Belgium-based Odoo determined to make use of open-source instruments as a strategy to assault the enterprise useful resource planning (ERP) software program market, going up towards giants like SAP. Quick ahead a few many years and it’s now choosing up €500 million in secondary funding — or round $527M at present trade charges — led by CapitalG (Alphabet’s enterprise fund) and Sequoia Capital plus different buyers.
The brand new funding sees its valuation rising to €5 billion ($5.26B). Sure, you learn that proper.
Odoo hasn’t wanted to boost major capital in eight years, as a result of with over 5 million customers and 40% progress per 12 months, enterprise is excellent certainly. It’s projected to exceed €650M ($685M) in billings within the subsequent 12 months and is aiming to hit a cool €1B ($1.05B) by 2027. It was beforehand valued at €3.2B ($3.37B) previous to this spherical.
So why is Odoo elevating a piece of money now? The corporate stated the funding shall be used to speed up R&D and product growth — doubtless with its eye on how AI may disrupt ERP enterprise as traditional.
As we reported lately, conventional ERP software program instruments — often offered by IT techniques suppliers — are coming below assault from AI. Cogna is a U.Ok. startup that raised $15 million to get AI to write enterprise software program apps by itself, for instance.
Odoo, which was based again in April 2002, is the brainchild of Fabien Pinckaerson who based the corporate from his farm. He now lives in India, steering the enterprise from there.
Pinckaers advised CNBC he’s in no rush to take the corporate public, regardless of its excessive valuation and revenues.
Pinckaers constructed Odoo up from humble open supply challenge beginnings to a enterprise software program juggernaut that contains over 80 apps spanning a spread of features akin to accounting, CRM, manufacturing and advertising, together with an app retailer of fifty,000+ neighborhood developed apps, serving a big neighborhood of builders and companions.
The vast majority of Odoo’s enterprise is in (free-to-access) open-source software program, with 20% coming from software program licensed for a price (aka, its paid “Odoo Enterprise” merchandise) for customers that need issues like further options.
“Fabien and his group have constructed a one-of-a-kind enterprise from their formidable imaginative and prescient for a unified suite of tightly built-in enterprise apps,” stated Alex Nichols, associate at CapitalG, stated in a canned assertion accompanying the funding.
Writing on his firm’s weblog, Pinckaers added: “ERPs are historically costly and resource-intensive to implement, typically failing to fulfill the precise wants and evolving necessities of SMEs. We’ve got developed a novel worth proposition that’s enjoying a pivotal position out there.”
Odoo final raised funding again in 2014, when it pulled in a $10M Sequence B spherical.
Additionally collaborating on this uncommon new spherical are Alkeon, AVP, BlackRock, HarbourVest Companions, and Mubadala Funding Firm.
Earlier buyers embrace Noshaq, Summit Companions, and Wallonie Entreprendre, which all offered secondary shares to CapitalG and Sequoia as a part of this spherical. Summit will stay Odoo’s largest institutional shareholder.
