SaaS Startup UserStudy Raises Funding From Better Capital, Angel Investors

SaaS startup UserStudy has raised $1 Mn (INR 8 Cr) in its pre-seed funding round led by Better Capital. 

Other investors who participated in this round funding included — Sparrow VC, Maninder Gulati, Good Capital and notable angels from Gojek, Microsoft, Meta, OYO, FlexiLoans and Upgrad.

UserStudy will use the fresh funds to develop its tech platform and hire talent. 

“Our view is that user research is too complex and laborious. Due to this, products and experiences are suffering at scale. Nonetheless, UserStudy fixes this by making user research 10x easier for product teams globally”, said Vaibhav Domkundwar, founder of Better Capital. 

Founded in 2022 by IIT Bombay graduates – Anshul Divakar and Nitin Matiyali, UserStudy is a full-stack research platform. It helps organisations gain insights from their video and audio channels. These insights are later consolidated and stored in one place. 

UserStudy also helps product teams (of tech organisations) in recruiting apt candidates by providing customised video and audio-based interviews and tests.  

“Our vision is to build a one-stop SaaS for all research needs of product teams globally. While product and design leaders understand the importance of user research, most teams cannot do enough because conducting research is challenging and time-consuming. With UserStudy, it becomes effortless to do research,” said Divakar. 

Both founders hold considerable experience in the business ecosystem. Divakar has previously held leadership roles at Gojek and FlexiLoans, while Matiyali was a consultant with McKinsey and also worked as head of revenue for Oyo’s UK Homes business. 

The startup said it aims to stay close to its roots (India) but also serve organisations across the globe.

In the SaaS industry, the startup faces competition from the likes of Toplyne, BarRaiser, OSlash and WebEngage. 

As per a report, the Indian SaaS market received investments up to $4.5 Bn in 2021, up by 170% from 2020. Besides, the sector is projected to grow into a $30 Bn market by 2025, accounting for 9% of the international SaaS market by 2025. 

Update | 9th Sept, 18:15 

The story headline and introduction have been edited to rectify the names of the investors who participated in this round of funding.