Zip announced recently a $190 million Series D funding round, raising the company’s valuation to $2.2 billion.
The latest investment round reported by Zip is said to have been led by BOND, with additional new investors Adams Street, Alkeon, (some others) along with Zip’s existing investors, Y Combinator and CRV.
As mentioned in the update from Zip, this most recent funding marks the largest investment in procurement technology in over two decades.
Back in 2020, they had co-founded Zip in an attempt to reinvent the slow, complex procurement process by bringing a consumer-grade user experience to B2B purchasing.
Now, Zip has become the intake and procurement orchestration platform, empowering businesses to procure with the “fastest process, least risk, and best value.”
By streamlining intake, sourcing, supplier management, purchase orders, and global payments in one flexible platform, Zip says that it offers “transparency and control throughout the entire procurement lifecycle.”
At the heart of everything they do is a commitment to their customers’ success, ensuring they can deliver “value and impact for their businesses.”
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As an engineering, product, and design-led company, they claim to have continuously pushed the boundaries of procurement technology since day one. Over the past year alone, Zip has reportedly “delivered 500 feature requests, implemented 20,000 code changes, and introduced several groundbreaking products, including Procure-to-Pay, Zip Premier, Zip’s Integration Platform, advanced Zip AI capabilities, and preferred supplier purchasing.”
This approach has transformed operations for industry participants such as Prudential, Snowflake, Instacart, and Northwestern Mutual, with Zip processing “over $107 billion in spend, managing 3.9 million suppliers on our platform, and enabling our customers to save over $4.4 billion.”
Just as Salesforce enhanced customer relationships and Workday transformed employee management, Zip claims that is “redefining how businesses interact with suppliers and managing spend.”
This investment will be deployed to:
- Accelerate R&D, with a focus on building procurement software entirely in-house, including Zip’s rapidly growing Procure-to-Pay product line adopted by major enterprises like Northwestern Mutual, Toast, and Coinbase.
- Establish a Zip AI lab to 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 reach, particularly in the EMEA region, where Zip has experienced 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.
At Zip Forward, they unveiled a brand transformation along with a range of innovations, gathering 400+ finance and procurement executives from various companies.
Now, reaching this Series D milestone, they can think of the opportunities it unlocks for their team, partners, and customers.
As Zip continues to specialize in procurement technology, they aim to also sharply focus on: how to effectively orchestrate the flow of business so companies, markets, and economies can have a “greater impact” on the world.
With this funding round, Zip claims it is poised to become the “global standard” for enterprise business spend.