Smartphones have become an integral part of how people live these days. However, they’re only technology; it has faults, and it has bugs. In response to that reality, Omar Gabr and Moataz Soliman founded Instabug, a software-as-a-service (SaaS) startup that aims to provide developers with in-app feedback and bug reporting to help with maintaining their website, operations, and apps.
The San Francisco-based startup recently held its Series A funding round, where they managed to raise $5M, with Accel contributing the most, with participation from other investors like MoPub Founder and CEO of MoPub. The startup also took part in the Y Combinator Winter 2016 batch.
Instabug CEO Gabr issued a statement on the funding round, said that they’ve been working with Accel since 2016 and that they’re happy to continue their mutually-beneficial partnership. They report that they’ve managed to grow revenues by 120% within the last year, proving Instabug’s profitability, which he says is why their funding went so well in spite of current events.
With the importance of smartphones in modern daily life, the difference between a bug-free app and one riddled with problems could very well be lost revenue in the millions. That’s the logic behind the creation of Instabug.
TechCrunch published a report on their website, which stated that global app revenues amounted to US$39.7bn for 2019’s first half, with the total revenue for the year amounting to a whopping $74.9bn, measured using an annual run rate metric. Based on current trends, it’s expected that more and more people will use smartphones which will, in turn, increase revenue from global app development.
Gabr reports that the COVID-19 outbreak has in people spending more time at home, which has, in turn, increased app download and usage. This, in turn, has resulted in Instabug increasing in usage.
Instabug’s operations are notable due to how the service receives reports from users. While they also take reports from the traditional methods, simply shaking a smartphone with Instabug installed on it will report to the startup. They explain it as taking advantage of the natural instinct of people shaking things that don’t work.