Sastrify Raises $32 Million to Tackle ‘SaaS Sprawl’

Procurement platform Sastrify has raised $32 million to help companies avoid overspending on software.

The Series B round will help the company scale its teams in the United States and Europe and accelerate product development as Sastrify tries to tackle what it referred to as “sprawl” in the Software-as-a-Service (SaaS) procurement field, according to a Thursday (May 25) press release.

“According to industry research, more than $200 billion and 3.9 billion working hours will be wasted on software buying in 2023, while one in five companies will have experienced a cyber event related to shadow IT,” Sastrify said in the release.

The data shows that the typical company overspends by more than 30% on its SaaS costs and wastes upward of 400 hours yearly on managing SaaS contracts, per the release.

“As a result of the rise of SaaS solutions, accelerated digital transformation due to COVID and the current global economic climate, scalable SaaS management has become table stakes for running a successful company,” said Philipp Schroeder in the release.

Schroeder is a partner at Endeit Capital, which led the financing round.

Meanwhile, PYMNTS researched efforts by SaaS firms to control costs on their end through automated spend management systems.

The study found that 74% of large firms (500 to 1,500 employees) are likely to have already integrated a non-payroll spend management solution, as have 39% of small firms (100 to 500 employees). Large firms showed more interest in non-payroll spend management systems due to their higher volumes of non-payroll transactions.

That’s a message to all companies that these systems can produce savings in terms of money and staff time. Thirty-one percent of executives said their accounts payable teams could integrate new software within one month, and 57% said integration would take as little as two weeks.

All the content management system (CMS)-providing firms studied that didn’t “have a system are at least somewhat interested in one, with 80% very or extremely interested,” the study found. “Project management SaaS solution providers’ interest is not far behind. Eighty-nine percent are at least somewhat interested, and 69% are very or extremely interested.”

According to the research, project management firms were slightly more likely to be very or extremely willing to shell out for an alternative system to oversee all non-payroll spending than CMS providers, at 78% versus 75%.

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