San Francisco-based B2B rebate platform Enable has closed a successful Series D funding round, raising $120 million and achieving a valuation of $1.12 billion.
The funding round was led by Lightspeed Venture Partners, with participation by Menlo Ventures, Norwest Venture Partners, Insight Partners and Sierra Ventures. It brings Enable’s total raised capital to $276 million, the company said in a Tuesday (Nov. 7) press release.
Enable offers a comprehensive solution for managing business-to-business (B2B) rebates, catering to manufacturers, distributors and retailers.
Rebates are a common practice in the B2B space, where companies offer incentives to customers who meet specific criteria, such as reaching a certain spending threshold or making referrals. However, tracking and managing these rebates can be challenging, leading to potential errors and missed opportunities. Enable’s platform addresses this by providing a centralized location for managing B2B rebate agreements, ensuring both parties have access to accurate and up-to-date information.
Enable Co-founder and CEO Andrew Butt told TechCrunch that the company’s focus on driving revenue and margin growth for customers has been key to its success. Enable’s top-line revenue has doubled each year over the past four years, he said, with a customer base that now exceeds 10,000 brands.
Enable recently acquired Profectus Group’s rebate deals management platform, allowing the firm to serve customers in Australia and enhance its auditing and compliance technologies.
Enable plans to use the new funding to invest in collaborative products and scale its team, increasing its headcount from 550 employees to 600 by the end of the year.
The company plans to enhance its rebate management platform with an improved claims management process, increased data management capabilities, improved scalability for rebate programs and the integration of artificial intelligence (AI) to further streamline rebate management.
PYMNTS wrote last year that small and medium-sized businesses (SMBs) have a tough time getting their business-to-business (B2B) customers to pay irregular, ad hoc payments — those that are made once, twice or a few times a year — on time. With limited leverage, they often have little recourse other than to offer their buyers discounts for paying on time.
Enable cites research by Gartner on the benefits of using rebates over discounts, saying rebates simplify negotiation, improve margins and incentivize additional purchases.
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