Why Zip was able to Secure US$190m in Series D Funding

Zip has undoubtedly asserted itself as a leader in the field of procurement orchestration over the past few years. 

With the power of AI behind it, Zip enables businesses to streamline the procurement process, reduce risk and fuel growth by providing a unified platform that integrates teams, tasks and tools for supplier collaboration. 

The latest milestone in Zip’s meteoric rise arrives in the form of a US$190m Series D funding round led by BOND, which represents the biggest investment in procurement technology in more than two decades and one of the largest for any enterprise SaaS company in 2024. 

It also brings Zip's valuation to US$2.2bn – a significant increase from its US$1.5bn valuation in 2023. 

Zip’s meteoric rise

In today’s increasingly globalised economy, where businesses face mounting pressure to optimise spend and mitigate risk, procurement has become a truly critical function. 

As companies spend trillions of dollars on everything from office supplies and software subscriptions to professional services and marketing, procurement now represents the second-largest area of business spend after payroll.

However, the purchasing process has largely remained stuck in the past when it comes to speed, complexity and inefficiencies. 

“Procurement is broken,” proclaims Rujul Zaparde, Co-Founder and CEO at Zip. “Companies are wasting billions of dollars and countless hours navigating byzantine approval processes, dealing with security risks and manually entering data. 

“Zip has already proven we can fix that, saving customers billions of dollars and thousands of hours of time. Our new round of funding will allow us to continue to revolutionise business spending.”

Transforming operations

Zip’s platform stands out thanks to an intuitive, consumer-grade interface that makes purchasing as easy as online shopping, while ensuring compliance, efficiency and cost optimisation. 

It streamlines complex workflows across various departments, from legal and IT to security and finance, seamlessly connecting all teams involved in the procurement lifecycle.

Industry giants including Snowflake, Discover and Sephora have already transformed their operations through this holistic approach. Collectively, they have saved US$4.4bn in procurement spend through Zip’s platform in less than four years.

To date, more than US$107bn in customer spend has been processed through Zip, which has tripled growth across large enterprises this year alone.

“Zip is one of those rare opportunities in enterprise software that doesn’t come along often,” comments Jay Simons, General Partner at BOND.

“What sets Zip apart is its relentless focus on customer success and product innovation, which, in today’s tough macro environment, is exactly what enterprises need to drive efficiency and rein in costs. 

“The team has built a product so essential that it’s quickly becoming the go-to platform for the world’s biggest companies. We’re confident Zip is primed to be a staple in every Fortune 500 tech stack.”

Redefining SRM and spend management

Salesforce is widely recognised for revolutionising customer relationships; Workday is often hailed for transforming employee management.

Now, in a similar vein, Zip is redefining how businesses interact with their suppliers and manage spending. 

The Series D funding will fuel Zip’s mission to become the global standard for B2B spend and will be strategically deployed to:

• Accelerate R&D efforts: Zip is doubling down on its efforts to build best-in-class procurement software entirely in-house. This includes further development of its highly successful Procure-to-Pay (P2P) product line, which has seen explosive growth and adoption by major enterprises such as Northwestern Mutual, Toast and Coinbase. The funding will also support expansion into new product lines to address evolving market needs.
• Establish the Zip AI Lab: The goal here is to continue rapidly developing and deploying cutting-edge AI solutions that integrate effortlessly with legacy enterprise systems. Zip’s existing AI suite has already dramatically improved procurement processes across legal, security, finance and IT teams. 
• Broaden global expansion: Particular focus is on the EMEA region, where Zip has already witnessed growth exceeding 200% in the past year. Zip will leverage its new London office and expanded EMEA team to meet surging demand across the UK, Germany and France, solidifying its position as the go-to procurement solution for large enterprises worldwide.

Additional participants in the funding round included new investors DST Global, Adams Street and Alkeon, alongside existing investors Y Combinator and CRV.

Make sure you check out the latest edition of Procurement Magazine and sign up to our global conference series – Procurement & Supply Chain LIVE 2025.

Procurement Magazine is a BizClik brand.