Procurement Startup Zip Raises $100M, Lifts Valuation to $1.5B

Zip, a startup specializing in procurement software, has raised $100 million in a Series C round backed by Y Combinator, CRV and Tiger Global, bringing its post-money valuation to $1.5 billion.

The new funding brings its total capital raised to date to $181 million, including its seed, $25 million Series A and $43 million Series B rounds.

Founded in 2020, Zip provides a cloud platform that helps companies purchase goods and services from suppliers. In the enterprise, large purchases can involve a significant number of steps. The company says its platform streamlines the process to help procurement teams operate more efficiently.

Zip CEO Rujul Zaparde says the financing will be put toward “new applications of generative AI” and “encouraging adoption” across the startup’s customer base.

In a recent survey conducted by Zip, the firm found that while nearly half of the businesses it surveyed are looking to reduce operational costs, only 11% stated that the majority of their spending is under management.

While not a well-known industry, companies do need software systems that help run processes in departments such as finance, human resources and supply chain. SAP, Ariba and Coupa have built large companies in the sector.

Zip currently claims to have more than 200 business customers, including Snowflake, Coinbase, Canva, Webflow and Databricks.