Tradeshift Raises $75 Million: Let the Platform and Supplier Network Funding and Valuation Wars Begin!

- February 25, 2014 1:10 PM
Categories: Breaking News, supplier networks, Technology | Tags:

Earlier today, Tradeshift announced it had raised $75 million in a series C funding round led by Singapore’s Scentan Ventures. The deal also includes exclusive rights for Scentan Ventures to leverage Tradeshift for “product development, sales, marketing and service rights to the Tradeshift platform” in the Japanese market.

In addition, Spend Matters has learned that Scentan Ventures is putting significant resources behind building custom apps for the Japanese market to extend the platform and native capabilities of Tradeshift (and the exiting app ecosystem). The funding round comes in addition to $37 million that Tradeshift has already raised from previous investors, bringing the total capital that it has received to $112 million.

I had a chance to speak briefly with Tradeshift’s Christian Lanng today via Skype, and he shared a number of things on the funding round and Tradeshift’s current position in the market. First, he noted, “we’re moving very fast on the metrics that matter and the funding round is validation of an already high previous multiple,” which Spend Matters estimated is well over 20x revenue. In addition, the round “provides validation of the ecosystem, as the investors are also investing additional capital because they want to build apps on the Tradeshift platform.”

As to Tradeshift itself, Christian said, “We have tripled our deal size since 2012 and most deals are multi-million dollar deals today. This is above average for e-invoicing deals. We are selling the core platform rather than just a P2P product.” Further, he suggests, “we have not sold any deals that were not multiple apps such as workflow, CloudScan, vendor registration, dynamic discounting and similar. It’s how the pieces fit together versus the individual platform elements themselves.”

To this end, Christian notes that his firm has “not had a single deal in the past year that has not involved custom apps built on the platform. There are two certified partners who build these apps for our customers and some customers are even building them on their own.”

We’re sure the Tradeshift team will be celebrating tonight with a toast to apps, apps, and more apps. And the $75 million as well. Stay tuned for further coverage of the funding round and what it means for the market and customers later this week in a detailed Spend Matters PRO analysis.

As a final note, Spend Matters has recently increased its forecast and market size growth for the supplier network and platform market (see our research links below). No doubt, Tradeshift’s funding round provides validation for a sector that is reaching escape velocity from its humble e-invoicing workflow and scan/capture roots.

For further information on Tradeshift and the supplier network and platform, P2P and e-invoicing sectors:

Procurement Vendor Valuation, M&A, and IPOs: Recent Deals and 2014 Forecast 

Supplier Network 2014 Forecast: Customer Recommendations and Vendor Shortlists

Supplier Network Forecast: 2014 Market Growth, Analysis, and Predictions

E-Invoicing 2014 Forecast: Customer Recommendations and Vendor Shortlists

E-Invoicing Forecast: 2014 Market Growth, Analysis, and Predictions

E-Procurement 2014 Forecast: Customer Recommendations and Vendor Shortlists

E-Procurement Forecast: 2014 Market Growth, Analysis, and Predictions

Big Network + Big Money + Big Data: Tungsten Floats a New IPO Boat With OB10

Tungsten and OB10: Supplier Networks – Connectivity Today, Analytics Tomorrow

Tradeshift’s Supplier Enablement Strategy for E-Invoicing – Should Ariba and OB10 be Worried? (Part 1)

Tradeshift’s Supplier Enablement Strategy for E-Invoicing – Should Ariba and OB10 Be Worried? (Part 2)

Tradeshift’s Supplier Enablement Strategy for E-Invoicing – Should Ariba and OB10 Be Worried? (Part 3)

Tradeshift’s Supplier Enablement Strategy for E-Invoicing – Should Ariba and OB10 Be Worried? (Part 4)

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