San Francisco-based procurement platform Zip has raised $100m in a series C funding round, giving it a $1.5b valuation.
The funding round was led by Y Combinator, with participation from returning investors CRV and Tiger Global.
Zip also announced a new product, called intake-to-pay, which adds purchase order management, accounts payable automation and global B2B payments to its products.
With the fresh funding, Zip plans to enhance its offering, add to its team—which grew from 60 employees to 250 over the last year—and open a new office Texas, adding to its headquarters in San Francisco and office in Toronto.
This latest investment brings Zip’s total funding to $181m. It raised $25m in its series A and $43m in its series B round.
Garry Tan, president and chief executive officer at Y Combinator, commented: “We continue to invest in Zip because we believe in this outstanding team’s ability to achieve their mission to solve a ubiquitous business problem: spend control.”
Zip’s customers include Snowflake, Coinbase and Canva.
Joe Frederick, senior director of procurement and strategic sourcing at Snowflake, said: “Zip’s procurement platform gives us greater collaboration and visibility into spend while delivering a seamless experience for our employees.
“We chose Zip for its world class visualisation and an experience that requires no additional training for our team. The platform is highly customisable and gives us flexibility to make changes on the fly.”
Ali Rowghani, investor and board member, added: “There are few enterprise software companies that build products for multiple stakeholders and users within large, fast-growing companies.
“The launch of intake-to-pay is further evidence of Zip’s groundbreaking innovation in this space. With the rapid expansion of their product in record time, Zip proves yet again that it is the central platform for end-to-end procurement.”