Business

Dropbox acquires HelloSign; an e-signature company for $200 million

Dropbox is a company which was founded in 2007 by a few MIT students. It was a startup back then and was accelerated by seed accelerator Y Combinator. It was founded by Drew Houston and Arash Ferdowski. Dropbox is a simple but innovative concept. It is a cloud or a storage box where you can store your files after installing Dropbox on your computer. Once these files are in Dropbox, you can now access these files from any of your computers by just installing Dropbox.

This concept was previously available and was brought in by Box.com but it was better executed by Dropbox. Microsoft also came in with their own Dropbox version known as OneDrive. Dropbox was first available to the public in 2008 and allowed a 2GB of free storage for its users. The storage could be increased to 50GB by paying $9.99/month or $99.99/year. The startup was doing extremely well and as a result of this Steve Jobs wanted to buy Dropbox but Drew Houston rejected the offer and wanted to stay independent.

That said, the company today is huge and has a valuation of around $10 billion. It has increased to a great extent and is busy expanding. A lot of people are aware of Dropbox and how to use it. That said, the company is now making huge strides. It recently acquired a company in the name of HelloSign. HelloSign is also in its initial stage of business, it has over 85 thousand users but the product is very promising.

HelloSign is an e-signature platform which allows users to use their signature to fill forms of different kinds. There is always a problem filling out untidy forms online and HelloSign will help you do that. It also wants to replace PDF’s by giving people its own version. The company says that PDF makes it harder for people to fill the forms as it is not compatible with all the formats. HelloSign wants to bring out a product that is compatible with everything and will help people fill out online forms with ease.

HelloSign is short of users and Dropbox has over 500 million users. The deal worth $200 million will be ceased by the end of this quarter. The deal apart from the money will be used to exchange users for technology. Dropbox is very impressed with HelloSign’s product and the latter is impressed with the user base of Dropbox. In most cases, it is always about money for the company but in this case, it is about technology and growth.

That said after acquisition HelloSign will remain an independent company and will function the same way it is functioning right now. Dropbox users, however, will now be able to fill in online forms with the help of HelloSign, which is a plus for the users. The electronic signature is offered by many companies such as Adobe Inc. and DocuSign Inc.

-Unmesh Phule

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