Procurement Startup Zip Valued at $2.2 Billion After $190 Million Funding Round

Procurement startup Zip secured $190 million in Series D funding, increasing its valuation to $2.2 billion (up from $1.5 billion in 2023).

The investment is one of the largest in procurement technology in more than 20 years, according to a Monday (Oct. 21) press release.

As companies face increasing pressure to optimize spending and manage risk, procurement goes under the microscope because, in many cases, it’s the second-largest expenditure after payroll, the release said.

“Procurement is broken,” Zip CEO and co-founder Rujul Zaparde said in the release. “Companies are wasting billions of dollars and countless hours navigating byzantine approval processes, dealing with security risks and manually entering data. Zip has already proven that we can fix that, saving our customers billions of dollars and thousands of hours of time — and our new round of funding will allow us to continue to revolutionize business spending.”

Zip plans to use the capital to enhance its research and development efforts, focusing on building advanced procurement software in-house, the release said. This includes expanding its Procure-to-Pay (P2P) product line.

Additionally, Zip will establish a Zip AI Lab to accelerate the development of artificial intelligence solutions that integrate with existing enterprise systems, per the release.

The funding will also support Zip’s global expansion efforts, particularly in Europe, the Middle East and Africa (EMEA), where it has experienced over 200% growth in the past year, according to the release.

Zip integrates workflows across various departments — such as legal, IT, security and finance — facilitating collaboration throughout the procurement lifecycle, the release said.

The funding round was led by BOND, and new investors included DST Global, Adams Street and Alkeon, per the release. They joined existing backers like Y Combinator and CRV.

In April, Zip added new enterprise capabilities to its intake and procurement orchestration platform and intake-to-pay suite. Zip Premier is designed to help businesses manage compliance, strengthen integrations with other tools and scale faster.

“Developed alongside our largest enterprise customers, our new capabilities streamline the entire spending process, delivering enterprise-grade performance with consumer-grade flexibility so our customers can drive compliance and scale with speed,” Zaparde said at the time.

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