Spend Management Content

With $60 million funding round, Ivalua reaches ‘unicorn’ status of $1 billion valuation

Ivalua, likely the fastest growing privately held source-to-pay procurement suite technology provider, announced Tuesday morning that, with its latest funding round, it has gained “unicorn” status for start-ups by reaching $1 billion in valuation.

It raised $60 million from a new investor, Tiger Global Management, and Ardian Growth, one of Ivalua’s early investors that raised its investment level. Tiger Global joins Ivalua’s founders, KKR and Ardian as shareholders, the announcement said.

Ivalua Has Been on Spend Matters’ Radar for Years

Long before becoming a $ 1 billion "unicorn" company, Ivalua has been a procurement software provider that’s consistently shown up on the radar of Spend Matters’ analysts for years. We’ve introduced subscribers to an array of Ivalua’s developments for about the last 10 years, including how the spend management provider matches up against the biggest names in the industry.

Check out our coverage, which features SolutionMap data, head-to-head comparisons with its competitors, and PRO analysis over the years. (Some of our first coverage of Ivalua was done in 2010 before we even had subscribers!)

Coupa to Acquire Exari: What Type of CLM Solution Is Coupa Getting? (Part 1) [PRO]

Coupa just announced that it intends to acquire Exari, a leading provider of contract lifecycle management (CLM) solutions. Terms of the deal were not provided, but with Exari having almost 150 employees, it’s not unreasonable that the private firm would have over $30 million in revenues and a deal size valued at just over nine figures. Contract management is a red-hot space right now, and Coupa has a very strategic need for this product. Spend Matters believes that this acquisition is a very smart hand-in-glove acquisition even though it’ll require some alterations to truly fit properly.

Coupa currently has a basic contracting module as part of its “Business Spend Management” application suite within the source-to-pay market, but it was missing two critical aspects of modern CLM that are major strengths for Exari. On a product functionality basis, Exari is one of the very top performers in Spend Matters’ CLM rankings on SolutionMap, and it “ticks all the right boxes” for a best-of-breed CLM performer. It’s also unique in its knowledge-based approach to deep contract modeling rather than just straight AI and machine learning based on contract text analytics.

CLM is also not a one-size-fits-all proposition, and the market landscape depends heavily on many factors. Some providers are much more oriented toward the sell-side — e.g., CPQ-oriented providers such as Apttus or SpringCLM (recently acquired by DocuSign). Some are focused on the mass market with usability being a key focus (e.g., Concord, Outlaw, PandaDoc, etc.). And even within large enterprises looking at firms like Exari, Icertis, Agiloft, SirionLabs, and others, they differ in their requirements as to whether they want “deep” functionality, maximum configurability, ease-of-integration, attractiveness to many functions (e.g., the legal department), and/or being part of a larger application suite.

So, what is Coupa getting with Exari? What types of organizations are the best fit for this solution and the combined solution of Coupa and Exari? Is Exari a solution optimized for legal, procurement or both? And what will Coupa need to do to integrate Exari since this acquisition is not some simple bolt-on, but rather, a core platform component? Finally, what is the impact of this acquisition on the S2P and CLM markets?

This Spend Matters PRO quick take analysis provides insight for Coupa customers and the broader market on specifically what the provider is acquiring. Unlike past acquisitions, we believe Exari represents the greatest stretch away from its core economic buyer (at least historically). Find out why.

For an introduction to Exari, we encourage you to read our Spend Matters PRO review: Introduction & Solution Overview, Strengths/Weakness and Market/Competitive Analysis.

Coupa to Buy Exari, Boosting CLM in Its Business Spend Management Suite

Efficio

Coupa Software is buying Exari to gain its best-of-breed contract lifecycle management (CLM) offering, Coupa announced Tuesday morning. Coupa, a San Francisco-area suite provider of business spend management (BSM), said in a news release that the transaction for Boston-based Exari is expected to close in its second fiscal quarter. In a disclosure to investors, it said the aggregate purchase price for the transaction is about $215 million in cash.

Exari is a top performer in Spend Matters’ CLM rankings on SolutionMap, and it is unique in its knowledge-based approach to deep contract modeling rather than just straight artificial intelligence (AI) and machine learning based on contract text analytics.

