Procurement Provider Zip's Valuation Reaches $1.5 Billion

Procure to pay (P2P) software provider Zip has raised $100 million in a Series C funding round, bringing their newest valuation to $1.5 billion. The funding came from investors including Y Combinator, CRV, and Tiger Global, bringing Zip's total funding to $181 million. 

Zip looks to expand its customer base and presence

With the new funding, Zip aims to accelerate product and user experience innovations, expand its customer base, and introduce generative AI applications to enhance efficiency. 

AI can significantly improve P2P software by bringing automation, intelligence, and efficiency to various aspects of the procurement process. Some ways AI can help are data extraction (including OCR), spend analytics, supplier risk assessment, contract analysis, and fraud detection. Leveraging these AI capabilities can improve cost control and overall operations and reduce risk.

Zip already serves hundreds of customers globally, ranging from startups to Fortune 500 companies. The company plans to invest in talent acquisition and expand its presence with a new office in Dallas, in addition to its headquarters in San Francisco and an office in Toronto.

Zip introduces Intake-to-Pay

Zip has also announced its product launch, Zip Intake-to-Pay, which extends its intake-to-procure platform to further provide procure-to-pay capabilities. The platform includes purchase order management, AP automation, and global B2B payment functionality, offering a unified solution for the entire procurement lifecycle.

Because the P2P industry serves organizations across various sectors, including but not limited to manufacturing, retail, healthcare, finance, and government, procurement software providers must offer and improve features that can be utilized by companies of all types from around the globe.

The needs of organizations that manage procurement processes are ever-increasing, with users now focusing more on experience, scalability, integration capabilities, and advanced analytics.

Zip on G2

Zip’s Intake product is currently a Leader in G2’s Purchasing category, positioning itself in the top 4% of its competitors alongside other Leaders such as SAP Ariba, Coupa, and Procurify. Zip is also a High Performer in the Procure to Pay category, with many of the same vendors in the Purchasing category.

In the last 12 months alone, these two categories have continued to grow in popularity, not just with users but with vendors as well. New products to these categories have grown by 7% and 13%, respectively, with each category increasing its review count, on average, by 30%. 

This influx of new products, along with increased involvement and curiosity of procurement users, will only increase competition, innovation, customization, and competitive pricing, allowing companies to find the solution that best fits their unique needs.

Edited by Shanti S Nair