SaaS management leader accelerates growth and doubles new business during record-setting year; new investor Baird Capital leads round
Zylo, the enterprise leader in SaaS Management, announced $31.5 million in Series C funding led by Baird Capital’s Venture Team. Organizations worldwide rely on Zylo to find, manage, and reduce SaaS application spend, sprawl, and risk – challenges brought to the forefront given the current economic climate.
The funding round also included Spring Lake Equity Partners and existing investors Bessemer Venture Partners, Menlo Ventures, and High Alpha, as well as strategic partner and investor Coupa Ventures.
“We’re proud to welcome Baird Capital’s Venture Team and Spring Lake Equity Partners as new investors who, along with our returning partners, recognize the potential Zylo has to cement our position as the SaaS Management category leader,” said Eric Christopher, CEO and co-founder of Zylo. “This funding will allow us to accelerate product innovation and hiring, building on the success we’ve experienced this past year – a growth period that included doubling new business and setting records for demand and customer retention.”
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On average, companies use more than 300 SaaS applications and overspend on licenses by 15% each year, according to Zylo research. Zylo eliminates unnecessary costs, helping companies receive a greater return on their software investment. The opportunity for savings is significant, given that the average SaaS spend reaches $65 million per year. CIOs and CFOs increasingly look to Zylo’s SaaS Management solutions to achieve visibility across their entire organizations’ SaaS commitments and stop SaaS sprawl.
“Investment in SaaS became even more critical in the past few years as companies sought to prioritize new tools and technology that helped keep their businesses running in the pandemic. However, this new environment contributed to accelerated SaaS spending and deployments that have lost efficiency and control, thus becoming its own challenge that is impacting companies globally,” said Benedict Rocchio, Partner at Baird Capital and new Zylo board member. “Baird Capital clearly recognizes the value that Zylo provides to their customers through SaaS management and believes it is of even increased importance in the current economic climate.”
In addition to investing further in product advancements, this funding will allow Zylo to continue to expand go-to-market and engineering teams in the Indianapolis area, along with hybrid hiring throughout the country.
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“With more than 30 million SaaS licenses and $30 billion in spend data under management, Zylo is the clear category leader,” said Byron Deeter, partner at Bessemer Venture Partners. “The need for companies to manage the rapid rise of SaaS and cloud subscription costs is evident. Zylo is growing alongside the demand, and Bessemer is excited to continue to invest and partner to further support their growth.”
Zylo customer Coupa has experienced firsthand the value that Zylo can offer to companies managing hundreds of SaaS applications.
“With a global workforce and thousands of employees, SaaS management wasn’t just a ‘nice to have’ but a critical component of our continued growth,” said Eric Tan, CIO at Coupa. “Zylo gave us the transparency and visibility we were looking for to make strategic and business-aligned decisions.”
This funding announcement comes on the heels of a record-setting year. In addition to Zylo’s increases in demand, new business and customer retention, the company was named by G2 as a leader in two categories: SaaS Spend Management and SaaS Operations Management.