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How to Create Value by Benchmarking the Back Office

We recently introduced you to this year’s Coupa Benchmark Report, “12 KPIs to Drive Profitability and Growth with Business Spend Management.” This unique report, based on nearly $1 trillion of actual operating data from businesses around the world, outlines 12 key performance indicators (KPIs) to help you measure and increase your organization’s business spend management (BSM) maturity.

Across the categories of source-to-contract, purchasing, invoicing, and expenses management, there are countless opportunities to assess and analyze your organization’s progress towards BSM maturity, but the 12 KPIs Coupa has identified are especially important.

Why? Read on!

Direct Spend to See an Increase in Outsourcing: Report

A new report from Texas-based research firm Everest Group analyzes the factors contributing to suboptimal direct spend management. The report — “Is It Time to Outsource Direct Spend Categories?” — aims to provide a process for enterprises to begin changing their approach to direct spend management.

Zycus: A Comparative Analysis of the S2P Suite (Source-to-Pay SolutionMap Analysis)

Zycus is part of an exclusive club.

It is one of the few source-to-pay suite vendors on the market that can offer at least adequate functional support across all six modular areas that Spend Matters tracks for S2P using only its internally developed capabilities. This stands in contrast to several of its biggest competitors, which have to varying degrees of success acquired and integrated best-in-class vendors or other suites to bolster their own capabilities.

And while Zycus cannot today claim its technology runs its suite of applications on a single data model, more than 95% of the solution is unified, and when compared against the market, it generally presents broad-based and out-of-the-box capability. Its solutions not only provide strong baseline (sometimes above-the-benchmark) functionality but they come from a single provider that is responsible for making it all work together.

This Spend Matters SolutionMap analysis examines Zycus’ solutions by modular and suite view to help interested parties understand the best components that make up the vendor’s end-to-end offering. It provides insight into which areas Zycus is strong in (and where it lags), how competitive individual modules are compared with best-in-class alternatives, and how combinations in the form of procure-to-pay (P2P), strategic procurement technology (SPT) and source-to-pay (S2P) suites stack up in comparison to Zycus’ broader peer group, including Coupa, Jaggaer, SAP Ariba, Ivalua and SynerTrade.

For this analysis, our report uses the aggregate results of nine SolutionMaps from Q4 2018 (the most recent in our quarterly update cycle), comparing a total of 58 solution providers across more than 600 granular functional benchmarks, which are aggregated into more manageable, tiered buckets for the purpose of this analysis. (Those procurement organizations leveraging SolutionMap for a software selection process gain insight into comparative performance at a significantly more granular level of detail that maps business requirements to functional performance.) The SolutionMap analyst ratings, also called the Solution scoring, used in this analysis are based on more than 3,000 hours of live product demonstrations and validated vendor RFI responses.

In subsequent briefs exploring SynerTrade and others, we will take a similar approach to analyzing source-to-pay providers, breaking down where end-to-end platforms excel (or fall below the functional benchmark) on module and suite bases. Previously, we covered the suite performances of Jaggaer, SAP Ariba, Ivalua and Coupa.

Fairmarkit: Vendor Introduction, Analysis and SWOT (Part 1) — Background and Solution Overview [PRO]

Tail spend is a growing area of concern for procurement. Given the granular, dispersed and opaque nature of such spend, many organizations find the task of taming the tail daunting.

Purpose-built tools have long existed that adequately address strategic sourcing activities (e-sourcing) and route internal users to pre-approved catalog items (e-procurement), yet technology to support the 20% of spend that is not actively managed by procurement has comparatively lagged.

Instead, the answer for most procurement groups has been to either attack tail spend with a patchwork of variably effective methods (p-cards, marketplaces) or outsource the problem entirely, like to a BPO firm.

Yet neither of these methods is particularly attractive. With the patchwork approach, issues around risk and control are poorly addressed, and while routing purchases under a low threshold (e.g., $500) into a marketplace can satisfy the typical spot buy, this hardly represent a strategy around optimizing tail spend.

BPOs offer expertise and a “set-it-and-forget-it” mentality, but organizations often find that the process efficiencies that they had hoped to gain don’t materialize as promised.

