The round saw participation from BoldCap and Signal Peak Ventures, along with investments from a bunch of founders of companies such as Airbase, Zuora, Ivanti, CleverTap and Slintel.
The Spendflo platform is vendor-agnostic and offers companies buying SaaS software the opportunity to centralize contracts, gain visibility into spending, handle renewals, and get guaranteed savings on their expenditure in buying SaaS software.
Spendflo was part of the first Atoms cohort, a program with $250,000 funding to propel pre-seed startups with capital, mentorship from experienced entrepreneurs and community support. Over the last six months, it has achieved over 23% of savings for customers on their SaaS product purchases. Just under a year of launch, Spendflo is helping many fast-growing companies such as Airmeet, Crownpeak, LambdaTest and others with their SaaS procurement.
Founder and CEO Siddharth Sridharan told ET the start-up is looking at a $23 billion market opportunity, with the oldest competitor — US-based Vendr — just 3.5 years into the business.
Spendflo would grow to manage $10 billion of SaaS spending in the next three years, given how sharply the SaaS software market has been growing globally and the ballooning basket of SaaS tools each company has to pay for and operate said, Sridharan to ET.
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Earlier, Sridharan headed the business operations team and handled SaaS procurement at Volta Charging, an American EV infrastructure company. He teamed up with Ajay Vardhan, a former executive from Tone – a tech company to enable businesses with SMS marketing, among others, and Rajiv Ramanan, a former Freshworks executive who led multiple growth channels at the Nasdaq-listed company, to begin Spendflo.
“Instead of centralized procurement workflows, we now have each business function buying what they need. They overspend through unoptimized pricing plans, underutilized tiers and unused licences,” said Dinesh Katiyar, partner, Accel India.
The other investor, Together Fund, believes Spendflo’s execution would help businesses grow faster: “The team at Spendflo would simplify managing SaaS procurements, and help companies save on their SaaS expenses,” said MD Manav Garg.
Spendflo, with 35 employees now, will use the capital raised to hire across key Indian locations and the US.