- Zip recently announced that it raised $43 million in Series B funding. Those are the details.
Zip – a leading admissions-to-procurement solution – recently announced its $43 million Series B funding round led by YC Continuity with participation from Tiger Global and CRV. And that brings Zip’s total funding to $81 million and the company’s valuation to $1.2 billion in just 18 months since inception with Series A of $25 million and multiple seed investments over the course of the year. this period.
The company’s enterprise-grade platform enables employees to make business purchases with a consumer-like experience. Launched in 2020 by Rujul Zaparde and Lu Cheng, Zip has over 100 customers, including industry leaders like Canva, Snowflake, Roblox, Coinbase, Airtable, Toast, Webflow, and Databricks.
The company also quickly grew to over 130 employees. The latest round of funding will be used to accelerate adoption and talent acquisition, with plans to double headcount by the end of 2022.
Finance and procurement teams in organizations of all sizes are struggling to keep up with the rapid adoption of technologies and services driven by digital transformation. And the friction has only increased as purchasing decisions have become more decentralized. Zip provides an effortless welcome experience for any employee to request a company-related purchase; orchestrating this purchase through complex approval workflows; and full visibility for all stakeholders throughout the process.
Zip starts with the world’s easiest experience for employees to initiate a procurement request, whether it’s software, services or something else. And the employee begins by responding to a conditional admission form. From there, Zip generates a policy-based approval workflow involving any number of stakeholders and required steps, either in parallel or in sequence. All stakeholders, from requester to procurement to approvers from all cross-functional teams, can then have a clear view of the approvals required for their request. Finance, Legal, Purchasing, IT, Security and Privacy instantly know exactly what’s going on with any request, at any time.
Zip offers a unique and intuitive consumer-grade experience. And by contrast, the typical business procurement process requires 3-6 teams and disparate systems, 5 or more hours of training just to initiate a request, and 25+ emails. In a distributed spend environment, CFOs and purchasing managers need employees to embrace their centralized systems to reap the benefits of everyone following the formal process. With Zip, CFOs and purchasing managers see major improvements in spend visibility, savings, and compliance by giving employees a quick and easy experience they’re happy to use.
Additionally, Zip’s platform provides pre-built, best-in-class, configurable no-code workflows for any non-technical employee to design a world-class process. And the procurement workflow is inherently complex because it spans many different teams and systems. Zip takes a unique approach as a gateway and orchestration layer with flexible, pre-built connectors for key enterprise systems, including ERPs like NetSuite, Workday and others; contract management software such as Ironclad and DocuSign; IT ticketing software such as Jira and ServiceNow; and above all, communication software like Slack and Microsoft Teams. Zip’s pre-integrated connectors into other systems allow every team to take advantage of their favorite software tools, without having to connect to Zip. For companies that don’t yet have some or all of these systems, approvers simply approve or reject natively in Zip or via Slack and email.
“The simple task of purchasing software or services has become hopelessly complicated, even in the most innovative companies in the world. As procurement has become increasingly decentralized, many stakeholders in the process – finance, legal, IT and the business users themselves – are growing frustrated. Zip is the premier single source of truth for a modern decentralized procurement process. Zip provides an intuitive front door and clear visualization of the entire workflow so that every stakeholder has visibility into what’s going on. We’ve invested in Zip’s world-class team because they’ve elegantly solved this pervasive business problem and created a product that users across procurement, legal, finance, IT and professional services all love.
— Ali Rowghani, Managing Partner at YC Continuity
“It’s amazing how quickly thought leaders in procurement, finance and IT are moving to Zip. Prior to Zip, employees were bogged down with numerous duplicate admissions across various systems, whereas Zip now orchestrates the admissions process into one frictionless, integrated experience.
— Michael Denari, Head of Global Spend and Enterprise Systems at Canva
“Coinbase is the most trusted and secure crypto platform. It is essential for us to uphold the highest standards of compliance and risk management, while creating a seamless procurement experience for employees. In my 20+ years in procurement, I’ve never been so excited about procurement software. Our employees love Zip, it’s even become a verb here.
— Cindy Yan, Vice President of Source to Payment and Vendor Management at Coinbase
“The explosion of SaaS and the decentralization of purchasing decisions has created enormous friction for modern enterprises. Everyday employees trying to solve business challenges and innovate through new software purchases or service providers have been severely underserved by outdated manual processes and clunky legacy software that no one wants to connect to.
“I have seen how frustrating it is for business users to navigate through byzantine processes in the procurement process. People are wondering not just how to get started, but how to get all the proper approvals to get what they need to do their job. This latest investment will allow us to bring our enterprise-grade platform to more forward-thinking companies and fulfill our mission to reinvent the way organizations manage their procurement process.
— Co-founder and CEO of Zip Rujul Zaparde