Finding a third way between the patchwork and complete outsourcing is at the heart of how Fairmarkit, an upstart vendor out of Boston, is trying to solve the tail spend management problem.

By using machine learning to analyze purchasing patterns and vendor fit, Fairmarkit automates the RFQ process for variable purchases that fall in the roughly $500 to $250,000 range. In the process, it wants to challenge the status quo for how businesses think about tail spend, enabling procurement groups to automate bidding and analysis on low-value purchases so they can assign team members solely to strategic events. And Fairmarkit already has had success doing so, claiming an average of 6% to 12% cost savings with clients as varied as the Massachusetts Bay Transportation Authority (MBTA), Univision and Yeti.

This Spend Matters PRO Vendor Introduction offers a candid take on Fairmarkit and its capabilities. It includes an overview of Fairmarkit’s offering, a breakdown of what is comparatively good (and not so good) about the solution, a SWOT analysis and a selection requirements checklist for companies that might consider the provider.

Public Spend: A Look at 4 Value Levers for Public Procurement

It’s time to check in with Public Spend Forum, a sister site, to see what’s happening in public procurement. This week, we’ll focus on an article that offers some in-depth tips on four value levers for public spend. PSF offers a simple list — and then a lot of detail about each item. Click above for the highlights.

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Long-term ROI from Spend Analytics: 3 Places to Think Outside the Box

Spend analytics solutions often get passed over when it comes to claims of ROI. But spend analysis can provide just as much value as better-explored options like e-procurement or sourcing systems, sometimes providing ROI immediately after being turned on. Yet quick wins and short-term value are only the starting point.

To help procurement pull its head out of the past and begin to see (and plan for) the future, here are three outside-the-box areas where spend analysis can unlock new sources of long-term value.

Profiting from Digital Disruption: Certify’s T&E Report Shows 2018 Winners

sharing economy

Digital disruption remained a force in 2018 with brands such as Uber, Amazon and Lyft jockeying for position in the top 10 most-expensed vendors, according to Certify’s 2018 SpendSmart Year in Review Report on travel and expense filings. Companies and business travelers are increasingly choosing digital brands over traditional providers for everything from meals to office supplies to transportation, according to the Portland, Maine-based provider of spend management solutions. In compiling the Year in Review, Certify drew from more than 50 million expenses and $3.3 billion in expense transactions across its North American customer base.

The SpendHQ Customer Experience: What Makes It Great (Spend and Procurement Analytics SolutionMap Analysis)

data analytics

Editor’s note: This “What Makes It Great” column is normally reserved for SolutionMap Insider Subscribersbut SpendHQ has generously agreed to support access for readers who are not yet members.

Spend and procurement analytics solutions are fundamentally  designed for business users rather than IT organizations — or should be. Why? Because procurement is their master.

But all too often, IT-led business intelligence initiatives — or spend analytics solutions built on the premise of BI-centric reports rather than a design-centric philosophy around procurement and category management needs — end up becoming the vehicle by which an organization looks at its spend and supplier data. The result? Some of the most salient potential insights go unfound.

SpendHQ, a solution built “by procurement and for procurement users,” takes a different approach entirely to the spend analytics process and the presentation of spend and category intelligence. This is reflected in what its customers have to say about its solution and how their experience compares to users of more traditional, BI-centric spend analytics.

As of December 2018, the Spend Matters SolutionMap contains functional and customer satisfaction benchmarks on more than 50 providers within the procurement technology landscape. But where does SpendHQ stand out most and help “set the bar” in spend analytics from a customer-ratings perspective, and why should this matter for procurement and finance organizations?

Let’s delve into the SolutionMap benchmark to find out where SpendHQ is great, sharing both customer anecdotes and ratings.

“What Makes It Great” is a recurring column that shares insights from each quarterly SolutionMap report for SolutionMap Insider subscribers. Based on both our rigorous evaluation process and customer reference reviews, each brief offers quick facts on the provider, describes where it excels, provides hard data on where it beats the SolutionMap benchmark and concludes with a checklist for ideal customer scenarios in which procurement, finance and supply chain organizations should consider it.