Spendflo has raised $11 million for its platform for buying, managing and securing software-as-a-service (SaaS).
The firm will use the new funding from this Series A round to continue growing the product that already helps companies that are investing in SaaS centralize their intake and approval workflows, access benchmark pricing data, automate third-party risk assessment, and understand real-time spend and usage, Spendflo said in a Tuesday (April 4) press release.
“As the market slows down and purse strings tighten, the all-in-one Spendflo platform is uniquely positioned to give CFOs everything they need to optimize their SaaS spends without affecting productivity and efficiency,” Spendflo CEO Siddharth Sridharan said in the release.
The Spendflo platform currently includes a buying hub that reduces procurement time and ensures savings, a management hub that helps companies avoid paying for tools that their teams don’t use, and a security hub that accelerates vendor onboarding, according to the press release.
It addresses the needs of high-growth companies that use more than 150 SaaS tools, spend over $2 million in subscriptions and devote 900 hours to buying and managing them, the release said.
“The market need was clear: One solution that encompasses the entire SaaS buying journey. So, we built it,” Sridharan said in the release. “Spendflo remains the truly complete solution that helps modern businesses buy, manage and secure SaaS on autopilot.”
Many firms take a “set it and forget it” approach to IT purchases, particularly when it comes to recurring and subscription services that require bank account or card details for automatic payments, Zylo Co-founder and CEO Eric Christopher told PYMNTS in an interview posted in May 2021.
That creates gaps in finance leaders’ ability to control and manage IT spend, Christopher said at the time.
SaaS management helps companies understand what they own, whether it’s being used and whether it’s still needed, Vendr CEO Ryan Neu told PYMNTS in an interview posted in March 2022.
It also helps companies cope with the complexities of SaaS spend such as “shadow IT” — including software that employees bought themselves and known software spending hidden in the general ledger, Neu said at the time.
“When we say ‘visibility,’ we’re talking about getting clarity on both of those so you can have a complete picture on what is in use at the company,” Neu said. “You can’t really start saving money until you know what’s there.”
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