Finnish growth company SaaShop has raised €1.2M seed funding to continue driving growth and international expansion of its SaaS marketplace.
Finnish growth company SaaShop Oy has raised €1.2M in seed funding to continue driving growth and international expansion of its SaaS marketplace. The funding round included an investment from Business Finland as well as participation from current owners and board members. Overall, the funding round will enable SaaShop to accelerate growth in both the European and North American markets.
“Just as Amazon transformed the way the world buys products of all types, SaaS marketplaces will change the way companies buy software.”
The new financing round was preceded by strong growth: SaaShop doubled its turnover during the last fiscal year, and this year increased its customer base by more than two hundred businesses in the United States alone. The company’s goal is to triple sales in the US and European markets by the end of 2024.
SaaShop is an international marketplace founded in Espoo, Finland in 2018 that connects businesses with SaaS software companies and service providers that specialize in SaaS-related services. The company established its second office in the US in Austin, TX at the end of 2021.
From the SaaShop marketplace, companies can buy all of their subscription software in one place, with one invoice and one point of contact for support and customer service. The SaaShop marketplace portfolio includes a wide range of software, including products from Microsoft, Google, Adobe, DocuSign, Dropbox, Pipedrive, HubSpot, Aircall, F-Secure, Asana, Freshdesk, and ActiveCampaign, as well as thousands of others. Literally any SaaS application can be consolidated with SaaShop using an innovative virtual payment service the company offers.
“This round of funding will enable us to accelerate our go to market efforts and sales in both the USA and Europe,” said Kaj Seeste, SaaShop CEO and Co-founder. “Just as Amazon transformed the way the world buys products of all types, SaaS marketplaces will change the way companies buy software. It’s a huge market that includes essentially every business. Why hassle with potentially dozens of different vendor portals, invoices, credit cards or other forms of payment, receipts, statements, etc., when it’s possible to buy everything you need in one place, with one bill and one point of support? And with SaaShop, it’s free, there is no charge to the customer. In fact, one of the go-to-market challenges is that it seems too good to be true, prospects think there must be a catch, but there isn’t.”
SaaShop has over 2,500 customers consisting primarily of small and medium-size businesses, but also larger organizations, including publicly listed companies, such as Inderes Oyj, a content service aimed at investors.
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“We consolidated our SaaS software with SaaShop because we saw an opportunity to reduce our software costs,” says Mikko Wartiovaara, Inderes Oyj CFO. “As a bonus, we are also able to manage all of our billing and licenses with one service, so it not only costs us less, it’s simpler and more efficient.”
“Just five years ago, on average companies used less than ten SaaS applications, while today, even medium size companies can have more than a hundred software products in use. At the same time, the software industry has completely transitioned to a subscription software model, so billing is recurring; it’s hard cash out the door every month, so it has to be more closely managed,” commented Seeste. “With so many products, and employees coming and going, the ongoing task of buying and managing software has become fragmented and chaotic. Our service dramatically simplifies the process at no charge, and often for less than the customer is paying now.”
Angel investor Jorma Heinonen named new chairman of the board
In May, experienced business executive, angel investor and board member, Jorma Heinonen, became the new chairman of the board of SaaShop Oy, replacing long-time chairman and former CEO of Solita, Jari Niska, who has moved into an advisory role. Heinonen serves on the boards of companies such as Virnex Group and LightningChart, and is active in the Finnish Business Angels Network (FIBAN).
Heinonen’s experience and know-how in international business development supports the company’s growth, internationalization, and investor relations. Along with Kaj Seeste, the company’s founders include Finnish online shopping pioneer Tapio Talvisalo. Talvisalo is known as the founder of Smilehouse Oy, a provider of e-commerce services acquired by Tieto Finland Oy in 2015.