The Boston-based company buys and renews SaaS services for clients and analyzes the usefulness and cost-effectiveness of their SaaS setups.
Vendr said in the announcement that the newly raised funds will be used “to accelerate platform development, helping organizations cut costs, manage their second-highest expense — software — and reduce risk in light of the economic downturn.”
Vendr customers use 300 SaaS tools and spend $350,000 monthly on them, the company reported.
“Everyone tells you to cut costs when the economy shifts, but no one tells you how. We’re the how,” said Ryan Neu, co-founder and CEO of Vendr. “We’ve handled over ten thousand software transactions for our customers and learned that most companies overspend on software by 20-30%. We have the buying repetition and data to get our customers a fair price, and in fact, we guarantee to save them more than we cost, achieving a 9x ROI for them on average.”
Neu told PYMNTS in March that software purchasing can “overload” businesses because of the array of options.
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More here: More Businesses Seek Help Purchasing, Managing Software — a Top 5 Expenditure
Vendr said that over the past year, it managed $1 billion in its clients’ SaaS spending and saved them a total of $200 million.
The Series B round announced today was led by new investor Softbank Vision Fund 2 and existing investor Craft Ventures. Additional investors in the latest round include: Sozo Ventures, F-Prime Capital, Sound Ventures, Tiger Global and Y Combinator.
“Increasing capital efficiency is a priority, whether you’re a startup founder or enterprise CFO,” Craft Ventures co-founder and Vendr board member David Sacks said. “By helping to cut annual SaaS expenses, Vendr is one of the easiest ways a company can save money. As an early investor in Vendr, we’ve long understood the potential, but in the current economic climate, the need for Vendr is stronger than ever.”
