AI-Enhanced Procurement Startup Zip Locks Up $190M At $2.2B Valuation

Procurement startup Zip noticed its valuation bounce 47% after elevating a $190 million Collection D led by Bond.

The spherical additionally included new traders DST Global, Adams Street Partners and Alkeon Capital, together with current traders, Y Combinator and CRV.

The spherical values the San Francisco-based firm at $2.2 billion. In Might 2023, Zip locked up a $100 million Series C at a $1.5 billion post-money valuation.

Zip helps corporations with the burdensome course of of shopping for new software program and {hardware}, serving to prospects with sourcing, approving and paying for enterprise instruments.

“Zip is a type of uncommon alternatives in enterprise software program that doesn’t come alongside usually,” mentioned Jay Simons, common associate at Bond. “What units Zip aside is its relentless concentrate on buyer success and product innovation, which in in the present day’s powerful macro atmosphere, is strictly what enterprises have to drive effectivity and rein in prices.”

The corporate will use the brand new money to put money into engineering and analysis and growth, together with a brand new inner AI lab to create new AI-powered instruments. The cash additionally will likely be used to broaden geographically.

Based in 2020, the corporate has raised greater than $371 million, per Crunchbase.

Procuring funding

Procurement falls beneath the broader umbrella of enterprise useful resource planning — software program methods that assist enterprises run processes in departments comparable to finance, human sources and provide chain.

ERP startups haven’t seen enormous funding {dollars} in current occasions, based on Crunchbase data.

In 2023, startups within the sector raised solely $240 million in 62 offers. Up to now this yr has been barely higher, with $314 million raised in 32 offers.

Zip’s increase final yr was the most important within the house in 2023, and its new funding spherical is the largest to date this yr.

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Illustration: Dom Guzman