Ten Coves Capital, EDC join existing backers Information VP, HarbourVest.
Vancouver-based spend management and procurement software startup Procurify has secured more than $68 million CAD ($50 million USD) in Series C funding.
The all-equity, all-primary round closed in the summer and was led by United States-based FinTech investor Ten Coves Capital and included a co-investment from fellow new investor Export Development Canada. It also saw participation from existing Procurify backers like Toronto’s Information Venture Partners and Boston-based HarbourVest Partners.
Procurify’s Series A round comes over four years after the company closed $26 million CAD in Series B financing. This latest capital brings Procurify’s total funding to more than $95 million. Procurify plans to use the funding to fuel its global expansion, roll out new payment capabilities, and strengthen its core procure-to-pay platform with artificial intelligence (AI).
Founded in 2013, Procurify aims to take some of the pain out of enterprise procurement. The company sells an all-in-one intelligent spend management platform to mid-market organizations. Procurify’s solution combines purchasing, accounts payable automation, and data analytics into a single platform. Today, Procurify helps hundreds of customers across dozens of industries manage more than $40 billion CAD in global spending, with a list of clients that includes Questrade, SkipTheDishes, Hootsuite, and Asana.
“Understanding how money exits the company is just as crucial as tracking the money flowing in,” Procurify co-founder and CEO Aman Mann said in a statement. “Not only do we want our customers around the globe to spend wisely and grow during the best of times, we also want them to leverage responsible spend practices to thrive during the worst of times.”
A Procurify spokesperson declined to disclose Procurify’s exact valuation as part of its Series C funding to BetaKit but claimed that it was “a significant up round” compared to its previous financing.
Within the procurement software space, Procurify’s competitors include incumbents like Coupa and SAP Ariba, enterprise resource management software solutions that have procurement features, such as NetSuite, as well as other tech startups, like Precoro and Zip. Compared to the competition, the company spokesperson claimed that Procurify offers “the most complete, affordable, and user-friendly solution for mid-market organizations.”
Ten Coves Capital invests in high-growth B2B software companies across the FinTech ecosystem. In addition to Procurify, the Connecticut-based growth equity firm’s Canadian portfolio also includes Q4 Inc, 7shifts, TealBook, TouchBistro, and Versapay.
According to the Procurify spokesperson, the pandemic brought some tailwinds for Procurify, including an acceleration in digital transformation efforts as it highlighted the need for cost savings, efficiency, and better risk management.
Amid a tough economic environment, Procurify claimed that the demand for its tech has grown and the firm has seen a 100 percent year-over-year increase in new sales, all while the startup has managed to avoid layoffs and grow to 171 employees.
Steve Lula, partner at Ten Coves Capital, is joining Procurify’s board as part of the round. In a statement, Lula cited Procurify’s performance during these challenging market conditions as evidence of the need for intelligent spend management solutions.
According to Lula, Procurify’s expertise in procurement, coupled with its plan to roll out enhanced payment offerings and use AI to offer data-driven predictive insights, position the startup “to shape and lead the future of the procure-to-pay market.”
While Procurify already has hundreds of customers worldwide, the startup sees room to continue to expand and deepen its global presence in Europe and the Oceania markets.
UPDATE (10/17/23): This story was updated to note responses from a Procurify spokesperson.
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