VNDLY receives investment from identity security partner Okta

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VNDLY, a workforce management technology solution and VMS provider, announced it had entered into partnership with Okta, a provider of single sign-on and provisioning technology. The company also announced that it received investment from Okta Ventures, Okta’s $50 million investment fund.

Okta is a publicly traded company with 2019 annual revenue of $586 million. While the terms of the transaction or the amount of the investment were not disclosed, Okta Ventures’ website indicates the organization targets investments from $200,000 to $1 million. The site also notes that it does not assume seats on the boards of the companies it invests in.

VNDLY, for its part, has received $57.5 million in private equity since its founding in 2017. VNDLY raised $8.5 million in a series B round earlier this year. ServiceNow joined VNDLY’s December 2019 series B investment round of $35 million. VNDLY says that it “serves as the ERP system of record for multiple Fortune 500 companies to manage their entire contingent and non-employee workforce on a single platform.”

Under the partnership, the press release states, Okta will provide single sign-on and provisioning services for all of VNDLY’s clients using Okta’s technology.

“VNDLY is currently live on the Okta Identity Network with a pre-built and pre-configured API integration, so mutual customers can reap the benefits of the ready-to-use integration. About 25% of VNDLY customers in active implementation are using Okta for identity management and provisioning.”

Okta asserts that over 8,400 organizations, including Engie, JetBlue, Nordstrom, Takeda Pharmaceutical, Teach for America, T-Mobile and Twilio, trust Okta to help protect the identities of their workforces and customers. The announcement did not say how the partnership might benefit VNDLY in terms of new customer acquisition.

Monty Gray, Okta’s senior vice president of corporate development, was quoted as saying “VNDLY’s vendor management technology platform provides our joint customers with a solution to easily manage access to critical tools for both employees and contractors, increasing efficiency and security.”

According to the announcement, the partnership now provides “the non-employee labor market a singular, innovative option for secure sourcing, engaging and managing external workforces.”

VNDLY CEO and co-Founder Shashank Saxena was quoted as stating: “Our clients have been looking for ways to extend provisioning into their external workforces, and this partnership increases our ability to provide a modern technology stack that supports each company’s digital transformation." He added, “we want to continue to partner, integrate and innovate with technology partners that are leading and driving this transformation in the modern enterprise. We want to do the hard work and build native API integration at the platform level behind the scenes so each of our clients' IT departments don't have to do the heavy lifting of integrating these solutions."

Spend Matters’ Research Director of Labor and Services Solutions, Andrew Karpie, commented: “As organizations’ workforces will become increasingly agile, remote and mobile, the importance of identity management and sign-on security is non-negotiable. And this partnership also suggests the leaning of VNDLY to not just be an enterprise application, but to be an enabler of enterprises’ digital transformation and a connection into a broader, low-friction digital services ecosystem.”

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