Software startup ZipHQ hits US$2.2b valuation
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The news: Business procurement software startup ZipHQ raised USD190 million ($285.38 million) in a new funding round, increasing its valuation to USD2.2 billion from USD1.5 billion last year, the startup said.
The round was led by new investor BOND, alongside new investors like DST Global, CRV and Y Combinator.
The context: Zip’s AI-driven platform streamlines the purchasing process for businesses handling tasks across departments like finance, IT and legal.
The new funds will go towards expanding their R&D, including creating new AI tools, and growing their reach in the EMEA region, it said.
The deal comes as funding for enterprise software startups is rebounding from post-pandemic lows, largely driven by the surge in AI development. In Q2, software startups secured US21.9 billion across 713 deals, according to PitchBook, marking the highest quarterly deal value in over a year.
What they said: “Procurement is broken,” co-founder and CEO Rujul Zaparde said in the statement.
“Companies are wasting billions of dollars and countless hours navigating byzantine approval processes, dealing with security risks, and manually entering data. Zip has already proven that we can fix that, saving our customers billions of dollars and thousands of hours of time — and our new round of funding will allow us to continue to revolutionize business spending.”
The sources: Zip statement , Bloomberg
