Tropic Raises $40M Series B with Insight Partners to Replace Legacy Software Procurement Platforms
NEW YORK, Feb. 15, 2022 /PRNewswire/ -- Tropic, the cutting-edge SaaS software procurement platform, today announced that it has raised $40 million in a Series B round led by New York-based global private equity and venture capital firm Insight Partners. The company has now raised a total of $65 million since August 2021. Tropic will use the proceeds to further fuel its exponential growth, [expand its global footprint], build its team and launch four new software modules in the next two quarters, solidifying its differentiation, as the only end-to-end solution to the SaaS problem. Over the past four months, Tropic had more than doubled its revenue and added customers like Notion, Nextdoor, Faire, and Flatiron Health to its roster of leading brands.
Cloud software spend has been by far the fastest growing IT spend category, and it is projected to grow 11.5% YoY to nearly $700B in 2022. The challenge for enterprises is that legacy software procurement platforms are primarily designed for point-in-time hardware purchases, not software that is always on and always changing. Meanwhile, the hardware spend has been steadily declining, and it now has shrunk to only 30% global IT spend. This has caused the enterprise procurement landscape to be increasingly disadvantaged. Buyers have resorted to cobbling together point solutions, which have only exacerbated the rising SaaS spend problem and company dissatisfaction.
Tropic is the answer. It is the next-gen Procurement System of Record and replaces legacy P2P platforms that are costly, inefficient and resource intensive for modern companies to use. Companies of all sizes – from startups to Fortune 500 companies - can use Tropic's end-to-end platform to buy software, manage contracts, monitor usage and turn procurement into a competitive advantage. The platform streamlines every stage in the procurement workflow and presents insights on cost-saving opportunities. From there, Tropic's Assisted Purchasing service brings those savings to life through fractional procurement resources. Tropic has built this end-to-end solution to plug into any existing environment and create value from day 1.
"Technology companies are beginning to understand the procurement imperative, but yesterday's tools were not designed for today's most important category, SaaS. This is creating major frustrations," says Tropic CEO David Campbell. "Today, we are filling an important gap in the market with a procurement platform that is elegant, easy to use, and built for SaaS, finally. In time, Tropic will sit at the center of every software transaction, creating compounding value and efficiency for every new user. We look forward to working with Insight as we launch our new software modules and take the next steps on our journey."
"While cloud software has penetrated every business function, in many cases replacing a hardware or on-prem alternative, procurement technology has failed to evolve to meet the new requirements, making procurement a four-letter word. Cost control has never been more important and there is a tremendous opportunity to reinvent this category. Tropic is clearly positioned to win," said Teddie Wardi, Managing Director at Insight Partners. "We look forward to partnering with the Tropic team as they continue to grow and scale up."
Stakeholders can use Tropic to buy additional licenses, renew contracts, buy new tools, and cancel agreements with the click of a button. At the same time, Tropic also empowers central finance and procurement teams with unprecedented visibility and control over approvals, sourcing events, spend management, renewal dates, and vendor market insights. Activities that used to require hours of research, email, and phone calls now happen in a point-and-click format on the Tropic platform, with Assisted Purchasing absorbing the manual effort. Tropic has processed transactions for over 1,300 vendors, and it is using the insights to create ongoing, differentiated value for its customers.
"Buying software is not transactional. It takes work. Before Tropic, our process was labor intensive and inefficient; we knew we were leaving money on the table because we were so rushed. We evaluated every solution in the market, and chose Tropic to solve these problems," said Ryan Roccon, VP of Finance at Zapier. "Since implementing Tropic, we've shortened our approval cycles and saved tons of money, but most importantly, our business stakeholders have become true advocates of procurement for the first time."
Tropic is the Procurement System of Record. The average company is overpaying on software by 30% because there are too many agreements to manage internally and there's no transparency. Tropic levels the playing field with data, tools, and services, enabling customers to execute complex sourcing events with the click of a button. Tropic manages more than $300 million in spend for companies like Qualtrics, Intercom, Vimeo, and Zapier. Tropic is also hiring! Learn more about Tropic and available careers by clicking "Jobs" on the Tropic homepage.
About Insight Partners
Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments. Insight's mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.