Company Announcements

Revolutionary AI-powered platform transforms how global enterprises optimize spending, saving industry giants like Snowflake, Discover, and Sephora over $4.4 billion

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 21, 2024-- Zip, the world’s leading AI-powered procurement orchestration platform, today announced $190 million in Series D funding led by BOND. This landmark investment — one of the largest for an enterprise SaaS company this year — brings Zip's valuation to $2.2 billion, a significant increase from its $1.5 billion valuation in 2023. Additional participants in the round included new investors DST Global, Adams Street, and Alkeon, along with existing investors Y Combinator and CRV.

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Zip raises $190M Series D funding at a $2.2B valuation (Graphic: Business Wire)

In today’s global economy where businesses face mounting pressure to optimize spend and mitigate risk, procurement — the process of acquiring goods and services necessary for business operations — has become a critical function. Each year, companies spend trillions of dollars on everything from office supplies and software subscriptions to professional services and marketing agencies. Procurement represents the second largest area of business spend after payroll, yet despite its enormous financial impact, the purchasing process has remained stuck in the past – slow, complex, and riddled with inefficiencies.

“Procurement is broken,” said Rujul Zaparde, Co-founder and CEO of Zip. “Companies are wasting billions of dollars and countless hours navigating byzantine approval processes, dealing with security risks, and manually entering data. Zip has already proven that we can fix that, saving our customers billions of dollars and thousands of hours of time — and our new round of funding will allow us to continue to revolutionize business spending.”

Zip’s platform offers a stunningly intuitive, consumer-grade interface that makes purchasing as easy as online shopping, while ensuring compliance, efficiency, and cost optimization. Zip streamlines complex workflows across departments — from legal and IT to security and finance — seamlessly connecting all teams involved in the procurement lifecycle. This holistic approach has already transformed operations for industry giants like Snowflake, Discover, and Sephora, who have collectively saved over $4.4 billion in procurement spend through Zip’s platform in less than four years. To date, over $107 billion in customer spend has been processed through Zip, and Zip has achieved 3x growth across large enterprises just this year.

Just as Salesforce revolutionized customer relationships and Workday transformed employee management, Zip is redefining how businesses interact with suppliers and manage spending. This new funding will fuel Zip’s mission to become the global standard for B2B spend and will be strategically deployed to:

• Accelerate R&D efforts, doubling down on Zip’s approach to building best-in-class procurement software entirely in-house. This includes further development of Zip’s highly successful Procure-to-Pay (P2P) product line, which has seen explosive growth and adoption by major enterprises like Northwestern Mutual, Toast, and Coinbase. The funding will also support expansion into new product lines to address evolving market needs.
• Establish the Zip AI Labto continue to rapidly develop and deploy cutting-edge AI solutions that integrate effortlessly with legacy enterprise systems. Zip’s existing AI suite has already dramatically improved procurement processes across legal, security, finance, and IT teams.
• Broaden global expansion with a particular focus on the EMEA region where Zip has already seen over 200% growth in the past year. Zip will leverage its new London office and expanded EMEA team to meet surging demand across the UK, Germany, and France. This expansion will solidify Zip's position as the go-to procurement solution for large enterprises worldwide.

“Zip is one of those rare opportunities in enterprise software that doesn’t come along often,” said Jay Simons, General Partner at BOND, who previously served as President of Atlassian (NASDAQ: TEAM). “What sets Zip apart is its relentless focus on customer success and product innovation, which in today’s tough macro environment, is exactly what enterprises need to drive efficiency and rein in costs. The team has built a product so essential that it’s quickly becoming the go-to platform for the world’s biggest companies. We’re confident Zip is primed to be a staple in every Fortune 500 tech stack.”

As Zip continues to push the boundaries of what’s possible in procurement technology, it remains committed to its core vision: to create a world where every business can access the suppliers and resources they need to operate at peak performance. This innovative approach has not gone unnoticed, with Zip recently recognized as a Leader in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Spend Orchestration 2024 Vendor Assessment (doc #US51795424, September 2024). With this latest funding round and industry recognition, Zip is poised to redefine the future of B2B spend and cement its position as the global standard for procurement orchestration.

Zip was represented by Goodwin Procter for this financing.

About Zip

Zip is the world’s leading procurement orchestration platform, empowering businesses to accelerate the procurement process, mitigate risk, and drive growth by offering a single front door to unify the teams, tasks, and tools involved in working with suppliers. With Zip, businesses can maximize employee adoption of purchasing policies and increase spend visibility and control. As the leading solution for optimizing business spend, Zip's AI-powered platform is trusted by hundreds of leading enterprises worldwide, including Anthropic, Arm, Canva, Coinbase, Discover, Dollar Tree, Instacart, Lyft, Northwestern Mutual, Prudential, Reddit, Sephora, Snowflake, and Sprouts to maximize the ROI of every dollar. To learn more, visit ziphq.com.

About BOND

BOND is a global technology investment firm that supports visionary founders throughout their entire life cycle of innovation and growth. BOND's founding partners have backed industry pioneers such as Airbnb, Canva, Docusign, DoorDash, Facebook, Instacart, JD.com, Peloton, Plaid, Revolut, Ring, Slack, Snap, Spotify, Square, Stripe, Twitter, Uber, and Waze.

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chrysta@theolsoncompany.co

Source: Zip