SaaS buying platform Spendflo raises $11 million in funding led by Prosus, Accel

The Series A funding comes 10 months after its seed round. The San Francisco-headquartered company said the fresh capital will help fuel product growth and accelerate global expansion with a focus on the North American market.

The 2021-founded firm has so far raised $15.4 million from investors, including Prosus Ventures, Accel, Together Fund, Signal Peak Ventures and Boldcap Ventures.

Serving customers across North America, Europe, Asia Pacific and the Middle East regions, Spendflo said it has grown 30% month-on-month since the start of 2022, multiplying its revenue 15 times, growing its customer count by 5 times, and expanding the team size fourfold.

Spendflo is now looking to broaden its North America footprint through the hiring of regional market leads and deploying on-ground activity that it hopes will result in greater awareness and Spendflo usage.

“As cost optimisation becomes a priority, Spendflo is becoming the go-to, tailormade solution for buying, managing, securing, and saving on SaaS from one place,” Siddharth Sridharan, co-founder and CEO, Spendflo, said. “It fits like a glove for growth-hungry businesses and helps them unlock maximum RoI on their SaaS stack.”

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In June last year, when Spendflo had raised $4.4 million in seed funding, it had 35 employees. Sridharan told ET that the staff strength has now increased to 85. About 65% of the company’s total revenue is generated from its North America business, 25% from its Asia Pacific business, and 10% from the UK, he said.Spendflo supports the optimisation of everything from a company’s cloud software expenses to financial metrics that matter today, including gross margins, runway and burn rate, said Rajiv Ramanan, the company’s cofounder and chief revenue officer.

“Outsourced SaaS procurement and management is emerging as a dominant area of interest for organisations, driven by a complex SaaS stack and need to rationalise the cost base,” Ashutosh Sharma, head of investments, India, at Prosus Ventures, said.

Spendflo, founded by Sridharan, Ajay Vardhan and Ramanan, serves a clientele that includes Mindtickle, Hasura, Drip, 4G Clinical and Wodify. Its ‘Buying Hub’ streamlines the SaaS procurement process; ‘Management Hub’ provides visibility into SaaS usage and spending, and ‘Security Hub’ facilitates collaboration and fast-tracks buying cycles.