By Paul Vartan Sookiasian
ServiceTitan, the Armenian-founded cloud-based tradesperson software company had an explosive initial public offering on the Nasdaq Thursday, soaring 42% from the opening price of $71 a share. Founded by CEO Ara Mahdessian and President Vahe Kuzoyan, the Glendale, California-based company raised approximately $625 million in the offering, closing at more than $100 a share.
The successful offering received significant attention in the business world as a rare tech company to go public in recent years, providing encouragement to others that they can do the same. “The reception is great. The water feels wonderful,” Kuzoyan told CNBC in an interview.
The founders’ parents joined them in ringing the opening bell. Their immigrant story as tradesmen inspired the company’s founding in 2007 to address the business problems they faced. Their sons thought they were writing software to help their parents and the idea took off. Today, ServiceTitan’s software helps thousands of contractors such as plumbers, electricians, and HVAC technicians manage their back office.
At the opening in New York City, Mahdessian credited their 3000 employees “from LA to Armenia” for all their work toward reaching this milestone. According to ServiceTitan’s website, 270+ of those employees are based in their Yerevan office, which overlooks the landmark Cascade complex.
In an 2021 interview with CivilNet, the founders explained the advantages ServiceTitan has gained from operating in Armenia:
“The most important thing that I see here is there is a degree of a fire in the belly,” said Kuzoyan, “when you see the eyes of the kids at TUMO or the young adults that are dreaming big… there’s a hunger there that is meaningfully different than in California for a variety of reasons.”
Mahdessian added “that hunger is critical for making any start-up successful.” They also touted the combination found in Armenia of “a relatively deep bench of engineering talent… and a worldwide diaspora that can be instrumental in giving access to global markets.”
ServiceTitan’s opening is momentous not just for Armenia but its home city of Glendale as well. Its mayor Elen Asatryan said last month as it filed to go public “highlights not only ServiceTitan’s innovation and success but also Glendale’s growing role as a hub for tech and forward-thinking businesses. Couldn’t be prouder to see a local company making waves on a global stage.”
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