SaaS Platform of Record Surpasses $250 Million in Managed Spend, Adds 60+ Customers in Last 12 Months
Tropic, the platform of record for SaaS, confirmed $25 million in new funding from Canaan Partners, with participation from Founder Collective and Mo Koyfman’s new fund, Shine. It follows four quarters of rapid growth as Tropic’s managed spend surpassed $250 million and customer base climbed above 60 logos, including Qualtrics, Vimeo, Zapier, and Intercom, with half signing in just the last quarter. The funding solidifies Tropic’s vision for a software procurement model that saves companies money and enables their finance and procurement teams to outsource the busy work. Tropic will use the funding to expand its platform functionality to deliver more savings, streamlined workflows, and better insights while expanding its growing ecosystem of integrations into existing procurement tools.
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“Tropic is transforming procurement to accommodate the new world where cloud-based software powers business, as opposed to hardware, materials, and data centers,” said Hootan Rashidifard, principal from Canaan Partners. “Tropic replaces cumbersome phone calls and emails with a click-and-approve experience, enabling companies to save millions on software without spending time on the phone and in confusing email chains. It’s a CFO’s dream.”
Cloud software has become the fastest-growing spend category across most businesses. In 2021, the global spend on enterprise software is expected to reach $599 billion, a 13.2% increase over the previous year. The average company has more than 100 contracts and enterprise organizations may have 500+. As these numbers have grown, buying, buying, and managing those contracts has become a huge pain point. There is zero price transparency, and the average buying process is complex, often involving four separate systems across multiple team members. Furthermore, the average finance and procurement rep does not have the bandwidth or vantage point to manage the volume of their SaaS subscriptions. As a result, most companies overpay for software significantly.
Tropic enables companies of any stage to deploy a more efficient SaaS procurement process in one click, bringing many historically separate systems under one platform for the first time. When it’s time to buy or renew a contract, users can access Tropic’s Assisted Purchasing service to fully outsource the transaction. Tropic is the last contract you’ll ever need to manage.
“The last thing I want to think about is software procurement. I want my team to have the tools that enable them to do the best work. Using Tropic, we’ve saved 20 percent on our software spend and countless hours,” said Matt Weiler, CFO of Daily Harvest, a Tropic customer. “We don’t have to worry about procurement at all anymore now that I can rely on the Tropic team to do the heavy lifting.”
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Tropic’s hybrid approach is differentiated in the market, by providing services for purchasing software as well as end-to-end tools that enable the procurement process. For example, if a product manager needs a new tool, they can gather market intelligence from Tropic, request the tool of choice, receive an approved and executed agreement, and then receive ongoing notifications of key contract milestones, all with no effort and no internal tracking required. Tropic has processed transactions for more than 1,200 vendors to date.
“Tropic is the system of record for companies that don’t want to lose any time on software procurement. Yesterday’s sourcing playbooks don’t work for SaaS, where speed is everything. The market is demanding a change,” said CEO David Campbell. “By using Tropic, our customers can rest assured they will achieve the financial outcomes they require on every agreement without missing a beat. We want you to fall in love with procurement.”
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