Saskatoon-based software company partners with Lugard Road Capital and Nicola Wealth
Vendasta today announced C$119.5 million in financing to further accelerate the sales growth of its end-to-end ecommerce platform for companies who provide digital products and services to small and medium businesses (SMBs) worldwide.
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The raise is led by New York-based Lugard Road Capital, joined by Nicola Wealth, the Canadian Business Growth Fund (CBGF), and a set of existing investors. It is the largest information and communication technology (ICT) venture capital round in Canadian Prairie history. The record was previously set by Vendasta in 2019 when it secured a $40 million growth fund.
Vendasta experienced strong growth through 2020 and 2021 as COVID-19 accelerated the adoption of digital technology by small businesses. With annual recurring revenue of more than $50 million and a reach of five million SMBs, the company intends to use the funds to further accelerate its pace of growth.
“Vendasta is solving some of the biggest challenges facing businesses today. The majority of SMBs are struggling to purchase, implement, and use technology solutions. Our platform is quickly becoming the de facto operating system for both small businesses and the technology providers serving them,” said Vendasta CEO Brendan King. “This investment allows us to accelerate our timeline to completely redefine and democratize the way technology, software, and services are delivered to SMBs.”
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“We are thrilled to be partnering with the Vendasta team as they continue to revolutionize how SMBs discover, access, purchase, and ultimately interact with software to better their businesses,” said Doug Friedman, Partner at Lugard Road Capital.
“We see Vendasta being very well-positioned to continue to grow and adapt in an ever-changing environment,” added Kazuki Nohdomi, Portfolio Manager at Nicola Wealth. “Considering the secular shift to digital marketing and ecommerce, and the need for small business owners to take advantage of that, we feel this is a great opportunity that fits well in our diversified portfolio.”
Vendasta is a leading technology company in Western Canada. Based in Saskatoon, it employs more than 500 people and plans to hire up to 150 employees in the coming year.
CIBC Capital Markets, TD Securities Inc., and National Bank Financial Inc. acted as financial advisors to the company on the financing.