Spendflo Unveils $11M Series A As SaaS Boom Continues

Despite the global economic downturn, the software-as-a-service (SaaS) boom shows no signs of slowing down. Data from market researcher Gartner suggests global spending on SaaS solutions will reach $195 billion this year, up from $146 billion in 2021. A BetterCloud survey found the typical business now uses an average of 130 apps purchased and paid for on a SaaS basis.

It's no wonder business is booming for companies like Spendflo, helping organizations get a handle on how they buy and manage their subscriptions. Spendflo, first featured in Forbes less than a year ago, today announces an $11 million Series A funding round, bringing the total sum raised from investors over the past 12 months to $15.4 million.

Spendflo's argument is that it gives companies an easy way to stay in control of their SaaS contracts. It provides a single view of all their apps, ensuring companies can see how much they're using each subscription, as well as how much they're paying for it. It also offers access to savings on new subscriptions and SaaS subscriptions.

In a market where the number of applications used by many businesses is growing by 20% per year, this is increasingly valuable. Some companies are now spending tens, if not hundreds, of millions of dollars each year on SaaS solutions. The ability to manage and control these expenses is therefore crucial. Even more so given the economic headwinds businesses now face.

“Good finance managers are always on the lookout for solutions that help them save money and operate efficiently,” says Siddharth Sridharan, co-founder and CEO of Spendflo. "But they've become more strategic than ever when it comes to SaaS spend over the past 12 months."

This trend has seen Spendflo's revenue increase 15x since the start of 2022, with customer numbers increasing fivefold. The company quadrupled its own workforce over the same period.

The company's latest fundraising will ensure that this growth is sustained, says Sridharan. "We want to be the solution that scales with businesses as they increase their use of SaaS and their spending grows."

The new capital is intended for two priorities. First, Spendflo hopes to double its business in the US market; as the company now sells globally, North America seems to be a particularly ideal location and the company is keen to expand its local presence in the market.

Goal number two is further product development. Spendflo is expanding its service around three hubs that customers will use to purchase, manage and secure their applications. The platform's buying hub streamlines the SaaS procurement process; management hub provides visibility into SaaS usage and spend, including functionality that allows users to rate each application; the security hub makes it easier for enterprises to ensure that applications are compliant with their cybersecurity systems, both on first-time adoption and on an ongoing basis.

Nevertheless, the overarching goal of Spendflo is to allow users to save money on their SaaS wallets; the company claims to have achieved savings of up to 26% per year on SaaS spend for existing customers.

Rajiv Ramanan, the company's co-founder and CRO, warns that it's too easy for businesses to lose sight of their SaaS spend, as individual contracts tend to be small and therefore go unnoticed. It's not until companies start looking at their overall SaaS spend, he says, that they realize the extent of their exposure.

“We need to make a change,” says Ramanan. "We need to start looking at software as a direct expense, properly and tightly managed, rather than an indirect expense."

Spendflo backers believe this service can enable that change. Today's Series A is led by Prosus Ventures and Accel. Other investors in the company include Together Fund, Signal Peak Ventures and Boldcap Ventures

“Outsourced SaaS purchase...