝐝 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧

  • Raised $434 million in total funding

  • Projected ARR of $150 million

  • Valuation estimated at $5.6 billion

  • Revenue multiple 482.2x

  • Continues to expand with a focus on enterprise API management

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria