Procurement startup saw its valuation jump 47% after raising a $190 million Series D led by .
The round also included new investors , and , along with existing investors, and .
The round values the San Francisco-based company at $2.2 billion. In May 2023, Zip locked up a $100 million Series C at a $1.5 billion post-money valuation.
Zip helps companies with the burdensome process of buying new software and hardware, helping customers with sourcing, approving and paying for business tools.
鈥淶ip is one of those rare opportunities in enterprise software that doesn鈥檛 come along often,鈥� said , general partner at Bond. 鈥淲hat sets Zip apart is its relentless focus on customer success and product innovation, which in today鈥檚 tough macro environment, is exactly what enterprises need to drive efficiency and rein in costs.鈥�
The company will use the new cash to invest in engineering and research and development, including a new internal AI lab to create new AI-powered tools. The money also will be used to expand geographically.
Founded in 2020, the company has raised more than $371 million, .
Procuring investment
Procurement falls under the broader umbrella of enterprise resource planning 鈥� software systems that help enterprises run processes in departments such as finance, human resources and supply chain.
ERP startups have not seen huge funding dollars in recent times, according to Crunchbase .
In 2023, startups in the sector raised only $240 million in 62 deals. So far this year has been slightly better, with $314 million raised in 32 deals.
Zip鈥檚 raise last year was the largest in the space in 2023, and its new funding round is the biggest so far this year.
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