Coupa Valued at Over $1B in Latest Funding Round

Coupa Software, one of the leading and highest growth procurement technology suite providers, announced it raised $80 million in it latest funding round, bringing the total capital raised to over $165 million. The latest funding round was made at a post-money valuation of over $1 billion, according to the company.

The round was led by “funds and accounts” and advised by T. Rowe Price and Iconiq Capital. PremjiInvest also participated. According to a Coupa announcement, “Existing investors Crosslink Capital, Battery Ventures, El Dorado Ventures and Rally Ventures also participated…This round’s backers join the list of previous investors, which include Meritech Capital Partners, Mohr Davidow Ventures and Blue Run Ventures.”

Spend Matters estimates the round was done at a 15X or higher top-line valuation, which is not a surprise given how investors are looking at premium assets in the procurement, finance and supply chain technology markets. The size of the round and valuation is important and speaks to the general investment climate (e.g., Taulia and Tradeshift were rumored to have been valued at similar high multiples in recent large funding rounds). As another sector CEO jokingly commented to Spend Matters this morning on learning of the deal, “$1B is the new black.”

Spend Matters initial analysis suggests the following:

  • The round should put to rest any concerns potential customers may have around Coupa’s longer-term viability compared to the ERP giants
  • From a partner standpoint, it will provide further credibility for firms to invest in building their Coupa implementation and configuration practices
  • The valuation and size of the round supports the argument that single-platform procurement/finance/supply chain technology suites are more valuable than those that are loosely coupled or built on multiple stacks (the valuation multiple difference can be an order of magnitude in certain cases)
  • The valuation is likely to provide further support for higher valuations for competitive cloud purchase-to-pay (P2P) and related solutions including both private companies and public organizations – especially if they can show growth metrics that are in a similar league to Coupa
  • The round should put to rest any rumors of an immediate IBM or Oracle buyout of Coupa (which have been rumored to be on and off for years)

Spend Matters will be speaking with Coupa’s CEO Rob Bernshteyn today and this week at Coupa Inspire. Stay tuned for further coverage on the funding noise.

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