Ivalua, a spend management software company headquartered in Redwood City, California and Paris, has raised USD70 million in growth equity minority funding from KKR.
KKR will become a new shareholder alongside the founders and Ardian, which invested in Ivalua in 2011.
Spend management software is increasingly becoming a strategic tool for businesses as it boosts profitability by streamlining procurement processes, putting an end to rogue spending and managing all vendors and contracts through a centralised platform. The USD24.5 billion spend management market is developing rapidly and emerging as a highly dynamic segment of the broader software-as-a-service (SaaS) market.
Ivalua's Source-to-Pay (S2P) platform is relied on by over 250 blue chip customers globally, including Honeywell, the City of New York, Veolia, Thales, Orange, Michelin, and Deutsche Telekom.
David Khuat-Duy, CEO and founder of Ivalua, says: "The spend management software market is undergoing a huge transformation, coming out from under the shadow of better-known SaaS sectors. Ivalua is a success story in this strategic market. Its strong and differentiated product allows for flexibility and easy vertical integration and has led to the highest client retention rate in the market. We are partnering with KKR to facilitate further investment and innovation in our suite and accelerate our pursuit of becoming the clear leader in the source-to-pay market. For us, KKR is the right partner because of their global network, deep expertise in procurement and technology, and experience in partnering with growth stage companies and entrepreneurs to help them achieve their global ambitions.”
Lucian Schoenefelder, director at KKR, says: “After our successful investments in Fotolia, OVH and Captain Train, Ivalua is our fourth investment into a French technology company over the last few years, which speaks to the strength of the local technology ecosystem. We are incredibly excited about partnering with the founders and Ardian. KKR is very well-positioned to help Ivalua fulfill its global ambitions given our track-record of scaling European technology companies with the help of our global platform and KKR’s portfolio of more than 120 companies, many of which could benefit from Ivalua’s product.”
