For many years, Microsoft and Adobe have enjoyed good relations. Adobe’s creative software has been able to reach millions of corporate customers because to Microsoft’s widely used PC operating system.
The CEOs of the companies even went to the same high school in India before relocating to the United States in the 1980s to pursue graduate studies in computer technology. They are connected by the smooth transition from desktop to cloud software.
However, a new threat to Adobe is catching on at Microsoft and prompting concerns about the sustainability of one of the closest alliances in the digital sector.
Tens of thousands of Microsoft employees use Figma, a San Francisco-based firm that marked its 10-year anniversary in August, and for many of them, it serves as the foundation of their daily work.
Although neither business will disclose the precise number of editors with paid accounts, the number of users has been rising rapidly in recent years.
The mobile app development platform Xamarin was acquired by Microsoft in 2016, and as part of the acquisition, a 350-person team was added. Months later, this crew would become Figma’s most devoted users.
Since then, the tool has played such a crucial role in how Microsoft’s designers carry out their duties that Jon Friedman, corporate vice president of design and research, has compared it to “air and water for designers.”
Venture capitalists have bet everything on the expansion.
Figma was valued at $10 billion in a capital deal that included Morgan Stanley’s Counterpoint Global in June 2021, amid the height of mega financings.
That was before the market crash of 2022 cut many cloud stocks in half or more, thus putting an end to pre-IPO rounds.
Due in large part to the fact that the market for new products has dried up this year, Figma hasn’t stated any intentions for a stock market debut, and shareholders aren’t pushing for one any time soon.
The business, which is supported by organisations like Index Ventures, Greylock Partners, and Kleiner Perkins, is now large enough and growing quickly enough to catch the attention of institutional investors.
According to persons familiar with the company’s finances who requested anonymity because the figures are private, annualised recurring revenue has increased by more than twice over the past two years and is expected to reach $400 million in 2022.
800 new people are now employed at Figma.
While Microsoft, which invests millions of dollars annually in its implementation, has acted as a growth engine for Figma, the company’s software has also flourished at Google, Oracle, and Salesforce, where it began small and grew naturally as enthusiasts bragged about it to their colleagues.
Among the additional clients are Airbnb, Dropbox, Herman Miller,Stripe and Twitter.