Breaking News! Ivalua Raises $70 Million from KKR

Ivalua, a market-leading Spend Management software company, headquartered in California and Paris, today announces it has raised a $70 million growth equity minority funding from KKR, a leading global investor. Spend Matters has learnt that it plans to use the money in three key areas: sales and marketing expansion, geographic investment and product innovation. As the press release this morning says: "...  to realize its ambition of becoming the global leader in the fast-growing Spend Management Market. KKR will become a new shareholder alongside the Founders and Ardian, which invested in Ivalua in 2011."

Our own Peter Smith spoke briefly this morning to Gérard Dahan, EMEA Managing Director of Ivalua, who was understandably in the very good mood! He said that the firm would "aim to double the number of employees over the next two years, and we will definitely increase our footprint significantly in the UK." Dahan also mentioned the "ability to invest in some technologies like AI and bring them into the platform." Asia is clearly another priority target market where the investment will enable the firm to step up a gear.

Ivalua's Source-to-Pay (S2P) platform is used by over 250 blue chip customers globally, and as our US analysts report: "Ivalua ... has built out a procurement technology suite that one could argue has the greatest “average” functional depth across all its modules relative to peers. Yet this observation only begins to scratch the surface of what makes Ivalua different from SAP Ariba, Coupa, Jaggaer, GEP and the hundreds of other providers that make up the fragmented procurement technology solutions market."

And in an interview with the CEO was told that in areas of sales, marketing and geographic expansion the plan is to “drastically increase the brand awareness in all the regions where Ivalua wants to be, which includes fully scaling up our sales and marketing function. We will cover much more territory, including the Asia/Pacific region. Europe, the U.K., Germany and Nordics will all receive additional focus and investment.”

We estimate that Ivalua's revenues this year will be in the range of $30-$35 million. So while the firm is being quiet about the size of the stake bought by KKR, a wild guess might be that perhaps $70 million bought 25% on a valuation of perhaps $280M? We should stress that is purely an informed guess from our Mr Smith though.

You can read the press release here, and we have more, indepth coverage from our US analysts on Spend Matters US today. As they say: "It’s an exciting time for procurement technology. KKR placing a big investment in Ivalua is further proof of the rate of growth, innovation and organization investment in the sector. But procurement, finance, IT and supply chain teams need to do their own homework to identify which procurement solutions are right for them."

One thing is for sure - this investment puts the vendor and it's full suite firmly in the global spotlight.

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