Zip, an enterprise software firm, has raised $190m in a Series D funding round, boosting the company’s valuation to $2.2bn.
This latest financial injection was led by BOND, with new backers including DST Global, Adams Street, and Alkeon joining alongside long-term investors such as Y Combinator and CRV.
In an era of digital transformation, Zip stands out for its innovative approach to procurement—a sector traditionally plagued by inefficiencies. Annual corporate expenditure on procurement runs into trillions, representing the second-largest area of business spending after payroll. Despite its significance, the sector has historically suffered from outdated processes that are both time-consuming and costly.
Zip’s platform revolutionizes the procurement landscape by integrating a consumer-grade interface that simplifies the purchasing process akin to online shopping, ensuring compliance, cost-efficiency, and streamlined operations. This transformative strategy has yielded significant savings for major corporations like Snowflake, Discover, and Sephora, with more than $4.4bn saved and over $107bn processed through the Zip system in less than four years.
The fresh capital will be strategically allocated to various growth initiatives. Zip plans to double down on its research and development efforts, focusing on its successful Procure-to-Pay (P2P) product line and expanding into new product categories to meet evolving market demands. Additionally, the establishment of the Zip AI Lab will further enhance its suite of AI solutions, improving integration with existing enterprise systems.
Moreover, Zip aims to accelerate its global outreach, particularly in the EMEA region, leveraging its new London office and expanded team to cater to the growing demand in key markets like the UK, Germany, and France.
Zip’s ascent in the enterprise software space is marked by its commitment to innovation and customer success. “Zip is one of those rare opportunities in enterprise software that doesn’t come along often,” said Jay Simons, General Partner at BOND. He praised Zip’s focus on customer success and product innovation, essential in today’s economic climate.
With a vision to empower businesses globally, Zip continues to set new standards in procurement technology, recently earning a leadership spot in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Spend Orchestration 2024 Vendor Assessment.
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