WSO2, the brainchild of Sri Lankan entrepreneur Sanjiva Weerawarana, has become a beacon of innovation within the software industry. Founded in 2005, the enterprise software firm has made a significant mark, recently securing its future through acquisition by Swedish investment powerhouse EQT for over $600 million.
What sets WSO2 apart is its inclusive approach to employee equity, with Weerawarana emphasizing the importance of shareholder involvement from the start. His vision has turned many of his employees—most of whom remain based in Sri Lanka—into stakeholders, creating both financial incentives and ownership pride. Roughly 30% of the proceeds from the acquisition will go to those employees, showcasing the success of Weerawarana’s ‘every employee is important’ ethos.
Under the {WSO2} umbrella, the company has developed critical technologies such as open-source API management systems and identity and access management (IAM) tools. Their offerings have gained traction among major global enterprises including AT&T and Samsung, and serve as competitive alternatives to established players like Google’s Apigee and Okta. Their work is fundamental to building and integrating digital services, particularly as businesses navigate the increasingly complex demands of digital transformation.
Sanjiva Weerawarana’s career path is just as compelling as WSO2's success. Before founding WSO2, he was immersed in the tech world at IBM, where he contributed to significant projects related to web service specifications. Frustrated by IBM’s lack of interest in his middleware ideas, Weerawarana was determined to establish his own legacy, resulting in the creation of WSO2 just weeks after returning to Sri Lanka. He faced countless challenges, from economic instability and civil conflict to skepticism from investors who questioned his decision to build the startup back home. Through it all, WSO2 not only survived but thrived during periods of turmoil.
Weerawarana recounts the early days, reflecting on how enduring Sri Lanka's adverse conditions molded the company’s resilience. "When I came back to Sri Lanka, the country was still facing many challenges, but I believed we could build something great here," he said. About 80% of WSO2's current workforce remains based there, highlighting the company's commitment to nurturing local talent.
Much of WSO2’s funding came from strategic investments, with Intel Capital being among its earliest backers. The initial funding laid the groundwork for WSO2’s growth, allowing it to invest significantly in its product offerings. By leveraging open-source principles, Weerawarana built partnerships and community involvement around the development of superior software solutions without the constraints often faced by proprietary models.
The acquisition by EQT, facilitated through its subsidiary EQT Private Capital Asia, reinforces WSO2’s future potential. EQT is recognizing the upward trend of cloud computing and AI services, both of which will drive demand for WSO2's solutions. “Software is becoming critical for businesses, and WSO2 holds strong positioning to benefit from the long-term shift toward digital transformation and AI adoption,” stated EQT partner Hari Gopalakrishnan.
WSO2’s innovative culture continues to thrive, with plans to integrate artificial intelligence capabilities across their offerings. The newly debuted API manager allows developers to seamlessly incorporate AI-powered chatbots, reflecting Weerawarana’s commitment to remain on the cutting edge of technology advancements. "AI is not just the future; it's the now," said Weerawarana. The startup is perfectly positioned at the crossroads of these emerging technologies.
Weerawarana's steadfast refusal to relocate to the U.S., even after numerous attempts by investors and competitors to persuade him otherwise, has highlighted his belief in his homeland's potential as a tech hub. “I wanted to show we could develop a product-oriented tech company from Sri Lanka, and it has been proven,” he emphasized. This determination, coupled with the support of his employees and early investors, laid the foundation for WSO2’s sustained success.
WSO2’s story is one of resilience, innovation, and dedication. Weerawarana's vision realized through the work at WSO2 embodies the belief not only many Sri Lankans share about their ability to compete on the global stage but also the importance of fostering local talent and business ecosystems. The acquisition is not merely a transaction; it's the culmination of nearly two decades of hard work, setbacks, and triumphs. WSO2's future within EQT indicates its pivotal role as enterprises worldwide increasingly turn toward digital solutions.
Looking forward, Weerawarana remains optimistic, believing the best yet to come is not just for WSO2 but for Sri Lanka’s tech community. With the right mix of innovation and operational excellence, local startups can emulate WSO2's success and drive global change. “I have made my contributions and will continue to push for more locally-driven tech advancements,” he concludes.