AppFolio Continues Its Challenge For Leadership Position In The Property Software Market Via WegoWise Deal
On September 4, 2018, property management software vendor AppFolio announced it has acquired utility bill analytics software vendor WegoWise. The acquisition will provide US-headquartered AppFolio with new software capabilities to support property managers and building occupiers in processing utility bills and benchmarking energy and water usage across buildings. It will gain WegoWise’s client list of 450 customers covering 700,000 units which are primarily in the multi-family segment.
AppFolio is already one of the fastest growing property management software vendors; its revenue increased 36% organically between 2016 and 2017 to reach $148 million. This growth has been enabled by its focus on providing software solutions to small and medium-sized property managers; a buyer group that has lagged behind in adopting specialist software. It has also attracted $30 million in funding since 2007 which has supported its sales and marketing resources globally.
This latest deal takes AppFolio a further step in its challenge for a top-three market position. For the past decade, the competitive landscape for property management solutions in the multifamily segment has largely been dominated by just two large players. In 2010, Yardi’s Vice President described the market as “a dogfight in many cases because we [Yardi and RealPage] are the only two players.” Another vendor growing rapidly is MRI Software. The private-equity backed vendor has scaled to over 1,000 employees boosted by nine acquisitions since 2017.
While AppFolio still has a way to go to match the scale of RealPage or Yardi, this market activity points to an increasingly competitive marketplace amongst the large property software firms, with many vendors rapidly growing capabilities and resources. To learn more the latest innovation in mobile apps aimed at improving tenant engagement sign up for our webinar next week: Smart Building Mobile Apps: The Small Revolution In Creating A Great Smart Building Experience.