Many people have many online subscriptions that they barely use and can save a lot of money with a service like Truebill to see all of their recurring payments in one place. Spendflo wants to do the same for companies subscribing to SaaS services and is aimed at CFOs and CFO teams.

The startup announced today that it has raised $4.4 million in seed funding led by Accel India and Together Fund, with participation from BoldCap and Signal Peak Ventures, as well as company founders and operators. such as Airbase, Zuora, Ivanti, CleverTap, Slintel, Lamda Test, Haptik and Wingify.

Since its launch six months ago, Spendflo claims to have saved an average of 23% for its customers. Its clients include Airmeet, Cronwpeak, Lambda Test, Urban Company, WIntify and Yellow.ai.

Founded in 2021 by Siddarth Sridharan, Ajay Vardhan and Rajiv Ramanan, Spendflo brings all SaaS contracts together in one place, giving businesses visibility into their spend. It also offers assisted shopping and claims to be able to guarantee savings through proprietary benchmark data. The company was part of the first cohort of Atomsan Accel program for pre-seed startups with $250,000 in non-dilutive capital.

Sridharan told TechCrunch that when he worked at Volta Charging as its first employee, he “watched the company go from seed to IPO during my tenure. During that time, I myself- even brought in more than $10 million worth of SaaS tools.He added that his CFO would consult with him quarterly, ordering him to cut his spending in half.

“Honestly, it was really painful because I had at least 150 different subscriptions at the time and SaaS purchasing had become decentralized, with no visibility into pricing and renewals,” Sridharan said. “But, in this phase, I was struck by the fact that other people may also be facing the same problem. So I started to inquire in the financial communities to find out if there could be a solution to this.

Purchasing SaaS is decentralized because it is no longer just CIOs who buy SaaS, but all stakeholders, Srdiharan added. “The challenge here is that current SaaS purchases are made through popular but unreliable channels such as G2 REviews, Quora, and Reddit for pricing information. Approvals end up being stuck in endless email trials.

On the other hand, Spendflo offers businesses a centralized place to track their SaaS spending and usage.

As a use case, Sridharan spoke to TechCrunch about Airmeet’s experience with Spendflo. First, it integrated Airmeet on its platform and allowed them to centralize contracts and visualize expenses. Next, the platform’s strategic buyer and CMS worked to create a buying roadmap based on Airmeet’s needs. Finally, the Spendflo buying team took over buying, streamlined the whole process and started saving money. Sridharan said that after using Spendflo, Airmeet purchases now run 3x faster and save more than 16% of their SaaS spend.

Spendflo Subscription Dashboard

Sridharan added that small and large businesses spend nearly $330 billion on SaaS services, in addition to spending around $1 trillion on their own IT. “Spending on SaaS products is up 25% year over year. SaaS has become the only expense over which CFOs have no visibility or control. We realized that the role of the CFO is changing,” he said. “It’s not just about accounting anymore. Legal, ESG and FinOps, among others, all report to the CFO. CFOs are no longer the whistleblower, but they are now leaders within the company.

Spendflo sells to finance teams, working closely with department, security and department heads. Sridharan said he typically sees an average of six stakeholders in the SaaS tool buying process. But, he added, Spendflo “follows a holistic approach”, which means that it allows each SaaS buyer to generate and renew requests, view all tools, contracts and security documents, and collaborate with suppliers on renewals and new purchases.

The company monetizes by charging a flat fee on the total SaaS spend it manages. Sridharan said it offers a money-back guarantee on subscription fees, which makes adoption of our services by financial organizations budget-neutral. “We consistently show 2-5x ROI savings. On average, we save 23% on their annual SaaS spend. »

In a prepared statement, Accel India Partner Dinesh Katiyar said, “SaaS pay-as-you-go tools have been a boon to businesses around the world. They all quickly turn to suppliers who offer these tools. However, the massive exodus to SaaS has created a new challenge. Instead of centralized procurement workflows, each business function now purchases what it needs. They overspend through unoptimized pricing plans, underutilized tiers, and unused licenses. Spendflo is committed to bringing back spending efficiency without compromising business velocity. »



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here