Masad, who’s been focused on finding ways to make programming more accessible since 2009, serves as CEO of his new company. His vision has driven Replit to become the first teaching tool ever built not just for technical users. These paid end-users pay $100 per seat, in addition to usage-based pricing. The platform is incredibly appealing to enterprise clients of all shapes and sizes. Big names such as Zillow, Duolingo, and Coinbase showcase its extensive applicability across various industries.
In a recent funding round, Replit’s stellar growth was reflected by their latest $250 million round. Prysm Capital, the new investor, nearly tripled the company’s valuation since the beginning of 2023. The company’s demonstrated confidence in itself, taking a big leap of faith after raising $100 million earlier this year. By the time of the most recent funding round, that original amount had just sat there. Armed with this massive war chest of $350 million, Replit is poised to ride its momentum to further expansion and innovation.
Even with this recent success, Replit had a rocky road in getting here. The corporate giant cut its workforce in half. Today, it’s a peak headcount of close to 60 employees, maybe 70 at the lowest. Masad reflected on this difficult period, stating, “I looked at our burn, and I looked at our progress on our revenue chart, and it just didn’t make any sense. The business wasn’t viable.”
The announcement of Replit Agent last fall was a major turning point for the company. This new agent-based coding experience builds on Replit’s mission to bring the joys of programming to a more diverse and global audience. Masad stated, “The idea of making programming more accessible to the average individual, to the knowledge worker, really, that’s where we think our market is.”
The path Replit’s steering in building non-technical users into their platform has been successful so far. As Masad noted, “Initially, we said we want to make programming more accessible, and then we sort of upped the ante a little bit. We said we’re going to create a billion programmers.” This exciting new goal is the latest example of the company’s commitment to revolutionizing how people of all ages and backgrounds interact with programming.
Replit recently crossed gross margin positivity, a key milestone in order to support the growth trajectory that they’re on. Stellar’s unique vision and fresh perspective has attracted the attention of powerful players in the venture capital arena. Even more impressive, perhaps, is that one of Replit’s new super users is Jason Lemkin, the prominent venture capitalist without any technical background.
Reflecting on his journey, Masad expressed a blend of stoicism and optimism: “I’ve learned to be a little stoic… What matters is for us to do the right thing, be principled, and move forward.” He acknowledges that challenges are part of the business landscape but maintains a positive outlook: “this too shall pass. This might mean that when you’re in a bad situation, that’ll pass, but we’re in a good situation that will pass.”
As Replit continues to carve out its niche in the programming market, it faces questions about sustainability amid rapid growth. Masad shared his thoughts on learning from experience: “one thing I need to learn is to be less frugal and start spending money.” This change of thinking might prove to be a turning point for Replit. The strategy for the company now is to use those resources to facilitate further growth.