Breaking News! Ivalua Achieves ‘Unicorn’ Status with $1bn Valuation After Securing $60m Funding Round

Cloud-based spend management firm Ivalua, possibly the fastest-growing, still privately held, source-to-pay-suit technology provider, announced today that it has secured $60 million in growth equity funding from Tiger Global Management and Ardian Growth. Headquartered in Paris and the United States, Ivalua has achieved start-up ‘unicorn’ valuation of $1 billion.

The press release states however that “Ivalua’s management retains a majority stake in the company to ensure stable, long-term planning and a continued focus on customers.”

Ivalua’s ‘big news’ comes after it recently announced it is on track to exceed $100 million in annual revenue, and as spend management continues to be one of the most rapidly growing segments in the software-as-service (SaaS) market, with the overall market for spend management estimated at over $20 billion. It also comes at a time when tools like AI are being used more and more to advance procurement technology and automate many invoice-related tasks, affording procurement practitioners more time for more strategic work, to manage risk and collaborate with suppliers to drive innovation.

According to the press release: “Ivalua has grown while maintaining profitability. The additional funding will support future investments in organic product innovation, global expansion and possibly strategic acquisitions. David Khuat-Duy, CEO and Founder of Ivalua, said, ‘This investment by one of the world’s leading investment funds is a further testament to Ivalua’s long term strategy and business model. This additional capital will allow us to deliver ever more value to our customers and secure future growth.’”

Our US site quoted Spend Matters founder, Jason Busch saying that: “The move is important for the market and Ivalua’s future, as Ivalua fortifies its balance sheet, we expect it to become more aggressive in terms of both organic R&D — in such areas as contract management, financing/payment and services procurement — and inorganic expansion … but just as important is that the founders and management team have no intention of giving up control of their vision and the path to execute it on their own terms and own timeline.”

Spend Matters has had its eye on Ivalua for some time; following an announcement at Ivalua NOW  in April that the company has ‘big plans,’ Spend Matters Chief Research Officer Pierre Mitchell deemed Ivalua to be “the next procurement megavendor to step out of the shadows.”

“Ivalua will be the next break-out vendor, following on the heels of SAP Ariba and Coupa (on a software/SaaS revenue basis, at least),” he said. “Ivalua is like the tortoise in the race with the hare, but in this case, the tortoise has been putting on roller-skates and building a jet pack into its upgraded shell (161 upgrades to be exact).”

A Spend Matters SolutionMap analysis of Ivalua this year said the source-to-pay provider, until recently, “has not gotten the attention its capabilities would suggest it deserves on the global stage.” How right it was!

Read the press release here

And read Spend Matters initial announcement here – with more to come.

 

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