Italian app developer Bending Spoons has agreed to acquire no-code platform Airtable for $1.28 billion in equity value, marking a significant markdown from the startup's former $11 billion peak valuation.
The acquisition represents a sharp reversal in fortune for Airtable, which commanded a $11 billion valuation at the height of the no-code boom in 2021. Earlier this year, the company's shares traded on secondary markets at a $4 billion valuation, signaling investor skepticism about the sector's long-term prospects.
Bending Spoons, known for acquiring and operating consumer and productivity apps, will add Airtable to its growing portfolio. The Italian company has built a strategy around acquiring struggling software assets and optimizing their operations for profitability.
Airtable's decline reflects broader challenges facing no-code and low-code platforms. Many startups in this category faced headwinds as venture capital dried up and growth projections proved overly ambitious. The sector's initial promise of democratizing software development has collided with reality: adoption rates among non-technical users have lagged expectations.
The company, founded in 2012, gained traction as a flexible database tool positioned between spreadsheets and traditional databases. Its visual interface and customizable workflows attracted both individual users and enterprise customers, but scaling profitably proved difficult.
Bending Spoons has demonstrated success in acquiring distressed software properties. The company operates a portfolio including Evernote, Splice, and Asana, among others. Its playbook typically involves cutting costs, eliminating unprofitable features, and focusing on core revenue streams.
For Airtable employees and users, the acquisition brings uncertainty. Bending Spoons' cost-conscious approach has sometimes led to staff reductions and product changes. However, the deal likely ensures the platform's continued operation, addressing concerns about the company's runway.
The acquisition finalizes during continued consolidation in the software sector. Many high-flying startups from the pandemic era have been acquired or gone public at substantial discounts to their private valuations.
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