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Tropic raises $25M in a Series A funding round led by Canaan Partners to make software procurement an easy, cost-effective one-click experience
New York-based Tropic, a startup that automates SaaS procurement for tech-forward companies, has raised $25 million in a Series A funding round led by Canaan Partners to make software procurement a one-click experience, a press release from the company said.
Tropic, founded in 2019, enables companies of any stage to deploy a more efficient SaaS procurement process. Its SaaS procurement model gathers all functions under one platform and allows users to access its one-click purchasing service to outsource the transaction.
It states that this approach saves companies about 23 percent on average in software purchases.
David Campbell, co-founder and CEO of Tropic, stated that Tropic is the system of record for companies that don’t want to lose any time on software procurement.
“Yesterday’s sourcing playbooks don’t work for SaaS, where speed is everything. The market is demanding a change. By using Tropic, our customers can rest assured they will achieve the financial outcomes they require on every agreement without missing a beat. We want you to fall in love with procurement.”David Campbell, co-founder and CEO of Tropic
Tropic stated that the funding came when its managed spend crossed $250 million and added over 60 customers in the last year. It would use the proceeds from the financing to expand its platform functionality to deliver more savings, streamlined workflows and provide better insights. It also aspires to expand its ecosystem of integrations into existing procurement tools.
Hootan Rashidifard, principal from Canaan Partners, stated that Tropic is transforming procurement to accommodate the new world with cloud-based software as opposed to hardware, materials, and data centers and added,
“Tropic replaces cumbersome phone calls and emails with a click-and-approve experience, enabling companies to save millions on software without spending time on the phone and in confusing email chains. It’s a CFO’s dream.”Hootan Rashidifard, principal from Canaan Partners