Prosus, Accel back India SaaS procurement platform
Prosus Ventures and Accel have led a USD 11m Series A round for Spendflo, an India-founded software-as-a-service (SaaS) procurement management platform now headquartered in the US.
It comes 10 months after a seed round featuring Prosus, Accel, Together Fund, Signal Peak Ventures, and Boldcap Ventures. The company has now raised USD 15.4m since its inception in 2020. The proceeds will be used to support growth in the North American market.
Spendflo came into being on the premise that companies were increasing SaaS spending, yet the procurement process was antiquated – what worked for a business using 20 outsourced tools didn’t for one using 120 tools. With a proliferation of supply making price discovery harder, Spendflo found that companies were wasting up to 30% of their SaaS expenditure and huge amounts of time.
The company started out as a SaaS buying point to save costs and has since evolved into an end-to-end solution for SaaS customers. There are three arms to its offering: a buying hub that helps customers find the best SaaS solutions; a management hub that provides analytics on SaaS product usage; and a security hub that facilitates collaboration and automation of vendor security reviews.
The company has experienced “a hockey-stick growth trajectory” since its inception and built a customer base spanning North America, Europe, Asia Pacific, and the Middle East, according to a statement. The company has posted 30% month-on-month growth since the start of 2022, multiplying its revenue 15x and growing its customer base 5x and its team 4x, the statement added.
“In the wake of a financial market downturn, the company’s capital-efficient business model has proven compatible with fast-growing businesses looking for ways to push through and shift strategies from growth-at-all-cost to profitability-first growth,” said Rajiv Ramanan, co-founder and chief revenue officer at Spendflo.
“Spendflo supports the optimisation of everything from a company's cloud software expenses to financial metrics that matter today, including gross margins, runway, and burn rate.”
Ashutosh Sharma, head of India investments at Prosus, added that he is confident in the company’s ability to become a “single source of truth” for SaaS customers by offering value-added features around infosec compliance, cloud cost optimisation, and cybersecurity.
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