Software-as-a-service (SaaS) software procurement platform Tropic has raised $40 million in a Series B funding round, the company announced in a news release Tuesday (Feb. 15).
Tropic says this brings its total funding to $65 million since August of last year. The latest round will help it expand its global footprint, add staff and launch four new software modules this year.
Since the fall of 2021, Tropic has more than doubled its revenue and added clients that include Notion, Nextdoor, Faire and Flatiron Health.
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The company noted that cloud software is the fastest growing IT spending category, projected to reach $700 billion this year. Yet many companies need to deal with legacy software procurement platforms that are designed for point-in-time hardware purchases.
At the same time, hardware spending is shrinking, leading buyers to have to resort to patchwork point solutions.
“Tropic is the answer,” the company said. “It is the next-gen Procurement System of Record and replaces legacy P2P platforms that are costly, inefficient and resource intensive for modern companies to use. Companies of all sizes — from startups to Fortune 500 companies — can use Tropic’s end-to-end platform to buy software, manage contracts, monitor usage and turn procurement into a competitive advantage.”
The company said its platform streamlines each stage of the procurement, providing insights into savings opportunities. Tropic’s Assisted Purchasing service can then realize those savings through fractional procurement resources.
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“Today, we are filling an important gap in the market with a procurement platform that is elegant, easy to use and built for SaaS, finally,” said Tropic CEO David Campbell. “In time, Tropic will sit at the center of every software transaction, creating compounding value and efficiency for every new user.”
Tropic’s latest funding round was led by venture capital firm Insight Partners. Managing director Teddie Wardi said the company is operating at a time when procurement technology has not evolved, making procurement “a four-letter word.”
“Cost control has never been more important, and there is a tremendous opportunity to reinvent this category,” said Wardi. “Tropic is clearly positioned to win.”